Government Support Entrepreneurs to Start EV CS Business

PR Newswire:
The government encourages private entrepreneurs to set up EV charging stations by providing subsidies, financial incentives, and simplified regulations, such as the absence of a licensing requirement, under schemes like the PM E-DRIVE scheme. This initiative aims to build a widespread charging infrastructure by making it a financially viable and accessible business opportunity for individuals and businesses across India, supporting the growth of green mobility.

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ESS News Sep 6, 2025 7 Add to Reading List

Government Support Entrepreneurs to Start EV CS Business

Yes, subsidies and incentives are available for setting up EV charging stations in India, but they are primarily state-level and under specific programs like the PM E-DRIVE Scheme. Delhi offers up to a 100% subsidy on charging points, while Maharashtra has Viability Gap Funding for DC fast chargers.

Government Initiatives to Support Entrepreneurs

Financial Incentives & Subsidies:

Schemes like the PM E-DRIVE offer upfront subsidies for charging equipment, making the initial investment lower for entrepreneurs.

Electricity Tariffs:

Charging stations benefit from electricity tariffs capped at the Average Cost of Supply, which is a favorable rate compared to commercial tariffs, reducing operational costs.

Simplified Regulations:

Setting up an EV charging station is an unlicensed activity, which simplifies the process for entrepreneurs and reduces barriers to entry.

PM E-DRIVE Scheme:

The Ministry of Heavy Industries provides subsidies for the deployment of EV charging infrastructure, particularly on highways and in cities, though the specific details and amounts are determined on a case-by-case basis through proposal evaluation.

EV Mitra Initiative:

This is a government initiative offering subsidies to make EV charging infrastructure more affordable for both individuals and businesses.

Other Forms of Support

Tax Benefits:

Charging station operators can benefit from reduced registration fees, various tax exemptions, and other financial incentives.

Reduced Land Costs:

Some government policies offer land at subsidized rates or on favorable lease terms for setting up charging stations.

Special Electricity Tariffs:

Certain states provide reduced electricity tariffs for EV charging stations, lowering their operating costs.

Interest Subsidies on Loans:

Business owners setting up charging stations may be eligible for an interest subsidy on loans taken to fund the infrastructure.

Benefits for Entrepreneurs

Lucrative Business Opportunity:

The government's support makes the business of EV charging infrastructure more profitable and less risky, attracting investors and entrepreneurs.

Flexible Locations:

Entrepreneurs have the flexibility to install charging stations in various locations, including public spaces, commercial buildings, highways, and rural areas, expanding revenue potential.

Contribution to Green Mobility:

By supporting the charging network, entrepreneurs contribute to India's green mobility mission, promoting sustainable transportation and reducing carbon emissions.

How to Get Involved

1. Identify a Suitable Location:

Choose a location based on visibility, accessibility, and proximity to existing power supply.

2. Install Equipment:

Set up the charging equipment, ensuring it meets the required safety standards.

3. Ensure Network Connection:

Establish a network connection for remote monitoring and management of the charging station.

4. Launch and Promote:

Launch the charging station and promote its services to attract EV users.

State-Level Subsidies and Incentives

Delhi:

Offers a 100% subsidy on the cost of charging points, up to ₹6,000 per point, for the first 30,000 slow/medium chargers.

Maharashtra:

The 2025 policy includes a Viability Gap Funding (VGF) scheme that can reimburse up to 15% of the charger cost (up to ₹10 lakh for DC fast chargers).

Uttar Pradesh:

In 2025, it became the first state to subsidize upstream electrical infrastructure for charging stations, offering a 20% subsidy on capital investment, up to ₹10 lakh per station.

Other states:

States like Gujarat, Telangana, Tamil Nadu, and Karnataka also offer various incentives, which can include direct subsidies, tax exemptions, reduced electricity duty, SGST refunds, property tax discounts, and even subsidized land for charging station development.