India’s EV transition is underpinned by a comprehensive policy framework that includes the National Electric Mobility Mission Plan (NEMMP) 2020 and the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. These initiatives focus on reducing fossil fuel dependence, lowering greenhouse gas emissions, and bolstering domestic manufacturing while ensuring the availability of necessary infrastructure. The FAME scheme, implemented in phases since 2015, has been instrumental in creating demand for EVs, supporting the deployment of electric buses and two-wheelers, and fostering the development of charging stations. The anticipated FAME III phase will continue to expand these efforts, ensuring that India’s EV ecosystem is both sustainable and accessible. In addition to the above, the GST Council has also reduced the tax rate on EV chargers from 18% to 5% to further encourage this development.

Challenges Faced by Stakeholders in the EV Sector

Despite these initiatives by Govt of India and the promise EVs hold, significant hurdles confront the sector, such as discrepancies between the desired number of Public Charging Stations (PCS) and the actual number in operation. In its Charging Infrastructure for Electric Vehicles (EV) – the revised consolidated Guidelines & Standards, 2022, the Ministry of Power (MoP) outlined minimum targets for charging infrastructure, mandating a charging station every 25 kilometres on either side of the highways and roads as well as at least one charging station within a 3 km by 3 km grid. However, recent findings from a report by the Ministry of Heavy Industries in February 2024[1] revealed that the country has only 12,146 operational EV charging stations, a figure significantly below the number stipulated by government guidelines. Addressing this gap is crucial for facilitating the widespread adoption of EVs and realizing India’s ambitious environmental objectives.

Public-Private Partnerships: A Promising Solution

The PPP model offers a promising path for expanding EV charging networks in urban areas and promoting the electrification of commercial passenger fleets. However, despite private sector interest in investing, issues with government-run charging stations—such as system glitches and non-performing units—are causing concerns for fleet operators. Additionally, some public charging units at metro stations and fuel outlets are non-operational due to software glitches, equipment malfunctions, and power connectivity problems. The complexity of this infrastructure involves numerous stakeholders, such as land-owning agencies, charging equipment suppliers, and State DISCOMs (Distribution Companies).

Addressing the above-mentioned issues through PPPs could unlock the full potential of electric vehicle adoption in commercial fleets, fostering sustainability and reducing carbon emissions in urban environments. Industry stakeholders advocate for the utilization of government-owned spaces in major cities, suggesting that these areas could be licensed to private vendors for the building, operation, and maintenance of charging stations. This collaborative approach presents a viable solution to the current challenges faced by fleet operators.

Benefits of PPP Models

• Private Investment

PPPs can inject substantial private investment and funding, crucial for the development and expansion of EV charging infrastructure.

• Risk Sharing

Through PPPs, risks can be allocated or shared between the public and private sectors. This risk-sharing mechanism, coupled with the linking of performance rewards and penalties, may enhance operational efficiencies and maintenance standards of EV charging stations

• Lifecycle Cost Reduction

By expanding the scope of PPPs to encompass not only asset creation but also service delivery, there is potential to reduce full lifecycle costs, including construction and operating expenses in the long run.

• Flexibility

PPP models can be tailored to suit the level of commitment and expertise demonstrated by private players. This flexibility allows for the development of customized arrangements that align with the capabilities and interests of private investors, ultimately promoting greater participation and innovation in the EV charging infrastructure space.

Case Studies

Delhi’s Innovative Approach to Charging Station Deployment

The Delhi Government has recently made significant strides in the electric vehicle (EV) infrastructure domain by setting up 900 charging points across 100 locations, offering the lowest charging tariff of INR 2, making these stations the cheapest globally.[2] This remarkable achievement was orchestrated through a PPP facilitated by the State Nodal Agency (SNA), Delhi Transco Ltd.

Benefits for Private Players

The PPP model has presented several advantages to the prospective bidders:

• Land Provision

The government provided land for setting up charging stations on a revenue-sharing basis, with land parcels aggregated from various public agencies.

• Revenue Sharing

Concessionaires paid a fixed rate of INR 0.70/kWh of power sold to the site-owning agency.

• Infrastructure Costs

SNA covered the costs associated with electrical infrastructure, significantly reducing the financial burden on the private entity.

• Deferred Land Lease Fees

SNA deferred the payment of land lease fees until revenue generation commenced, mitigating initial capital outlay concerns.

Outcomes and Impact

This strategic approach effectively addresses the high initial capital investment and uncertain revenue streams, creating a conducive environment for private participation.

Ahmedabad Municipal Corporation’s Initiatives for EV Charging Infrastructure

The Ahmedabad Municipal Corporation (AMC) is working to install EV charging stations throughout the city via a PPP model. Despite issuing tenders for 81 locations, only two companies have shown interest in 27 sites, leaving 54 unclaimed. To address this, AMC plans to lease open spaces, building premises, and areas under bridges and flyovers for EV charging stations. Following feedback, AMC extended the lease period from five to ten years and extended the tender deadline and lease duration. Once approved, selected companies will have six months to install the stations and will cover electricity usage costs.

AMC’s Broader EV Strategy Includes:

• Incentives

Offering incentives for installing charging stations in older residential societies and complete vehicle tax exemptions for new EVs.

• Gujarat Electric Policy 2021

The initiative aligns with this policy, which provides subsidies ranging from INR 20,000 to INR 1.50 lakh for EVs and their charging stations.

• Regulatory Amendments

An amendment to the Comprehensive General Development Control Regulations (CGDCR) to mandate EV charging stations in new buildings is under review. This ensures residential societies undergoing redevelopment will be equipped with EV charging infrastructure, promoting sustainability.

These strategic efforts, including extended lease periods, incentives, and alignment with state policies, aim to foster a robust EV infrastructure in Ahmedabad, promoting sustainable transportation and encouraging private sector participation.

Conclusion

Indeed, a privately owned and operated charging station faces numerous hurdles including financial viability, regulatory compliance, and ongoing maintenance costs. Without governmental support these obstacles can render private initiatives financially unsustainable, ultimately jeopardising the reliability and upkeep of the station. On the other hand, publicly owned and operated charging stations appear to be extremely slow in implementation.

Overall, leveraging the strengths of both the public and private sectors through PPPs holds immense potential for driving the growth and sustainability of EV charging infrastructure in India. By harnessing private investment, sharing risks, and fostering collaboration, PPPs can play a pivotal role in accelerating the transition towards electric mobility and achieving India’s ambitious environmental and energy goals.

Additionally, measures must also be taken to have a comprehensive EV infrastructure which would not only be limited to public charging stations but also include captive charging stations, battery swapping stations, battery charging stations, and components and supplies of traction battery.