Government to rope in nodal state agencies for establishing electric vehicle infrastructure

A customs duty exemption on select electric vehicle parts is a step that would incentivise the purchase of EVs. This, the FM said, has been done to facilitate a shift from fossil fuels to environment friendly fuels. (Image: PTI)

According to a report by The Economic Times, the government is in process of building a policy to build more vehicle charging infrastructure.

Government agencies such as NTPC, Power Grid Corporation, state power discoms and some municipal authorities will identify suitable locations and set up vehicle charging infrastructures in the selected cities and highways within a year.

About Rs 1,050 crore for 4,200 public charging points in cities and major highways has been proposed along with concessional land and local authorities' support by the government.

According to a government official quoted in the report, private entities like Tata Motors, Mahindra & Mahindra, Fortum, Ola and Uber are keen on entering the e-vehicle business, but that will be possible only when the sales of e-vehicles pick up.

The official added, "This intervention by the government is required to break the chicken and egg situation where electric vehicle sales are not picking up due to lack of charging points and charging points are not coming up as there are no vehicle sales. PSUs (public sector units) are likely to be asked to set up the required initial infrastructure irrespective of the traffic estimations." 

Earlier in April, the power ministry had clarified that setting up of charging stations for electric vehicles would not require a separate licence under the Electricity Act of 2003.

India looks to convert 40 percent of its vehicles electric by 2030.