SUMMARY
We would give subsidy to firms setting up EV charging infrastructure to pay the discoms or utilities setting up upstream infrastructure: Union Power Secretary
Currently, it costs power distribution companies around INR 5-6 Lakh to set up upstream infrastructure like transformers to provide electricity supply to EV charging stations
Under the current phase-II of the FAME policy, introduced in April 2019, INR 1,000 Cr is allocated for development of EV charging infrastructure
The Centre is mulling re-drafting its ambitious Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) scheme to include subsidies for firms that are setting up EV charging infrastructure, Union Power Secretary Alok Kumar said at an event on Thursday (September 15).
Currently, it costs power distribution companies (discoms) around INR 5-6 Lakh to set up upstream infrastructure like transformers to provide electricity supply to EV charging stations, Kumar explained to the reporters on the sidelines of INSIGHT2022 conference.
“We would give subsidy to firms setting up EV charging infrastructure to pay the discoms or utilities setting up upstream infrastructure,” he said, adding that a subsidy of around INR 4-5 Lakh will be provided to set up 200-KW charging infrastructure for EVs.
Under the current phase-II of the FAME policy, introduced in April 2019, INR 1,000 Cr is allocated for the development of EV charging infrastructure in the country. Overall, FAME-II has an outlay of INR 10,000 Cr to incentivise adoption of EVs by providing upfront subsidies for various types of EVs.
The government has sanctioned setting up of 2,877 EV charging stations in 68 cities across 25 states and union territories under FAME-II.
However, as of July 1, only 50 charging stations were installed under the policy, while the total budget utilisation under the scheme stood at about INR 2,099 Cr as of June 30 this year, according to the Ministry of Heavy Industries’ data.
Last month, it was also reported that the FAME-II scheme is undergoing changes to fix loopholes in the ways EV original equipment manufacturers (OEMs) avail incentives under the scheme.
While the Indian government has set up aggressive goals to promote the adoption of EVs in the country, there is still a lot to be done on the charging infrastructure side.
Meanwhile, speaking about the growing demand for EVs in India at the INSIGHT2022 conference, Union Transport Minister Nitin Gadkari said, “Today, the situation is that there is a waiting list for a year for electric four-wheelers. There are 250 manufacturers who are making electric two-wheelers.”
Speaking about the importance of higher penetration of EVs in the public and heavy commercial vehicle segment, Gadkari said that he plans to make an “e-road” from Delhi to Jaipur and launch an electric truck.
“Today, in public transport if you can use electricity, it is going to reduce not only pollution but it is going to reduce our import bill,” Gadkari added.
Earlier this week, he also said that within two years the cost of petrol two-wheeler and EV (two-wheelers) can become the same.
As per a McKinsey & Company report, the contribution of EVs in new two-wheeler and three-wheeler vehicle sales is expected to rise to 50% and 70%, respectively, by 2030 in the country. The report also noted that the electrification of passenger vehicles and heavy commercial vehicles could be more gradual in comparison to the two- and three-wheeler EVs.
