Introduction

With a growing trend towards electric vehicles (“EV”), India has notified various policies to support and incentivize the production and use of EVs as a preferred mode of transport. The National Electric Mobility Mission Plan, 2020 (“Mission Plan”) was launched in 2013 to set out a broad roadmap for promoting the use of hybrid and electric vehicles. Pursuant to the Mission Plan, the Government of India notified the Charging Infrastructure for Electric Vehicles – Guidelines and Standards on January 14, 2018, which was subsequently revised in 2019, 2020, 2022 and 2023.

Recently, the Ministry of Power (“MoP”) issued the Draft Revised Guidelines & Standards for Electric Vehicle Charging Infrastructure (“Revised Guidelines”) for public comments.^[1] The Revised Guidelines, once implemented, will supersede all the previous guidelines issued by the MoP in relation to the electric vehicle charging infrastructure in India.

Key provisions

The Revised Guidelines has proposed some key changes to the existing guidelines such as detailed provisions in relation to EV charging stations (“EVCS”) both private and public, and includes guidelines for workspace EVCS, bus depot EVCS and community EVCS, along with general requirements for setting up and operating an EVCS. It also provides for registration of public charging stations with the Bureau of Energy Efficiency (“BEE”) through the respective state nodal agencies using the “EV Yatra” portal. It also envisages formation of a committee under Central Electricity Authority to periodically recommend the ceiling limit of service charges to be levied, as well as the applicable discount, to the State Government. Some of the key features of the consolidated Revised Guidelines are set out below:

• Applicability: The Revised Guidelines are applicable to almost all EV charging infrastructure and include owners and operators of EVCS installed in office buildings, personal spaces, educational institutions, bus depots, metro stations highways etc.
• Timelines for compliance: The electricity connection, or modification of existing connection for EVCS will be provided by the respective distribution licensee (“DISCOM”) within a period of 3 days (for metropolitan areas), 7 days (for other municipal areas) and 15 days (for rural areas) from the date of receipt of application by the DISCOM. For rural areas having hilly terrain, the timeline for providing connection is maximum 30 days.
• Single Window Portal: A single window clearance system will be formed by the DISCOM to expedite and streamline the grant of electricity connections to the EVCS. The Revised Guidelines also provide for a standard application form.
• Operational Requirements: The Revised Guidelines also provide for operational requirements to be met by the EVCS owner or operator. These requirements, inter alia, include provisions for civil and lighting works, visual aids, tracking charger usage, adequate space. There are additional requirements which are classified for different types of EVCS.
• Applicable tariff: The Revised Guidelines also provide for tariff applicable to the supply of electricity by the DISCOM to the EVCS. The cost of supply by DISCOM will be 0.7 times of the average cost of supply during solar hours, and 1.3 times of the average cost of supply during non-solar hours. The EVCS owners and operators are required to make arrangements for a separate meter to record and bill the consumption as per the tariff applicable to EVCS.
• Tie up with NSPs: The public EVCS are also required to tie up with at least one online network service provider to enable online booking of charging slots, and provide information like location of EVCS, charging rates and availability.
• Open Access: Any public EVCS is allowed to source electricity from open access, and open access for such public EVCS will be provided within a period of 15 days from the date of receipt of application. For use of open access, public EVCS are only required to pay applicable surcharge, equal to current level of cross subsidy not exceeding 20%, transmission charges and wheeling charges.
• Service charge ceiling: Since electricity will be provided to public EVCS at concessional rates, the ceiling for service fee that may be charged by public EVCS will be fixed by the relevant state government.

How does it impact EV Infrastructure in India?

The Revised Guidelines is a welcome change and hosts multiple incentives for the EVCS owners and operators, including concessional rates of electricity, capped services charge fee, availability of government land at revenue sharing basis, and suitable provisions for safety of EVCS users. In order to facilitate the transition to the efficient e-mobility infrastructure, BEE, which is also the central nodal agency for implementation of the Revised Guidelines, will maintain a national online database of all the public EVCS and charge point operators. To that extent, all the public EVCS operators will be required to register the public charging station with BEE through the respective state nodal agencies using the “EV Yatra” portal. The government will also provide land available with it for setting up public charging stations on a revenue sharing basis and a model revenue sharing agreement has been published along with the Revised Guidelines.

Suggestions on the Revised Guidelines

The Revised Guidelines acts as a catalyst to promote EV infrastructure, with easy to comply regulatory framework. In our view, some of the key aspects which may be considered by the MoP while issuing the Revised Guidelines are set out below:

• Operating requirements: The Revised Guidelines provide detailed provisions for the operation and maintenance of EVCS. These provisions also require all charging stations to be in compliance with the operational requirements as provided under the Revised Guidelines. The Revised Guidelines are, however, silent on whether the operational requirements are required to be fulfilled by residential EVCS. If such operational requirements are to be followed by residential EVCS as well, then it could increase the cost of compliance by individual owners. Since the EV charging infrastructure is at its nascent stage in India, coupled with comparatively high cost of purchasing and owning an electric vehicle in India, it is imperative that the after-costs for maintaining a charging infrastructure is lowered to an extent that owning an electric vehicle becomes an economically feasible alternate for the consumers. The compliance process may be cumbersome and expensive for individuals and actual implementation of safety standards for each charging infrastructure may be a tedious exercise for individuals. The MoP should consider relaxing the operational requirements in case of residential charging infrastructure as referred to in Clause 5 to ensure that the cost of owning an electric vehicle is not onerous. This may include a provision for subsidies to be granted for setting up of residential EVCS in private households, while that the same time ensuring that such incentives are not misused.
• Unauthorized usage: The Revised Guidelines provide concessional rates for electricity to be supplied to the domestic EVCS and its users. The rationale for providing electricity at concessional rates is to incentivize the absorption of electric vehicles in households, however, this may add to issue of increase in unauthorized usage of private EV infrastructure for commercial charging. Without an inspection and monitoring mechanism in place, the concession provided on electricity rate may not be used by the intended beneficiary but may be further used for commercial purposes, which in turn will lead to an increased fiscal liability on the DISCOMs. In anticipation of such a scenario, it is suggested that the private EVCS intended for residential use are either (i) provided concessional rate of electricity only for a limited specified usage, or (ii) made subject to periodic inspection requirements, limited to monitor the usage of electricity through the private EVCS.

The Revised Guidelines not only aim to accelerate the adoption of EVs but also ensure the creation of a robust and accessible charging infrastructure across the country. By addressing critical aspects such as standardization, interoperability, and consumer safety, the Revised Guidelines pave the way for a seamless transition to electric mobility. Moreover, the emphasis on public-private partnerships and the encouragement of innovative solutions reflects the government’s commitment to fostering a collaborative approach. As India moves forward, the effective implementation of the Revised Guidelines will be crucial in achieving India’s goals of reducing carbon emissions and enhancing energy security.

Footnote:

[1] Office memorandum dated July 1, 2024, bearing reference F. No. 12/2/2018-EV, issued by Ministry of Power, Government of India.