New Delhi: India requires an estimated capital expenditure of Rs 16,000 crore to scale up public electric vehicle (EV) charging infrastructure and meet its 2030 electrification goals, according to a FICCI report.
The report, titled “Electric Vehicle Public Charging Infrastructure: 2030 Roadmap”, highlights that low utilisation of charging stations, currently less than 2%, remains a key challenge to financial viability. It suggests aiming for 8-10% utilisation rates by 2030 to ensure profitability and scalability.
A major hurdle cited in the report is the fixed electricity tariff structure, which imposes high costs regardless of energy consumption, making it difficult for public charging stations to break even. While states like Uttar Pradesh, Delhi, and Gujarat have implemented no or low fixed tariffs, several others face higher fixed charges, further challenging financial feasibility.
The report outlines five core challenges delaying EV charging infrastructure growth: financial viability, power-related issues with DISCOMs, land acquisition problems, operational difficulties, and lack of standardisation.
To address these, FICCI recommends several measures, including:
Reducing GST on EV charging services from the current 18% to 5%, aligning with other segments in the EV value chain.
Shifting to a single-part tariff system with consistent pricing across all states.
Mandating state DISCOMs to ensure timely installation of public charging stations as per Ministry of Power guidelines.
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The report identifies 40 cities and 20 key highways as priority areas for infrastructure expansion. These cities have shown higher EV adoption rates between 2015 and 2023-24 and are expected to lead EV penetration over the next 3-5 years. The 20 highway stretches, connecting these cities, account for about 50% of vehicular traffic.
Further, it suggests promoting electric three-wheeler (E3W) adoption by removing permit requirements or allowing existing CNG permits to shift to E3Ws. Additionally, it calls for the establishment of state-level monitoring cells comprising industry players and government authorities to oversee infrastructure implementation.
The report underscores the need for immediate policy interventions and coordinated efforts by stakeholders to ensure India’s smooth transition towards sustainable transportation.
