Capex worth ₹16,000cr needed to meet EV-charging demand by 2030
What's the story
India needs ₹16,000 crore in capital expenditure to cater to the increasing demand for public electric vehicle (EV) charging by 2030, a Federation of Indian Chambers of Commerce & Industry (FICCI) report has said.
The report, "Electric Vehicle Public Charging Infrastructure: 2030 Roadmap," states that current utilization rates for public charging stations are less than 2%.
To become profitable and scalable, they must rise to 8-10% by 2030.
Hurdles identified
Challenges to financial viability of public charging stations
The FICCI report highlights a number of challenges that are currently impeding the financial viability of public charging stations.
These include high fixed electricity tariffs in some states and low utilization rates.
While states like Uttar Pradesh, Delhi, and Gujarat have low or no fixed tariffs, others face high fixed charges.
The report requests policymakers, industry players, and government bodies to support India's transition to clean energy.
Proposed solutions
Solutions to boost public charging infrastructure
The FICCI report details five major challenges that must be addressed to scale up public charging infrastructure.
These are limited financial viability, power-related issues, land-related problems, operational challenges, and standardization and interoperability.
The report recommends lowering GST rates for EV charging services from 18% to 5%, to match the EV value chain's taxation.
It also recommends moving from a two-part tariff system to a single-part tariff with consistent pricing across states.
E3W promotion
Report recommends measures to promote electric 3-wheeler adoption
To encourage electric three-wheeler (E3W) adoption, the FICCI report recommends removing permit requirements for E3W purchases and allowing existing permits to shift from CNG three-wheelers to E3Ws.
It recommends setting up a state-level cell with representatives from industry stakeholders and authorities, to monitor the implementation of the charging infrastructure roadmap.
The report also calls for the Ministry of Power's guidelines on EV charging infrastructure installation and operation to be mandated for state distribution companies (discoms).
Infrastructure prioritization
FICCI report prioritizes infrastructure scaling in top-40 cities
The FICCI report prioritizes scaling up infrastructure in the top 40 cities (based on EV sales data from 2015-2023-24) and along 20 highway stretches.
These cities are likely to witness higher EV penetration in the next three to five years owing to favorable policies.
The identified highways constitute 50% of vehicular traffic connecting these priority cities.
This strategic focus will support India's ambitious goal of over 30% vehicular electrification by 2030.