Government offers 80% subsidy for EV fast-charging stations nationwide
Business Standard, 6 Jan '25
India's central government will provide an 80% subsidy or higher (potentially up to 100% in exceptional cases) for the upstream infrastructure necessary to establish public fast-charging stations for electric vehicles across the country.
This initiative falls under the Rs. 20 billion (US$ 240.2 million) PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme, which replaces the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India schemes.
As outlined in the draft guidelines issued by the Ministry of Heavy Industries (MHI), the scheme aims to support the deployment of 72,300 fast chargers. These include 48,400 chargers for electric two- and three-wheelers, with an allocation of Rs. 5.8 billion, 22,100 chargers for electric four-wheelers, with Rs. 10.6 billion designated; and 1,800 chargers for electric buses and trucks, supported by Rs. 346 crore.
Under the scheme's financial structure, the MHI will release 30% of the incentive at the tender award stage, 40% upon deployment of the charging station, and the remaining amount upon successful commencement of commercial operations.
The draft specifies minimum charging capacities: 12 kilowatts (kW) for electric two- and three-wheelers with a benchmark cost of Rs. 150,000, 60 kW for electric four-wheelers with a benchmark cost of Rs. 600,000, and 240 kW for electric buses with a benchmark cost of Rs. 2.4 million.
The MHI has identified 40 priority cities for the development of electric four-wheeler charging infrastructure, selected based on the cities' high share of electric vehicles. Notable examples include Delhi (14.6%), Bengaluru (12.2%), Mumbai (9.5%), Hyderabad (7.4%), Pune (5.2%), as well as Ludhiana, Jodhpur, and Udaipur.
Additionally, 40 highway corridors for electric bus traffic and 20 for electric trucks have been prioritised for charging infrastructure. These include routes such as Hyderabad to Vijayawada (270 kilometres), Pune to Kolhapur (230 kilometres), and Delhi to Chandigarh and Agra (240 kilometres each) for electric buses. For trucks, priority highways include Delhi-Chandigarh, Jaipur-Delhi, Gorakhpur-Lucknow, and Vijayawada to Visakhapatnam.
State and central ministries, including those responsible for road transport, tourism, health, railways, and aviation, will aggregate demand for electric vehicle charging stations across cities and highways through their respective organisations. States are required to establish a nodal agency to manage this process, submit proposals to the MHI for approval, and assist with land identification, access, and the bidding process for appointing charging point operators.
Charging stations deployed under this programme must comply with the phased manufacturing programme to qualify for subsidies. States will also provide technical support for the operation of these stations, which must adhere to MHI standards.
The implementation timeline for the programme includes issuing tenders within 16 weeks of the scheme's approval, completing the bidding process within 26 weeks, disbursing the initial tranche of incentives in 28 weeks, and achieving commercial operation of the charging infrastructure within 52 weeks.