The FICCI report unveils that India requires ₹16,000 crore for capital expenditure to cover public demand for EV charging infrastructure by 2030.
India indeed stands today at a very crucial point about EVs. Quite an alarming report on the Indian economy was released recently by the Federation of Indian Chambers of Commerce and Industry (FICCI) and, according to the study, indeed, this nation will require a massive expenditure worth ₹16,000 crore to meet the upcoming public charging requirement for electric vehicles by the year 2030. The report mentioned that this investment could only fill that void to create the EV charging infrastructure that would support the rise in the number of electric vehicles on the road and would ultimately help the government realise its target of over 30 per cent electrification within the same timeframe.
Priorities-The Key
It is a fine suggestion relating to resource maximisation, The top 40 cities out of 700 analysed in regard to their figures on EV sales between 2015 and 2023-24: cities should be prioritised because they would be expected to see the most growth in electric vehicle (EV) adoption driven by encouraging state policies and heightened sell-through levels in the coming three to five years. Also, even if only 20 stretches of highway directly link the cities, they are expected to account for much traffic and integrate charging.
Snapshot of Cities
From the identified 40 major cities, Ahmedabad, Bengaluru, Chennai, Goa, Indore, Jaipur, Ludhiana, Kolkata, Mumbai, Lucknow, Udaipur, and Visakhapatnam were further identified. These areas would ensure that crucial charging stations would be strategically located to promote convenience towards a much better user experience, further establishing the user’s mindset toward switching to electric vehicles.
Financial Viability Issues
Despite the growing EV Indian market, the public charging stations at present have very low financial viability, with site utilisation rates hovering below 2%. The FICCI report has also highlighted the need for utilisation levels to rise between 8% and 10% by the year 2030 to get into the profitability and scalability levels, which is of significant concern. Many charging stations, because of high infrastructure costs and low usage, are not able to even break-even.
Operational Challenges
Several operational constraints block the establishment of effective EV charging infrastructure. Among them are unreliable power supply, very high electricity tariffs with fixed rates irrespective of consumption, and low availability of common protocols that enable interoperability between various charging infrastructures. The report mentions that states such as UP, Delhi, and Gujarat have lower fixed tariffs that would enable the charging stations to have better financial conditions. The other states, however, have high fixed charges and make the situation much tougher for profitability reasons.
Suggestions for Improvements
According to this recommendation of FICCI, all relevant stakeholders should come together and unite efforts between policymakers, industry players, and government agencies. It invokes a common charging framework for all states based upon the common recent guidelines of the Ministry of Power.
Working Together
India must work together on all fronts in showing clean energy and sustainability transition. The report suggests creating a state-level cell that comprises both industry stakeholders and government authorities in effectively monitoring and implementing the vision roadmap created for motoring charging infrastructure.
The FICCI report is a call to wake up India on its march toward becoming a stronghold of electric vehicles. Rajasthan seems to have set the stage for an estimated capex requirement of ₹16,000 crore to be delivered by 2030 for priority cities while trying to address financial and operational issues critical in scaling public charging infrastructure. India, which aspires to achieve electrification, will require timely investments and strategic planning to ensure that the whole nation has a robust and accessible EV ecosystem.
Also Read
Hyundai to Launch Creta EV on 17 January Aiming to Enhance Electric SUV Sales in India
About The Author
