The burgeoning electric vehicle (EV) sector in India is poised for a significant leap ahead with the support of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. This will help fast-track the centre’s goal of achieving 30 percent of all EVs by 2030. With an anticipated budget allocation for dedicated expansion of EV charging infrastructure, there’s a need for a strategic blueprint for the utilization of these funds for the sector’s growth.
The future of sustainable mobility in India is intricately linked to a robust and accessible charging infrastructure network. By empowering DISCOMs to establish a resilient power infrastructure and allocating land for setting up EV public charging stations on strategic public locations within the city and on highways & expressways, we can significantly address some crucial issues of building convenience and reduce range anxiety thereby boosting the adoption rate of EVs in the country.
Despite being available for some time, EVs garner only about 6.3 % market share. As of February 2024, 12,146 public EV charging stations are operational across India. However, the current public charging network is still limited compared to the projected growth in EV adoption. Estimates suggest India may need anywhere from 1 charging point per 20 EVs to 1 per 150 EVs, depending on various factors.
To leverage the FAME scheme effectively, we must address several barriers. Standardizing the procedure for obtaining electricity connections for EV charging stations across states is crucial. Currently, the cost and complexity of these procedures vary significantly, posing a substantial hurdle. A solution to this would be to set a predefined cap on these costs and ensure DISCOMs bear the upstream infrastructure costs.
Another crucial aspect is the need for standardized and interoperable charging technologies. Information on charging station locations, charger type & standards, pricing, and availability must be unified in a singular database format, easily accessible through popular navigation platforms. This would enhance the charging experience and facilitate seamless EV journeys akin to filling fuel at petrol stations.
Access to finance remains a significant barrier for establishing public EV chargers. A recommendation to the central Government is to prioritise sector lending by Public Sector Banks and Financial Institutions, coupled with favourable interest rates to spur investment in EV charging infrastructure. Additionally, allowing CSR funds to be utilized for setting up public charging stations could provide a vital boost in funding.
Policy and regulatory reforms are also necessary to streamline the deployment of EV charging stations. It is important that the Government consider reducing GST on EV charging costs from 18% to 5% and eliminating double taxation on service charges, which currently hampers the cost-effectiveness of operating EVs. Such measures would align with the government’s broader push towards EV adoption and make EVs more competitive with traditional fuel-based vehicles.
Furthermore, simplified land use policies are needed to facilitate the establishment of charging stations, especially in urban and semi-urban areas. Allowing deemed land use conversion for EV charging infrastructure without extensive mandates would unlock easier access to land banks and expedite the proliferation of charging networks.
State governments should be encouraged to establish zero-emission zones in major cities where only EVs are permitted, promoting the transition to electric mobility. The Government should also look at offering perks for EV owners such as free parking, toll exemptions, and access to high-occupancy vehicle lanes.
To ensure the financial viability of public EV chargers, the focus needs to be on incentivizing the business through FAME subsidies, tax holidays, and income tax rebates. Special incentives for setting up charging stations in disadvantaged locations and promoting off-peak charging through state-sponsored programs could further enhance the economic sustainability of the EV charging infrastructure sector.
As the EV market evolves in India, private sector collaboration with government bodies, DISCOMs, and other stakeholders is crucial to create a comprehensive and efficient EV charging ecosystem. The proposed utilization of the FAME scheme’s budget, combined with targeted policy interventions and financial incentives, can drive the transformation of India’s transportation landscape towards a more sustainable and electrified future.
Views are personal. The article is authored by Anmol Singh Jaggi, Co-founder – BluSmart, Tushar Garg, Chief Executive Officer – BluSmart Charge and Kanv Garg, Chief Growth Officer – BluSmart