Centre To Reset EV Charging Cost To Boost PM E-Drive

This is the first time the Centre is revising the cost structure in the three years of existence of the PM E-drive scheme. This comprehensive review will include detailed consultations with the ministries of power and heavy industries and the Bureau of Energy Efficiency (BEE). The last update was done in 2022.

Since then, there have been rapid changes in technological development for both small and large EV chargers. As a result, the prices of these chargers have also changed. Government officials point out that the revision has been due for some time and that this will impact India’s broader green mobility strategy.

Cost Of Chargers Under PM E-Drive

The current draft guidelines of the PM E-drive stipulate benchmark costs for public charging stations at Rs 1.5 lakh for two and three-wheelers, Rs 6 lakh for passenger cars, and Rs 24 lakh for buses and trucks.

The PM E-drive has a total outlay of Rs 10,900 crore. Around 20 per cent of that, Rs 2,000 crore, will be earmarked for subsidising up to 80 per cent of infrastructure costs for public charging stations.

There are, of course, upstream costs involved, including transformers, cables, and civil works. These costs take up roughly 60 per cent of the total expenditure of setting up a charging station.

According to the latest available data, India managed to create 25,202 EV charging stations by the end of 2024. In contrast, the country has a network of more than 85,000 petrol stations.

The target of the PM E-drive scheme is to establish 22,100 charging stations for EVs, 48,400 stations for two and three-wheelers, and 1,800 for buses and trucks by 2026.

Price Of Home Chargers Down, Public Chargers Costlier 

Meanwhile, the electric charger market has undergone a significant change. As both demand and competition have gone up for small home-based chargers, their prices have plummeted.

On the other hand, the prices of high-capacity public chargers have increased in the last two years due to high global raw material prices and greater advanced technology requirements.

Basic home alternating current (AC) chargers are now priced in the range of Rs 15,000 to Rs 30,000. In some states, the prices are even lower due to specific state government subsidies. The public fast electric mobility chargers are priced between Rs 2 lakh and Rs 50 lakh, depending on the location and capacity.

Range Anxiety & Charging Infra

The central government also wants to address the concerns of EV drivers about charging station availability everywhere and the limited battery range, leading to “range anxiety”.

Smooth integration of the power grids in the charging infrastructure and proper implementation are two necessary conditions to address “range anxiety”. As EV adoption is likely to surge soon, the electricity infrastructure should build the capacity to cope with that.

According to the International Energy Agency (IEA) estimates, India is likely to witness a six-fold increase in public EV chargers by 2035.

In light of that projection, the current round of revision in the costs of home chargers and public charging stations is very crucial. Robust infrastructure and regulatory coordination will decide how fast India can transition to an EV-based mobility system.