Steering Toward a Sustainable Future: India's EV Public Charging Roadmap 2030 The report identifies 40 priority cities and 20 key highway stretches that could serve as the backbone of India's public EV charging infrastructure.
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India is steering toward a sustainable future with ambitious goals for electrification in its transportation sector. Achieving over 30 per cent electrification by 2030 will require an investment of INR 16,000 crore in capital expenditure for public charging infrastructure, as per the FICCI EV Public Charging Infrastructure Roadmap 2030 report. This milestone demands a focused and strategic approach to overcome current financial and operational barriers while addressing the challenges of scale and profitability.
The report identifies 40 priority cities and 20 key highway stretches that could serve as the backbone of India's public EV charging infrastructure. These cities, chosen based on EV sales data from 2015 to 2023-24, are projected to witness higher EV adoption rates in the next 3-5 years due to favorable state policies and growing consumer interest. The identified highway stretches, which account for half of India's vehicular traffic, provide critical connectivity and could significantly enhance the efficiency and usability of charging networks.
This prioritization is vital as it focuses efforts on regions with the most immediate potential for impact, laying a scalable foundation for nationwide infrastructure growth.
Policies driving electrification
Government initiatives are playing a pivotal role in accelerating EV adoption. Following the expiration of the FAME II scheme in FY 2024, the government introduced the PM E-DRIVE scheme, offering substantial incentives to make EVs more affordable. Highlights include incentives of INR 5,000/kWh for electric two-wheelers (E2W) and three-wheelers (E3W), and INR 10,000/kWh for e-buses.
A GST rate of 5 per cent on EVs, compared to 28-50 per cent for internal combustion engine (ICE) vehicles. Another is the financial aid to promote domestic production of lithium-ion batteries and EV components, with an outlay of INR 18,000 crore for local cell manufacturing.
State-level incentives vary widely, from waived fees and preferential electricity rates to infrastructure subsidies and low-interest loans. These measures collectively enhance EV affordability, while higher taxes on imports encourage local manufacturing, bolstering the "Make in India" initiative.
Challenges in scaling charging infrastructure
Despite significant policy support, financial viability for public charging stations remains a pressing issue. Utilization rates at these stations currently hover below 2 per cent, far short of the 8-10 per cent needed for profitability by 2030. Comparatively, Germany has demonstrated that a utilization rate of 5-10 per cent can create a sustainable charging network, with highways achieving over 16 per cent utilization.
Operational challenges also abound. High infrastructure costs, coupled with inconsistent power supply and the lack of standardized protocols for interoperability, hinder rapid progress. The rigid electricity tariff structure, where fixed charges apply regardless of energy consumption, further strains the profitability of public charging stations. While states like Uttar Pradesh, Delhi, and Gujarat have introduced low or no fixed tariffs, many others have yet to follow suit.
To address these challenges, the report emphasizes hyper-granular planning, involving local authorities to identify high-demand hotspots for public charging stations. Collaboration across stakeholders/government bodies, policymakers, and industry players is essential to streamline efforts. For instance, the Ministry of Power's recent guidelines advocate for a uniform framework for charging infrastructure across states, which could simplify implementation and ensure consistency.
The establishment of state-level cells, comprising representatives from the central and state governments as well as industry stakeholders, is another recommendation. These cells would oversee the implementation of state-specific charging infrastructure roadmaps and ensure alignment with national goals.