EV Charging Stations Don’t Require a License to Operate: Government

In a landmark decision which is expected to greatly benefit theelectric vehicleagenda of the Indian government, the power ministry has announced that electric vehicle charging stations will be categorized as a service, which will allow such stations to operate without a license.

According to a recentreportfromBGR, the power ministry said that the transmission, distribution and trading of electricity need licenses under the Electricity Act, but clarified that during the charging of an electric vehicle, a station doesn’t perform any activity related to transmission, distribution, or trading, thereby not requiring a license.

The announcement is a progressive step towards increasing the adoption of electric vehicles in the country, said Sohinder Gill, Director Corporate Affairs, Society of Manufacturers of Electric Vehicles (SMEV). Requiring a license to operate a charging station was one of the biggest impediments in the way of building a charging infrastructure in the country.

The report also highlights a statement from RK Singh, Minister for Power and New and Renewable Energy, who said:

“We will come up shortly with a policy, including regulatory framework and technical standards on e-vehicles. Besides, we also have a plan for electric vehicle charging infrastructure in the next 15-20 days for setting up charging stations along corridors to be identified.”

The aforementioned policy is expected to keep the charging tariff at an economical rate of Rs. 6 per unit. This will greatly reduce the operational cost ofelectric vehicles, which is expected to be at around less than a rupee per kilometer. In contrast, the operational cost of a petrol or diesel vehicle works out to an average of Rs. 6.50 per kilometer.

Pranob Mehrotra

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