Indian Economy News

Centre has sanctioned US$ 96.9 million (Rs. 800 crore) under FAME Scheme Phase-II for about 7,432 public fast charging stations

The Union Minister of Heavy Industries (MHI), Dr. Mahendra Nath Pandey, has announced the sanction of US$ 96.9 million (Rs. 800 crore) under Faster Adoption and Manufacturing of Electric Vehicles (FAME) India Scheme Phase-II to the Public Sector Undertakings’ (PSUs) Oil Marketing Companies (OMC)- Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), for setting up 7,432 public fast charging stations across the country.

In order to improve the viability of the development of public charging infrastructure, the committee headed by the Director General of Bureau of Energy Efficiency (BEE), recommended several changes. This includes supporting upstream infrastructure (distribution transformers, LT and HT cables, AC distribution boxes, etc.), which usually costs about 60% of the overall cost of setting up a public electric vehicle (EV) charging station. The upstream infrastructure comprises the money that is to be paid by Charge Point Operators to the DISCOMs to obtain electricity connection. The MHI has now approved the financial assistance setting up the upstream infrastructure of up to 80% upstream infrastructure. This, in turn, would make the installation of the charging stations easier by reducing the upfront cost.

The installation is likely to be finished by March, 2024 and the charging capacity will be used for charging electric two-wheelers, four-wheelers, light commercial vehicles, and minibuses. As of now, there are about 6,586 charging stations across the country.

These fast-charging stations will be set up in all the metros, million-plus cities, smart cities, cities of hilly states across the country, highways, and expressways across the country. Therefore, this would provide the owners of EV a convenient charging experience.

These EV charging stations from OMCs will be of the CCS-II type with a capacity of 50 kilowatt (KW) and above, offering efficient and fast charging for EV owners.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.