Gujarat is now preparing for a fresh EV push, this time focusing not just on sales but also on charging infrastructure, tax burden, battery manufacturing, and more attractive incentives.

The biggest challenge before the new policy will be to fix the shortcomings of the old one, not through another round of announcements, but through speedy and effective implementation. 

State Cooperation Minister Jitu Vaghani, speaking at the 65th annual general meeting of the Gujarat State Co-operative Marketing Federation Ltd (GUJCOMASOL), urged the cooperative sector to take maximum advantage of the upcoming EV policy and participate in developing a network of EV charging stations. He said EV charging stations would also be established through the cooperative sector.

What To Expect 

A senior Energy Department official told The Secretariat that the drafting process for the new EV policy was nearing completion following consultations with stakeholders. “The policy will have three key focus areas — boosting EV sales, expanding charging infrastructure, and promoting EV manufacturing,” he said. 

To make the new policy more attractive, the government is considering reducing registration costs, bringing Regional Transport Office (RTO) tax on EVs down to zero, doubling purchase subsidies, and extending subsidies to all vehicle categories instead of limiting them to two-, three- and four-wheelers.

The government is also considering amendments to the General Development Control Regulations (GDCR) to make charging facilities mandatory in new buildings. A Public-Private Partnership (PPP) model is also being planned to accelerate charging infrastructure. 

The proposed policy is expected to give a major push to EV and battery manufacturing, with the government looking to attract fresh investments in the sector through additional incentives.

 

‘Chicken-And-Egg’ Problem

Vehicle dealers say EVs and charging stations are caught in a ‘chicken-and-egg’ situation. 

Potential buyers worry about the availability of charging stations, while charging station developers are concerned about getting enough customers to make business viable. 

This is particularly important as EVs are expected to account for 30%–40% of all vehicles in India by 2030, compared to an estimated 10% currently. According to Vahan Dashboard data compiled till July this year, India’s cumulative registered EV figure is over 9.19 million. 

Gujarat has around 332,000 EVs.

Pranav Shah, a member of the Federation of Automobile Dealers Associations’ (FADA’s) governing council, said, “Hardly any charging station has reached break-even because of inadequate customer volumes. However, with EV numbers rising, the country needs substantially more charging stations.”

He stressed the need for more stations, along with highways and National Expressways, to support long-distance EV travel, with proper maintenance of existing facilities.

Developing Charging Stations

Existing petrol pumps are considered ideal locations for EV charging stations because of their strategic locations and high vehicle footfall. Oil Marketing Companies (OMCs) have already started installing charging facilities at fuel stations, and more are expected to come up.

However, adding EV charging requires petrol pumps to upgrade their electricity infrastructure. A typical four-nozzle petrol pump has a 20–30 kVA load capacity, whereas a four-output EV charging station requires around 100 kVA. 

Increasing the load involves approvals and substantial paperwork with electricity suppliers.

Following suggestions from petrol pump operators, EV charging stations are also being developed at malls, supermarkets, restaurants, and dedicated parking lots. While petrol, diesel, and CNG refuelling takes only a few minutes, an EV may require around 30 minutes for a charge.

Arvind Thakkar, Chairman of the United Petroleum Dealers Association, said, “India has around 25,000 charging stations, which need to increase to 75,000. However, simply increasing the number of stations will not be enough; their utilisation and commercial viability will also be critical.” 

Gujarat’s 2021 EV Policy had provided a 25% capital subsidy on equipment and machinery, up to ₹10 lakh per public charging station.

Charging Station Economics

Petrol pump operator Pramukh Patel said setting up a small charging station typically costs around ₹5 lakh to ₹15 lakh. “The investment can rise significantly when fast chargers are installed, but faster charging can also generate higher revenue,” he said. 

According to Patel, operators can typically earn around ₹10–₹20 per unit of electricity sold. If a station attracts around 20–30 vehicles a day, monthly earnings could range from approximately ₹50,000 to ₹1.5 lakh. 

However, he stressed that location is critical — a charging station needs a high-traffic or prime location to achieve viable utilisation.

The report card on Gujarat’s old EV policy is telling. 

According to the IEMI that came out earlier this year, Gujarat got just 37 out of 100 on promoting EV purchase and usage. Its private EV adoption score stood at 51, while commercial EV adoption scored a mere 5, meaning private adoption has been sluggish and the commercial segment is running on low battery. Gujarat scored 44 in terms of charging infrastructure development and 46 in R&D.