As India accelerates towards an electric vehicle (EV) future, the government has rolled out a dynamic array of incentives and subsidies to turbocharge the setup of EV charging infrastructure across the nation. In this blog, we’ll unravel the exciting world of EV charging stations in India, exploring the plethora of benefits and support mechanisms provided by the government to foster a seamless transition to electric mobility.
Speedy Regulatory Nod: Paving the Way for Charging Stations
Setting up public EV charging stations has been streamlined as a de-licensed activity, opening the doors for both individuals and companies to participate. The process is now more straightforward, provided the technical standards are met.
Moreover, charging station operators can enjoy a fast track to electricity connections, thanks to the priority status granted by distribution companies. This facilitates a smoother and quicker setup process, which is crucial for expanding the EV charging network rapidly.
Read here- How to make a profitable EV charging station in India.
Financial Perks: Making EV Charging Economical
The financial incentives rolled out by the government play a pivotal role in making EV charging economically viable. Here’s a glimpse of the financial benefits offered:
- Tariff Subsidies: EV charging stations benefit from capped electricity tariffs, pegged at the Average Cost of Supply plus 15%. This results in lower operational costs compared to commercial tariffs.
- Charger Subsidies: Under the FAME scheme, the government provides upfront subsidies on chargers. Slow chargers receive a subsidy of Rs 10,000 each, while fast chargers enjoy a substantial Rs 1 lakh subsidy.
- Land at Subsidized Rates: State governments are encouraged to allot land for charging stations at rates significantly below market prices. This can be as low as 10-20% of the market rates, easing the financial burden on charging infrastructure providers.
Priority Treatment: Ensuring a Smooth Ride for Charging Stations
Charging stations receive preferential treatment in the process of securing electricity connections from distribution companies, giving them an edge over other commercial establishments.
Further, public sector oil marketing giants like IOCL and HPCL have been directed to prioritize the establishment of charging stations at their petrol pumps. This strategic move taps into existing infrastructure, making it more convenient for users to charge their EVs.
The key details about the government subsidy on EV charging stations announced in March 2023
| Key Information | Details |
|---|---|
| Government Scheme | FAME India Scheme Phase II |
| Grant Amount | Rs. 800 crores |
| Recipients of Grant | PSU Oil Marketing Companies (OMC): Indian Oil (IOCL), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) |
| Number of Charging Stations | 7,432 public fast-charging EV stations |
| Infrastructure Support | Includes LT and HT cables, distribution transformer, circuit breakers/isolators, AC distribution boxes, mounting structures, protection equipment, fencing, and civil work |
| Infrastructure Cost Coverage | Up to 60% of the overall cost for setting up a public EV charging station |
| Completion Deadline | March 2024 |
| Current Number of Charging Stations in India | Around 6,586 |
| Impact on EV Charging Ecosystem | Significant push with the addition of 7,432 charging stations, enhancing charging capacity for electric two-wheelers, four-wheelers, minibuses, and light commercial vehicles |
| Geographical Coverage | Fast-charging stations to be set up in metros, cities, smart cities, hilly states, expressways, and highways across the country |
| Charging Station Usage | Charging stations to cater to electric two-wheelers, four-wheelers, minibuses, and light commercial vehicles |
| Expected Benefits | Enhanced EV adoption due to increased availability of charging stations, providing a convenient and seamless charging experience |
| Strategic Locations | Charging stations near offices, lodging, and highway restaurants to facilitate quick recharging for hassle-free inter-city and long-distance travel |
This table provides a concise overview of the key aspects of the government subsidy on EV charging stations in India.
Additional Support: Navigating the Regulatory Landscape
Recognizing the need for a well-coordinated approach, state electricity boards have been directed to streamline and facilitate regulatory approvals for EV charging infrastructure. This proactive measure ensures a hassle-free regulatory environment, allowing charging stations to proliferate without unnecessary delays.
Additionally, the guidelines mandate the creation of a comprehensive national online database. Managed by the Central Electricity Authority through distribution companies, this database keeps tabs on all public charging stations. It serves as a valuable resource for monitoring and disseminating critical information such as locations, charger types, and operational timings.
Monitoring and Information Support: Keeping Tabs on Charging Stations
A national online database managed by the Central Electricity Authority is the linchpin of information dissemination. This database, compiled with the cooperation of distribution companies, ensures that real-time information about charging stations, including locations, charger types, and operational timings, is readily available.
Furthermore, state electricity boards play a pivotal role in facilitating and streamlining regulatory approvals, ensuring that the bureaucratic maze is navigated swiftly and efficiently.
Want to know more? Here is the official document.
In conclusion, the gamut of incentives and subsidies unveiled by the Indian government paints a compelling picture for companies and startups eyeing the EV charging infrastructure space. As the wave of EV adoption gains momentum, the need for charging stations becomes paramount. The robust government support not only enhances the viability of private investments but also propels India towards a greener, sustainable future on the wheels of electric mobility. The road ahead is paved with incentives, and the journey promises to be electrifying. You can also set up your EV charging station in India with the help of the government and Hicharge. Get the best EV chargers that are efficient and profitable for your future business. Take the leap now.
