How to Open an EV Charging Station in India? [Updated 2023]

With the industrial revolution, engines running on conventional fuel were introduced to mankind. In this modern world, the downside of conventional fuel sources became prominent. Renewable energy sources-based fuels became the need of the hour. With the development of Renewable energy sources to derive electricity and electric driven vehicles, the question soon formed – ‘How to charge the electric vehicles?’

In a developing country like India, the revolution that electric cars would bring is unimaginable. Taking a step forward in this direction, the Indian Government took a decision to de-license EV charging stations in India. That being said, there are certain power standards to be met before the deployment.

If you are one of those who want to take advantage of this initiative and want to set up your own EV charging station, you need to understand EVs. You also need to understand how to apply for EV charging stations, and the cost needed for operating and maintaining them. Therefore, this blog brings to you all the know-hows needed for opening an EV charging station in India.

What is an EV & EV Charging station?

EVs are the abbreviation of Electric Vehicles. These vehicles are an essential alternative to conventional vehicles from the perspective of lower cost and eco-friendliness. Vehicles utilizing electric combustion both fully & partially can be called EVs.

ev charging station

These types of vehicles make use of electric batteries. Among these, there are some which use a combination of fuel as well as electricity for their operation. Thus similar to the petrol pumps, diesel pumps, or gas stations, these vehicles need to charge their batteries from a station. These stations are called EV charging stations. Here, the station provides charging to the vehicle battery via corresponding chargers.

What are the types of chargers available and their cost?

Chargers are a major requirement for EV charging stations. Depending on the speed of charging, chargers are categorized into three. The first two types are AC-type chargers. The third one is a DC charger. Their charging speed moves from low to fast.

The slower one, Type-1 is a fully AC compatible charger. It includes Bharat AC – 001. The Charging time that it takes to fully.

The moderate one, Type-2 works with both AC and DC charging systems. This includes Bharat DC – 001 and Type-2 AC. The fast one, Type-3, the DC charger, the most expensive as well as highest charging speed, is quite practical when it comes to highway traffic. This is because, with faster charging, it can charge more cars than other types. It includes CHAdeMO and CCS.

Looking from a point of view of economic charging and an appropriate charging speed, Type-2 chargers are the most suitable ones for a public EV charging station.

Their cost is given as below:

Type of Charger	Cost
Bharat AC – 001	Rs. 65,000
Bharat DC – 001	Rs. 2,47,000
Type 2 AC	Rs. 1,20,000
CCS	Rs. 14,00,000
CHAdeMO	Rs. 13,50,000

Remember, the chargers given above are just some of the charger types available in the market. India’s dream of a future with EVs is still in its infant stage. The proper determination and demarcation have yet to roll in. Despite this, the ministry of Power states that a public EV charging station should have a Combined Charging System charger to help the public have a decent charging speed.

What are the initiatives and the Government Guidelines for setting up EV charging stations?

Government Initiatives:

With the execution of FAME scheme Phase 2, the Indian government looks forward to installing about 1000+ EV charging stations before the end of 2023. They are already looking forward to the bids from various companies. In addition to this, the state governments also have showcased a great interest in this project. They are providing subsidies for EV charging stations, varying from state to state.

Government Guidelines for EV charging stations:

As per the directive of the Indian Government, the following guidelines were passed concerning EV Charging stations:

It is mandatory to have an EV charging station every 3 km within the city, every 25 km along the highway, and every 100 km on highways connected to heavy-duty traffic.
Any individual can take initiative to set up an EV charging station as the government has made it license-free. But it is to be ensured that all the guidelines as per the Government mandate on requirements are followed.

What are the requirements needed for establishing an EV charging station and the corresponding costs?

When it comes to the basic requirements for an EV charging station, can be summarized as follows:

The usage of standardized transformers, equipment for substation, and corresponding safety equipment.
Cables capable of carrying 33/11 KV current, and various equipment to measure current usage.
Enough land space to manage vehicular movement as well as at the charging stand.
Proper making of the station from a construction perspective with all desired installations.
Usage of charger models that are cleared as per the guidelines and standards.

An estimated cost required for this project has been given below:

A Brand new electric connection for 250 KVA: Rs 7,50,000/-
Overall basic construction work: Rs 2,50,000/-
Cost of EVSE management software and integration: Rs 40,000/-
Manpower, Maintenance, Technicians: Rs 3,50,000/- (per annum)
Promotional activities: Rs 50,000/-
In case of land being leased:-Rs 6,00,000/- (per annum)

Thus the annual charges at the end of the first year would come to around Rs 40,00,000/-. From the second year onward, the operating and maintenance cost would only come into the picture which would be around Rs 10,00,000/-. It is to be noted that the above costing is just a rough estimate and can vary from state to state. It is just to show the major divisions of the cost that would be needed for establishing an EV station.

Wrapping Up

Now the major question arises, is this a major revenue generation source? This totally depends on your investment vision. The reason is that EVs would be an inevitable future of the industrial age.

So the ROIs are sure to roll in. But the rolling in of these ROIs will definitely depend if the investments are made in a place that is easily accessible, has better space, and has some eateries or refreshments nearby.

With a vision, select a better investment plan. Keep in mind the maintenance cost, operating cost, employee salary might seem hard initially. But planning on your vision will lead to you having a venture that keeps grossing and profiting over time.

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