The Ministry of Heavy Industries (MHI) has issued draft guidelines for setting up electric vehicle (EV) charging infrastructure under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.

Sources in the MHI told businessline that the draft guidelines have been shared with the stakeholders for their inputs/ comments.

The scheme envisages installation of ample public charging infrastructure for various vehicle categories, including over 22,000 chargers for electric four wheelers (e-4Ws) and 1,800 chargers for e-buses. Besides this, the scheme has made a provision to set up charging infrastructure for light EVs, including electric two-wheelers (e-2Ws) and electric three-wheelers (e-3Ws).

The government aims to have active participation and involvement of various stakeholders including charge point operators, EV charger OEMs, State governments, urban local bodies (ULBs), government agencies, central-level Ministries, Discoms, Highway authorities and various central public sector enterprises (CPSEs).

Subsidy on upstream infrastructure

The PM E-DRIVE scheme, with an outlay of ₹2,000 crore for setting up public fast charging stations, intends to extend up to 80 per cent subsidy on upstream infrastructure (behind the meter infrastructure),

However, in exceptional cases, the Ministry may also consider higher funding to the extent of 100 per cent of cost (including upstream power infrastructure) of the project, it said.

According to the draft guidelines, central-level Ministries including Ministry of Petroleum and Natural Gas (MoPNG), Ministry of Road Transport and Highways (MoRTH), Ministry of Telecommunications, Ministry of Tourism, Ministry of Health and Family Welfare, Ministry of Railways, Ministry of Civil Aviation, Ministry of Ports, and Shipping and Waterways..

“State governments and Central Ministries are also encouraged to carry out feasibility studies to identify suitable locations for EV PCS. These site assessments will help identify potential locations based on traffic patterns, proximity to major commercial spaces, land accessibility, sufficient power supply, and potential for grid upgrades to support the additional load,” the MHI said in the draft guidelines.

technical committee under the chairmanship of an Additional/ Joint Secretary, MHI, with members from Niti Aayog, Ministry of Power, Automotive Research Association of India (ARAI), will shortlist the proposals and take the decisions. Further, recommendations of the technical committee will be placed before the Project Implementation and Sanctioning Committee (PISC) and with the approval of PISC, the proposal will be processed in the MHI for approval by the competent authority in consultation with Internal Finance Wing.

“After approval by the competent authority, the participating State government/ Central Ministry will be informed about the total number of sanctioned charging stations, with a request to initiate the tendering process,” it said.

Calculation of incentive

The MHI further said the applicable incentive payable to a State government and Central Ministries will be calculated based on the price per kW of the benchmark upstream cost established by Bureau of Energy Efficiency (BEE), as revised from time to time.

Once the incentive is finalised and communicated, MHI will release it in three instalments – 30 per cent of the total amount after the issuance of tender as mobilisation advance, 40 per cent after deployment of EVSEs as per bid documents, and the remaining 30 per cent after successful commercial operation of charging stations.

“This amount will be exclusively used for reimbursement of the upstream infrastructure cost based on the type of charging station. The applicable incentive amount will be released to the ‘tender inviting authority’. However, the Upstream Infrastructure (assets up to the meter) will belong to the relevant Discom in all circumstances,” the MHI added.

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