The Karnataka government has canceled its plans to build 2,500 EV charging stations around the state after failing to draw any commercial bidders.
The Karnataka government has abandoned its proposal to deploy 2,500 electric vehicle (EV) charging stations around the state after numerous failed attempts to secure private sector participation. Even after six rounds of bidding, no one expressed interest in the project, which was to be constructed under the public-private partnership (PPP) paradigm.
The government has delegated responsibility for establishing 100 charging stations to BESCOM, with a budget of ₹35 crore. This decision was made official by a government order issued on June 16 in response to a report by BESCOM’s managing director, N Shivashankar.
Low Demand Outside Bengaluru is a Major Reason
According to officials, one of the primary reasons for the lack of interest is low EV adoption outside of Bengaluru. While the capital city has witnessed an increase in electric two-wheelers and cars, other sections of the state continue to have very few EV users. “Private players were hesitant to invest in smaller towns and cities. “The majority of the demand is still concentrated in Bengaluru,” said a senior energy department official.
Land and Support Issues Also to Blame
Another hurdle was locating adequate land for the stations. In many instances, local government entities and agencies did not give the necessary assistance for the project to proceed. “There were problems with land allocation, and the overall coordination wasn’t smooth,” the official said.
Past Attempts Also Unsuccessful
This is not the first time such an attempt has failed. In the previous fiscal year, the government issued a similar tender for 585 charging stations in 9 districts, but it received no response. A later tender for 605 stations in 22 districts received offers in only 4 sites. Karnataka now has over 5,800 charging outlets, with over 4,000 of them placed in Bengaluru.
Government Shifts Focus to BESCOM
With no corporate associates stepping forward, the government has nudged BESCOM (Bangalore Electricity Supply Company Limited) to take over the project. BESCOM plans to install 100 new EV charging stations using its cash in a ₹35 million project. This strategy is expected to focus mostly on Bengaluru and a few other major areas where EV charging demand is more stable.
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