FICCI Report Calls For Rs 16,000-Crore Capex To Meet EV Charging Demand By 2030

To keep pace with the growing demand for public charging for electric vehicles and to achieve the mission of over 30% electrification by 2030, India needs a capital expenditure of approximately Rs 16,000 crore, according to a report released on Monday.

According to the FICCI report 'Electric Vehicle Public Charging Infrastructure: 2030 Roadmap', the current financial viability for public charging stations in India remains low with utilisation rates of less than 2%.

For profitability and to achieve scalability, “we need to aim for an 8-10% utilisation by 2030”, the report added.

“For instance, the current cost structure of electricity tariffs with fixed charges regardless of energy consumption combined with low utilisation at public charging stations is making it challenging to achieve break even. States like UP, Delhi and Gujarat have no/low fixed tariffs but there are other states where fixed tariffs are high, thereby challenging the viability,' FICCI said.

The report pointed out that India's transition towards clean energy and sustainability can be achieved only with participation of key stakeholders, including policymakers, industry players, and government bodies.

If the country wants to scale up public charging infrastructure, it needs to address five key challenges. According to the report, these include limited financial viability, discom or power-related issues, land-related issues, operational challenges, and standardisation, and inter-operability.

Among others, the association’s report also lobbied for standardisation of GST rates for EV charging services. It suggests bringing them down from 18% to 5%, in line with taxation across the EV value chain.

It also wants the two-part tariff to be done away with and instead suggested bringing in a single-part tariff with consistent pricing across all the states in the country.

(With inputs from PTI.)