Pushing EV adoption through charging infrastructure

India is set the ambitious target of 30% electric vehicle (EV) sales by 2030 to decarbonise its transport sector. Vehicle registration data reveals that the country has a long way to go to achieve the goal. Charging infrastructure continues to be the elephant in the room, slowing down the pace of EV adoption. Data from the Vahan portal of the Ministry of Road Transport and Highways shows that the EV adoption rate is only 1.01% in the case of two-wheelers and just 0.32% in the case of four-wheelers. The Ministry of Heavy Industries notified several new schemes this year to promote EV adoption and infrastructure development in the country. Rolling out of new EV buses and promotion of manufacturing of electric passenger cars dominated these initiatives even though public charging stations were also included. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, with an outlay of Rs 10,900 crore notified in September, is a two-year scheme aimed at supporting EVs, public charging stations, and upgradation of testing agencies. The PM e-Bus Sewa-Payment Security Mechanism is another new scheme notified in October that aims to support the deployment of more than 38,000 electric buses. The objective of the scheme is to provide payment security to e-bus operators in case of default by public transport authorities hiring their services for decarbonising public transport. Earlier in March, the government notified the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India to promote the manufacturing of electric cars in the country. As the high upfront cost of EVs has been posing hurdles in their adoption, the manufacturing of vehicles that will be available at an affordable price can play a crucial role in influencing car owners’ decisions to shift to the environment-friendly vehicle. Bringing down the cost of vehicles alone, however, cannot be an incentive for buying EVs if the range anxieties continue for individual buyers. Nevertheless, the deployment of more electric buses on city roads and in urban areas can improve the efficiency of public transport and encourage more people to use it for daily commuting. A direct benefit of efficient, environmentally friendly bus services in a city is that they can prevent more personal cars running on fossil fuels from hitting the roads, which in turn can significantly reduce vehicular pollution besides moderating traffic congestion. Yet, such awareness of the positive environmental impact of EVs could not make the two phases of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme attractive for individual car owners to avail themselves of the incentives for the dearth of adequate charging infrastructure. Under FAME phase II, Rs 3000 crore was allocated for e-buses and only Rs. 180 crore for charging infrastructure. The “Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024” issued by the Ministry of Power in September seeks to develop a robust charging network across the country but initially prioritises the essential locations. Other objectives include increasing the viability of charging stations by facilitating public land at promotional rates, expeditious approval of electrical connections, and standardising pricing of power supply, which can be expected to attract private investments for the establishment of more charging stations. The guidelines also aim to prepare the electricity grid to handle the increased demand from EV charging. The establishment of charging stations and their operation being a de-licensed activity, any entity is free to establish a charging infrastructure by adhering to the guidelines. The Guidelines note that the combination of high land rent and uncertain future revenue flow can make the setting up of public charging stations financially unattractive and, therefore, provide for offering government land at a subsidised rate to a government/public entity on a revenue-sharing basis. It also provides for the adoption of the revenue-sharing model by the public land-owning agency for providing land to a private entity for the installation of public charging infrastructure. The target for charging infrastructure for 2030 is one charging station within a 1 sq. km grid in urban areas, at every 20 km on both sides of highways, motorways, and major roads, and a fast-charging station for long-range EVs and heavy-duty vehicles like buses and trucks at every 100 km. It also allows the establishment of any additional charging stations, both standard and fast charging, and lists group housing societies, including residential societies, shopping malls, office complexes, restaurants and hotels, educational institutions, hospitals, etc. As it takes long to charge EVs, these public places having adequate space is crucial to ensure their optimal utilisation for commercial viability. Land being a state subject, states have a crucial role to make smooth implementation of these guidelines and remove any bottlenecks by initiating necessary amendments to existing land laws. Inter-ministerial coordination, increased allocation for charging infrastructure, and wider publicity of the guidelines and various schemes for EV adoption are essential to ensure that the country’s EV promotion policies can bring transformative changes and do not remain on paper.