India Needs ₹16,000 Cr for EV Charging Infrastructure by 2030: Report
A FICCI report reveals India needs ₹16,000 crore to develop EV charging infrastructure by 2030. It outlines challenges, such as financial viability and standardisation, and suggests prioritising top cities and highways to support EV adoption and scalability.
India must invest ₹16,000 crore in capital expenditure to meet the growing demand for public EV charging infrastructure by 2030, according to a report by the Federation of Indian Chambers of Commerce & Industry (FICCI). The report, titled "Electric Vehicle Public Charging Infrastructure: 2030 Roadmap," highlights the urgent need for a scalable and viable charging ecosystem to support India’s transition to clean energy.
Current State of EV Charging Infrastructure
The report reveals that the utilisation rates for public EV charging stations are currently below 2%, making financial viability a significant challenge. To achieve profitability and scalability, utilisation must increase to 8-10% by 2030.
One major hurdle is the cost structure of electricity tariffs, particularly fixed charges. While states like Uttar Pradesh, Delhi, and Gujarat have low or no fixed tariffs, others impose high fixed charges, further affecting the viability of public charging stations.
Key Challenges in Scaling EV Charging
The report identifies five major obstacles to scaling up EV charging infrastructure:
- Financial Viability: Low utilisation rates and high costs make it difficult to achieve profitability.
- DISCOM Issues: Distribution companies face operational and policy challenges in establishing charging stations.
- Land Acquisition: Securing land for charging stations remains a bottleneck.
- Operational Hurdles: Issues like maintenance and user experience impact scalability.
- Standardisation and Interoperability: Lack of uniform guidelines across states hinders seamless operations.
Recommendations for EV Charging Development
The FICCI report outlines several policy recommendations to enhance EV charging infrastructure:
1. GST Rationalisation
Standardise GST rates for EV charging services from 18% to 5%, aligning it with the broader EV value chain.
2. Revised Tariff Structure
Adopt a single-part tariff model with consistent pricing across states, replacing the current two-part tariff system.
3. Electric Three-Wheelers (E3W)
Promote E3W adoption by removing permit requirements and allowing seamless transitions from CNG to electric vehicles.
4. State-Level Coordination
Establish a state-level cell with industry and government representation to monitor and implement the charging infrastructure roadmap.
5. Priority Areas
Focus on the top 40 cities with high EV sales and 20 highway stretches that contribute to 50% of vehicular traffic. These regions are projected to witness higher EV penetration within the next 3-5 years.
Ministry of Power Guidelines
The report recommends mandating the Ministry of Power guidelines for installing and operating EV charging infrastructure. State discoms should be made responsible for the timely establishment of public charging stations.
Financial Viability and Scalability
To address financial challenges, the report suggests incentivising private investments and ensuring competitive pricing for electricity. The roadmap also highlights the importance of building a robust charging ecosystem that aligns with India’s target of 30% EV adoption by 2030.
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