Context:
The Government of India has initiated inter-ministerial consultations to revise the benchmark costs for EV public charging infrastructure, a move driven by changing technology and cost structures since the last revision in 2022. This update falls under the ₹10,900-crore PM E-Drive Scheme, with ₹2,000 crore earmarked specifically for charging infrastructure subsidies.
Key Points
Cost Revision Underway
- Current benchmark costs:
- ₹1.5 lakh for two- and three-wheeler chargers
- ₹6 lakh for car chargers
- ₹24 lakh for bus and truck chargers
- The Power and Heavy Industries Ministries and Bureau of Energy Efficiency (BEE) are jointly evaluating the updated cost norms.
Drivers of Cost Change
- Small/home chargers have become more affordable due to:
- Mass production
- Domestic manufacturing
- Government incentives
- Large fast chargers, used in public and highway locations, have become costlier due to:
- Rising raw material costs (e.g., copper)
- Increased import costs (e.g., battery management systems)
Subsidy Structure & Infrastructure Targets
- Subsidy covers up to 80% of upstream costs, which include:
- Distribution transformers
- Cables
- Circuit breakers
- Civil works
- Upstream costs constitute around 60% of total infrastructure expenditure.
- Public charging stations planned under the scheme:
- 48,400 for two- and three-wheelers
- 22,100 for electric cars
- 1,800 for electric buses and trucks
Strategic Rollout Plans
- Highway corridors have been prioritized for EV truck and bus charging to reduce logistics emissions and support intercity travel.
- Location-based planning is key:
- Urban areas need multi-vehicle stations.
- Highways focus on high-capacity, long-duration chargers.
Policy Implications
- The revised cost structure will better align with market realities and ensure efficient allocation of subsidies.
- It supports India’s broader goals of:
- Reducing emissions
- Scaling EV adoption
- Strengthening last-mile and freight electrification
