India Requires USD 30 Billion for EV Charging Infrastructure Growth: IESA

India requires USD 20–30 billion in investments to double the pace of EV adoption and tackle challenges like charging times, accessibility, and convenience. This was highlighted at the recent 'India EV Fast Charging Summit' in New Delhi.

Hosted by the Industry body India Energy Storage Alliance (IESA ), the summit revealed that while India’s EV market has surpassed 4 million sales and is nearing a critical milestone, significant investments in charging infrastructure are essential to sustain and accelerate growth.

Speaking at the Summit, IESA President Debi Prasad Dash emphasised the importance of aligning government schemes with the sector’s growth needs. “We are awaiting the PM e-Drive scheme, which offers double the incentives for charging infrastructure compared to FAME-II. The ministry is considering state-wise demand allocation and aligning central and state policies to optimize support for charging initiatives,” Dash said. The scheme proposes a INR 2,000 crore allocation for 72,300 fast chargers nationwide, including chargers for two-wheelers, three-wheelers, four-wheelers, and electric buses.

Despite these efforts, industry experts at the summit highlighted several pressing issues. Managing Director of CES India, Vinayak Walimbe, pointed out that India’s charging infrastructure requires investments comparable to global benchmarks. “We estimate that USD 20–50 billion would be necessary to establish a robust charging network that meets the needs of an expanding EV market,” he noted.

Grid reliability emerged as a key focus area during discussions. Awadhesh Jha, Executive Director of GLIDA, suggested reallocating funds from creating charging stations to upgrading electricity infrastructure. “If INR 2,000 crore is used to enhance the grid and support distribution companies, it would enable a plug-and-play ecosystem for charge point operators, ensuring better results,” Jha said.

Shiraz Khanna, CFO of Exicom, echoed these sentiments, stressing the need for rural expansion. “Currently, the supply of electricity and power uptime is insufficient. Upgrading transformers and grids will expand EV adoption beyond urban areas into rural India,” he explained.

Experts also advocated for reducing custom duties and GST on imported EV components while boosting local R&D and manufacturing to make EVs more affordable. This approach, they believe, will narrow the price gap, drive adoption, and generate employment in the EV sector.

As India targets 30 percent EV adoption by 2030, collaborative efforts between the government and private sector are essential to create a sustainable and inclusive EV ecosystem. Enhanced investments in charging infrastructure, coupled with strategic policy reforms, can position India as a global leader in EV technology and foster economic growth.