No Licence Needed for Setting up EV Charging Station: Power Ministry

No Licence Needed for Setting EV Charging Station: Power Ministry
No Licence Needed for Setting up EV Charging Station: Power Ministry

The ambitious EV plans received a big boost with the power ministry stating that a separate license will not be required for setting up electric vehicle charging stations under the Electricity Act 2003. The latest move effectively means that the Electricity Act 2003 does not need to be amended to allow electric vehicle charging stations. The power ministry is expected to soon bring out technical specifications for charging stations.

The power ministry in a statement said that the electricity supplied to a charging station gets converted into chemical energy whenever vehicle charging occurs. Electricity is no longer in the form of electrical energy and the service of charging a vehicle does not mean sale of electricity, the ministry added.

The ministry also clarified that the battery charging activity does not perform activities such as transmissions, distribution or trading in electricity that required licence to be obtained under the provisions of the Electricity Act 2003.

Meanwhile, the Society of Manufacturers of Electric Vehicles (SMEV) has hailed the government's progressive step. Sohinder Gill, Director, Corporate Affairs, SMEV, said the latest move removes one of the major impediments in terms of building a charging ecosystem in the country. He hoped that the government would work on addressing  other related issues like land acquisition along with physical and non-physical incentives.

The power ministry’s clarification will enhance confidence among local as well as foreign investors to invest in Indian charging infrastructure, he noted.