December 17, 2024 | New Delhi
A recent FICCI report titled “Electric Vehicle Public Charging Infrastructure: 2030 Roadmap” highlights that India needs an estimated ₹16,000 crore in capital expenditure to scale public EV charging infrastructure and meet its electrification goals for 2030. The report addresses key challenges and offers recommendations to create a financially viable and scalable charging ecosystem.
Key Challenges Identified
- Low Utilisation Rates:
- Current utilisation of public charging stations is less than 2%, making profitability challenging.
- The report suggests aiming for 8-10% utilisation rates by 2030 to ensure financial sustainability.
- Electricity Tariff Structure:
- Fixed tariff systems impose high costs, impacting the financial viability of charging stations.
- States like Uttar Pradesh, Delhi, and Gujarat have implemented low or no fixed tariffs, but others still face higher charges.
- Core Barriers:
- Financial viability.
- Power-related issues with DISCOMs.
- Land acquisition problems.
- Operational difficulties.
- Lack of standardisation.
FICCI’s Recommendations
- Tax Reductions:
- Reduce GST on EV charging services from 18% to 5%, aligning with other EV value chain segments.
- Uniform Tariffs:
- Shift to a single-part tariff system with consistent pricing across all states.
- DISCOM Accountability:
- Mandate state DISCOMs to ensure timely installation of public charging stations as per Ministry of Power guidelines.
- Prioritised Expansion:
- Focus on 40 cities and 20 highways, identified as key regions for EV penetration.
- Electric Three-Wheelers (E3W):
- Promote E3W adoption by removing permit requirements or allowing existing CNG permits to shift to E3Ws.
- State Monitoring Cells:
- Establish state-level monitoring teams comprising industry players and government authorities to oversee implementation.
Priority Regions for Growth
- 40 Cities: Areas with higher EV adoption rates (2015–2024) and expected to lead penetration in the next 3–5 years.
- 20 Highways: Key routes connecting priority cities, accounting for 50% of vehicular traffic.
Why It Matters
India’s transition to sustainable transportation hinges on robust charging infrastructure. The recommendations from FICCI aim to address current challenges and pave the way for a financially viable and scalable EV ecosystem. Immediate policy interventions and coordinated efforts are essential to meet the 2030 goals.
