Govt’s Rs 2,000-Crore PM E-DRIVE Scheme Covers Less Than 2% of 2030 EV Charging Requirement: IEEFA

New Delhi, Sep 19 (KNN) India's Rs 2,000-crore public electric vehicle (EV) charging allocation under the PM E-DRIVE scheme could support only about 18,811 charging points, less than 2 per cent of the estimated 1.32 million chargers required to support the country's 30 per cent EV adoption vision by 2030, according to the Institute for Energy Economics and Financial Analysis (IEEFA).

The estimate assumes a 100 per cent subsidy for both upstream infrastructure and charging equipment. IEEFA said grid upgrades can account for up to 50 per cent of the cost of setting up a public charging station, adding to the financial pressure on charging point operators facing low utilisation.

Charger Reliability Emerges as Key Challenge

The findings come as India's public charging network has expanded more than tenfold, from 5,151 stations in 2022 to 52,718 by July 2026. Annual EV sales have also increased from around 50,000 in 2016 to about 2.5 million in FY26, while EV sales rose 63.2 per cent year-on-year to 307,752 units in July 2026.

In its report, ‘Improving the EV Charging Experience in India: Beyond Charger Deployment’, IEEFA said the next phase of government support should focus on charger performance and reliability rather than installation numbers alone.

A 2024 IEEFA study found nearly 84 per cent of chargers examined across four Delhi regions were non-functional.

The report recommended linking subsidies, land concessions and viability-gap funding to charger uptime, successful charging sessions and maximum timelines for fault resolution.

IEEFA Seeks Lower Charging Costs

IEEFA recommended reducing GST on public EV charging from 18 per cent to 5 per cent, in line with the GST rate on EV purchases. It also proposed cutting GST on battery-swapping services from 18 per cent to 5 per cent.

The report said concessional long-term financing should be provided for grid upgrades, with such costs financed separately rather than placing the entire burden on charging operators.

Unified Payments, Right to Charge

The report called for a unified payment system across charging networks to simplify access for EV users and improve interoperability.

It also proposed a ‘right to charge’ for residents with designated parking spaces in multi-household buildings, subject to safety and technical standards.

IEEFA further recommended time-of-use electricity tariffs to encourage charging during off-peak and renewable-rich periods.

The report said India's next phase of EV infrastructure development should therefore focus simultaneously on reliable chargers, easier payments, home-charging access, lower charging costs and adequate grid capacity.

(KNN Bureau)