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

To meet the growing demand for public charging of electric vehicles and achieve the mission of over 30% electrification by 2030, India will need a capital investment of around Rs 16,000 crore, according to a report released on Monday. It is said that it is necessary.

According to FICCI’s report, ‘Public Charging Infrastructure for Electric Vehicles: Roadmap to 2030’, the current financial viability of public charging stations in India remains low, with utilization rates below 2%.

To achieve profitability and scalability, “we need to aim for utilization rates of 8-10% by 2030,” the report added.

“For example, the current cost structure of electricity tariffs, which are fixed irrespective of energy consumption, coupled with low utilization of public charging stations, makes it difficult to achieve break-even.” , Delhi, Gujarat and other states have no or low fixed tariffs, while some states have high fixed tariffs, posing challenges to viability,” FICCI said.

The report pointed out that India’s transition to clean energy and sustainability can only be achieved with the participation of key stakeholders such as policy makers, industry players and government agencies.

If the country wants to expand its public charging infrastructure, five key challenges must be addressed. According to the report, these include limited financial viability, discom or power-related issues, land-related issues, operational issues, standardization and interoperability.

Among other things, the association’s report also calls for standardization of GST rates for EV charging services. It proposes to reduce the tax rate from 18% to 5% in line with the taxation of the entire EV value chain.

It also wants to eliminate the two-part toll system and proposes instead a one-part toll system with consistent pricing across all states in the country.

(With input from PTI.)