India needs ₹16,000 crore for public EV Charging by 2030: FICCI
India requires an estimated ₹16,000 crore in capital expenditure to address the growing need for public electric vehicle (EV) charging infrastructure and meet its goal of over 30% EV adoption by 2030, according to a report by FICCI.
The report, “Electric Vehicle Public Charging Infrastructure: 2030 Roadmap,” highlights significant challenges in the financial viability of public charging stations. Currently, these facilities operate at utilisation rates of less than 2%, far below the 8-10% needed to achieve profitability and scalability by the end of the decade.
One of the primary barriers is the electricity tariff structure, which imposes fixed charges regardless of energy consumption. This model, combined with low utilisation, makes it difficult for charging station operators to break even. States such as Uttar Pradesh, Delhi, and Gujarat have introduced low or no fixed tariffs, improving viability, but many other states continue to levy high fixed charges, creating obstacles.
The report emphasizes the importance of collective action from policymakers, industry stakeholders, and government authorities to drive India’s transition to clean energy and build a sustainable EV ecosystem. It identifies critical hurdles such as limited financial feasibility, power distribution issues with DISCOMs, land acquisition difficulties, operational inefficiencies, and the lack of standardisation and interoperability in EV charging systems.
To address these challenges, FICCI recommends reducing the GST on EV charging services from 18% to 5%, aligning with the EV value chain. A shift from the two-part tariff system to a single-part tariff with uniform pricing across states is also suggested to enhance financial sustainability. For promoting electric three-wheelers (E3Ws), the report advocates removing permit requirements and allowing seamless transitions from CNG to electric vehicles using the same permits.
The report proposes setting up a state-level monitoring cell with representation from industry, state, and central authorities to oversee the implementation of the EV charging infrastructure roadmap. It also calls for mandating state DISCOMs to ensure the timely establishment of public charging stations in line with Ministry of Power guidelines.
FICCI identifies 40 cities, based on their EV sales between 2015 and 2023-24, and 20 key highway stretches as priorities for scaling up public charging infrastructure. These cities are expected to see higher EV penetration in the next three to five years due to favorable policies and increased adoption rates. The selected highways, which connect these cities, account for 50% of India’s vehicular traffic, making them crucial for achieving national electrification targets.
The report underscores the necessity of coordinated efforts and timely interventions to overcome existing challenges, unlock the potential of India’s EV ecosystem, and support sustainable growth.
