Govt to revise EV charging costs under e-drive scheme

Mint

01-05-2025

The Centre has started inter-ministerial consultations to revise the cost of electric vehicle (EV) charging infrastructure under the PM E-drive scheme, the first such revision in nearly three years, two people aware of the matter said.
'The last such revision was done in 2022 by the Union power ministry. Since then, there have been significant technology developments, and the cost structure of large and small chargers has changed now," said one of the persons cited above, on the condition of anonymity.
Power and heavy industries ministries, along with the Bureau of Energy Efficiency (BEE) are part of these consultations that will help shape India's green mobility roadmap.
Currently, the benchmark costs for each charging station for electric two- and three-wheelers, cars, and buses and trucks are
₹
1.5 lakh,
₹
6 lakh, and
₹
24 lakh respectively, as per the draft guidelines for EV public charging stations under the PM e-drive scheme.
The government has earmarked about
₹
2,000 crore–nearly a fifth of the
₹
10,900-crore PM E-drive scheme's outlay–to subsidise EV charging infrastructure, covering up to 80% of the upstream costs.
Upstream costs, which include components such as distribution transformers, low and high-tension cables, circuit breakers, protection equipment, as well as civil work, account for about 60% of the cost of setting up a charging station, per a heavy industries ministry statement in March 2023.
Under the PM E-drive scheme, the government plans to set up 22,100 public charging stations for electric cars; 48,400 stations for electric bikes, scooters, and three-wheelers; and 1,800 stations for electric trucks and buses, the scheme's draft guidelines for EV public charging stations said.
While costs have decreased for smaller household EV chargers, according to industry experts, chargers with larger capacity have become more expensive over the last two years.
Also Read:
Centre aims green logistics at ports, eyes setting up EV charging infra
Akshit Bansal, founder and chief executive officer of EV charger maker Statiq, said the costs for small household-based EV chargers have decreased in the last two years. Increased demand, technological advancements, and competition among manufacturers have dragged down prices, making home charging solutions more accessible for consumers, he said.
'In India, basic AC (alternating current) home chargers now typically range from
₹
15,000 to
₹
30,000, with more advanced models priced higher but still more affordable than before. Government incentives and subsidies in several states have further reduced the effective cost for homeowners," he said.
Fast chargers, which are used in public charging stations, cost between
₹
2 lakh and
₹
50 lakh, depending on the type, capacity, and location, according to Bansal.
'The choice of charging station type depends on location and expected EV traffic. Urban hotspots may require stations catering to both two-wheelers and four-wheelers, while highway stations are better suited for four-wheelers," he said.
Mint
reported earlier on 9 April that
the government had identified priority highways
for setting up EV public charging infrastructure for electric trucks and buses, including the routes used most commonly in freight and cargo movement as well as those facilitating busy intercity travel.
Setting up EV charging infrastructure is critical as it helps reduce range anxiety among consumers. Range anxiety refers to the consumer's skepticism in shifting to an EV due to the limited range of the vehicle's battery.
The cost of public charging infrastructure has risen considerably in the past few years, according to Abhijeet Sinha, program director for National Highways for EVs (NHEV), a pilot testing program for building EV charging infrastructure across national highways. "The cost of raw material such as copper used in crucial wiring of the EV charger has risen considerably. In some cases, battery management systems imported from certain countries such as the US have also become more expensive," he told Mint.
Sinha added that focusing on productivity of the charger instead of pricing could yield better results for consumers, and increase the adoption of green mobility in the country.
Location planning and land allocation is also a crucial part of setting up charging infrastructure, a Niti Aayog and power ministry report noted in February 2023. The PM E-drive scheme's draft guidelines for EV public charging stations said an area of at least 40-60 square meters is needed for public fast charging stations in cities, while a much larger area of at least 250-300 square meters is needed for the same stations on highways.
As per information received from the ministry of power, 25,202 EV charging stations were installed in the country as on 17 December 2024, the heavy industries ministry said in a parliamentary disclosure on 1 April this year.
In comparison, there were over 85,000 petrol stations in the country as on 1 January, 2023, according to a Lok Sabha disclosure by the union ministry of petroleum and natural gas.
Deployment of EV chargers should be coordinated with power grid developments to ensure that new connections are consistent with wider grid-planning horizon, the International Energy Agency (IEA) said in its Global EV Outlook 2024.
'When not managed appropriately, charging can lead to a surge in peak demand, meaning that it is increasingly important to ensure that transmission and distribution grids are appropriately sized and equipped," the IEA report said.
The IEA also estimated a fourteen-fold growth in the number of private EV chargers, and a six-fold rise in the number of public EV chargers by 2035, as per the report.
Also read |
Govt rushes to find demand for electric trucks under PM E-Drive after bare FY25