Can you set up electric vehicle charging station without a licence? Yes, says Govt

Are you someone who sees future business prospects in the electric vehicles segment? If yes, then, this might be a good news to you.

The Ministry of Power has said that now no separate licence will be required for set up charging infrastructure for electric vehicles.

The activity of charging of the battery for use in EV the charging station does not perform transmission, distribution or trading of electricity as per the provisions of the Electricity Act, 2003, declared letter of the Power Ministry.

“The charging of battery essentially involves utilisation of electrical energy for its conversion to chemical energy, which gets stored in the battery. Thus, charging of the battery of an electric vehicle by a charging station involves a service requiring consumption of electricity by the charging station and earning revenue for this purpose from the owner of the vehicle,” added the clarification on charging stations for EVs.

https://static-cdn.publive.online/entrackr/media/pdf_files/wp-content/uploads/2018/04/wp-content/uploads/2018/04

The clarification follows after confusion over whether during charging of the battery for use in electric vehicles, the charging station performs any activity of transmission, distribution or trading of electricity, which would require a license under the Act.

The conclusion from the ministry came after detailed examination in consultation with various stakeholders, including Central Electricity Authority.

The Indian government is aggressively pushing towards becoming electric vehicle market to create job opportunities and help economy rise.

Niti Aayog, which has drafted a policy for electric vehicles, has suggested that EVs could have green number plates. It is also planning to offer free parking for EVs and remove toll charges on them.

The Indian government has set a deadline of 2030 to turn the country into electric vehicle market. It has set a climate change goal of reducing the carbon emissions intensity of its gross domestic product by 33-35% by 2030 from 2005 levels.

The potential of the electric mobility sector has caught the attention of many including conventional oil and gas companies.

Paytm founder Vijay Shekhar Sharma, whose company is backed by global investment giants like Alibaba and SoftBank, had also asserted that India can become a global reference for electric mobility. Sharma had told in an earlier interview that if he has to start from scratch again then he would prefer to venture into the electric vehicle segment.

Meanwhile, the EV industry has welcomed the govt decision. The EV charging infrastructure would need large investments and will require entry of more private players.

The complete transition to EVs will need a considerable investment of ₹1.8 lakh crore in setting up charging stations and other infrastructure in the country, according to a report by Feedback Consulting.