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Electric vehicle charging stations in India need no special licence. The Indian government has clarified that setting up charging stations for electric vehicles don't require a special licence. This translates to a big boost for various vehicle manufacturers to carry forward their EV plans for India.
According to Economic Times, the clarification came following a confusion as to whether the charging of electric vehicles batteries performs any activity under trading or distribution of electricity which would require a licence, as part of the Electricity Act of 2003.
However, a recent statement by the power ministry clarified the confusion. The statement mentioned that charging of EV batteries involves utilisation of electricity which is converted to chemical energy. This electricity is then consumed by the electric vehicles while the charging stations earntheir revenue from the owner of the vehicle.
The activity of charging EVs, does not include sale or trading of electricity. As the electricity is consumed within the premises of the charging stations, which maybe connected to the distribution system.
The clarification towards EV charging has received a good response in the industry, creating equal opportunities for everyone in this sector. The clarity and decision from the authorities come after examination and consultation with various stakeholders in the sector, as well as the Central Electricity Authority.
Awadhesh Kumar Jha, VP, Fortum India, stated that in the absence of the clarification, stakeholders in the sector were unsure of the right business model to adopt while setting up charging station infrastructure in India. Although, now with the clarification, private players, OEMs, PSUs and others can work together towards thedevelopment of the appropriate infrastructure required for EV charging in the country.
He also stated that certain percentage of the land in cities be reserved for companies wanting to set up electric vehicle charging stations. Currently, most of the land in cities are owned either by the government or government-controlled agencies.
Jha also mentioned Fortum plans to set up 160 charging stations in the country, within a year's time. These stations will be located close to metros, airports and other parking areas, depending on the access provided.
Thoughts On Electric Vehicle Charging Stations In India
The clarification towards setting up electric vehicle charging stations in the country comes as a big boost for various companies. The clarity will allow major players and stakeholders to set up a robust charging station infrastructure. This will further encourage the adoption of EVs in the country.