Govt to Offer Incentives for Downstream EV Charging Gear in First-Ever Guidelines, Covering Guns and Connectors
The Indian government is finalizing comprehensive guidelines to accelerate the deployment of 72,300 electric vehicle (EV) charging stations across the country. The draft rules, prepared under the PM E-Drive scheme, will turn state governments into “demand aggregators” to streamline land identification and tendering processes for charging infrastructure.
According to two senior officials familiar with the matter, the Centre will soon notify these guidelines after ongoing inter-ministerial consultations. The framework was circulated for review among 12 ministries on August 29, with the final notification expected in the coming months.
States to play a central role
“The participating state will have to appoint a nodal agency. Their nodal agency will identify land or location for the charging stations. Once that is done, the states will invite tenders for demand aggregation. The Centre will disburse incentives to states, which will then pass them on to companies setting up the EV chargers,” said one of the officials.
Earlier plans involved assigning this responsibility solely to central public sector enterprises (CPSEs). The revised approach now includes states and union territories, alongside CPSEs such as NHAI, CONCOR, AAI, and Indian Railways, to maximize nationwide coverage.
Incentives for infrastructure
The guidelines will provide up to 80% subsidy for upstream or “behind-the-meter” costs—including electricity supply upgrades and electrical equipment expenses. In a first, limited support will also be extended for downstream infrastructure like EV charging guns and connectors, specifically for units set up inside government complexes.
The incentives fall under the ₹10,900 crore PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, launched in 2024 and recently extended till FY28. This initiative supports EV purchases, charger installation, electric bus adoption, and the modernization of testing facilities.
Growing state participation
States such as Maharashtra, Delhi, Gujarat, and Andhra Pradesh have already expressed interest in identifying suitable sites and aggregating demand. The central subsidy will be in addition to existing state-level incentives, creating a multi-layered support system for private and public charging providers.
Public charging network expanding rapidly
India’s EV charging network is growing at a remarkable pace. According to CareEdge Ratings, public charging stations increased from 5,151 in 2022 to 11,903 in 2023, and further to 25,202 by the end of FY24, touching 26,367 in early FY25.
By establishing a structured framework, the government aims to address key gaps in charging accessibility and ensure equitable distribution of infrastructure. The combination of state participation, CPSE involvement, and robust financial incentives is expected to create a competitive bidding environment and accelerate EV adoption.
The upcoming guidelines signal a major shift in India’s EV infrastructure strategy, as policy makers push to align public and private investment with national clean mobility goals.
