Business idea: You can set up EV charging station - no need for a licence

The ministry clarified that a station does not perform any activity related to the transmission, distribution or trading of electricity

In a move to encourage electric vehicles (EV) on road, individuals may soon be able to able to set up charging stations without applying for any licences, according to a report in The Economic Times. However, there will be a limit on the tariff they can charge from electric vehicle owners. 

According to the report, the government has still not set any criteria for applying for a charging station infrastructure but such stations will be monitored and have to meet specifications and performance standards set by the power ministry, a senior official told ET. He further added that state electricity regulatory commissions (SERCs) will fix tariffs for electricity supply from distribution companies to the charging stations at a ceiling of 15% over the average cost of supply. 

Recently, Tata Power said it has signed a MoU with state-run oil marketer Hindustan Petroleum Corp (HPCL) for setting up electric vehicle (EV) charging stations at HPCL's retail outlets and other locations across the country.

"Tata Power and HPCL, through this new landmark MoU (memorandum of understanding), have agreed to collaborate in planning, development and operation of charging infrastructure for electric vehicles (e-cars, e-rickshaws, e-bikes, e-buses, etc.), at suitable locations across India," said the official statement. 

Apart from these automakers, an individual willing to set up a charging station "should apply for connectivity and the distribution company is bound to provide connectivity. Obtaining electricity from open access is also permissible," the official added. 

In April, the power ministry has categorised charging batteries of electric vehicles as a service, a move which will help such stations operate without a licence and encourage the use of e-vehicles.

The ministry said in a clarification that during the charging of e-vehicles, a station does not perform any activity related to the transmission, distribution or trading of electricity.

"Hence charging of batteries of electric vehicles through charging station does not any require a licence under the provision of the Electricity Act 2003," it said.

Furthermore, ET reported that the government wants to have public electric charging stations at every three kilometres and has identified nine cities including Delhi, Pune, Mumbai, Bengaluru and Ahmedabad where it will start pilot projects through some central public sector undertakings.