How to Establish an EV Charging Business in India: Procedures, Costs, and Government Regulations

The Indian Government has been actively promoting the adoption of Electric Vehicles (EVs). However, a significant hurdle faced by EV manufacturers is the sparse EV charging infrastructure nationwide. Consequently, setting up an EV charging station presents a promising opportunity in India. These stations provide the necessary electric charging points for EVs.

Individuals or entities can establish EV charging stations business in parking lots or along roads to offer charging services for EVs. Learn more about setting up an EV charging Business in India, including licensing requirements and associated costs.

Recent Developments

The Interim Budget 2024–25 reveals the government’s commitment to bolstering and expanding the e-vehicle ecosystem by backing manufacturing and charging infrastructure.

Acquiring a License for an EV Charging Station

The Indian government has declared that anyone across India can set up an EV charging station without needing a license. However, adherence to the technical standards and guidelines of the Power Ministry is mandatory.

Government Policies Regarding EV Charging Stations

The Central Government has issued specific guidelines concerning the establishment of EV charging stations in India:

• Mandatory placement of an EV charging station every 3 km in urban areas, every 100 km on highways for heavy-duty vehicles, and every 25 km on highways
• Licensing for setting up an EV charging business is exempt for individuals in India.
• Adherence to the guidelines set by the Power Ministry of India is required for those establishing EV charging stations.

Guidelines for EV Charging Stations

The Ministry of Power has released comprehensive guidelines and standards for EV charging infrastructure, including phased installation plans for major cities and megacities. Key points from these guidelines include:

• EV users can charge their vehicles at their workplaces and residences using existing electricity connections.
• State governments will determine the maximum service charges allowed at charging stations.
• Tariffs at public EV charging stations will follow a single-part tariff structure until March 31, 2025.
• Public charging stations can source electricity from power generation companies via open access.
• Electricity boards must provide connections for new EV charging stations within specified timeframes based on location.

Setting Up an EV Charging Station in India

Key Steps:

Charger Selection: Choose the appropriate charger type based on location and user preferences.

Policy Review: Understand state-specific EV charging policies to ensure a cost-effective power supply.

Partnership: Collaborate with reliable partners to install, promote, and operate the charging station.

Infrastructure Setup: Essential requirements include substations, transformers, designated parking spaces, approved chargers, and security measures.

The Indian government has taken measures to reduce the setup costs of EV charging stations, including waiving the licensing requirement. Costs typically range from Rs.1 lakh to Rs.50 lakh, covering infrastructure and charger expenses.

Franchising Opportunities

Establishing an EV charging business as a franchise is a lucrative venture requiring investments between Rs.1 lakh to 10 lakh. Key players offering franchise opportunities include Tata Power, Charge+Zone, PlugNGO, and others.

Functioning of Public EV Charging Stations

Public EV charging stations provide electricity for EVs, allowing users to charge their vehicles conveniently. These stations derive power from various sources and distribute it to EVs through charging ports.

India’s Largest EV Charging Station

Located on the Delhi-Jaipur National Highway in Gurugram, India’s largest EV charging station features 121 charging points for four-wheelers. This station significantly enhances the country’s EV charging infrastructure.

Subsidies on EV Charging Stations

Under the FAME India Scheme Phase II, the government has allocated Rs.800 crores to PSU Oil Marketing Companies for setting up over 7,400 public fast charging stations across India. These subsidies aim to accelerate the adoption of EVs and bolster the charging infrastructure.

With the addition of thousands of new charging stations, the EV charging ecosystem in India is set to experience substantial growth, catering to various types of electric vehicles and enhancing inter-city travel convenience.

Membership at a Glance

IID Membership

Membership offers a pathway to initiate business ventures by providing access to a network of resources, expertise, and opportunities. By joining a membership program or organization, entrepreneurs gain support, guidance, and connections that can accelerate business growth and success. Whether it’s through mentorship, workshops, or networking events, membership provides invaluable support for aspiring business owners to navigate the challenges of starting and running a successful enterprise.