In a significant move to bolster the electric vehicle (EV) sector, the federal government has introduced a new reduced base tariff of Rs 39.70 per unit for electricity at EV charging stations, allowing operators to add charges without a ceiling for operational costs.
Dr Sardar Mohazzam, Managing Director of the National Energy Efficiency and Conservation Authority (NEECA), announced this change during the 5th meeting of the Central Standing Committee of the FPCCI on Energy. The previous tariff of Rs 70 per unit included a Rs 22 cap for operational expenses, which has now been removed, granting flexibility to charging station operators.
The NEECA head emphasized that operational costs vary across regions, particularly on inter-city highways and hilly areas. To facilitate the establishment of EV charging stations, NEECA requires only two no-objection certificates, with a streamlined online application process that takes just 15 days.
Dr Mohazzam projected a substantial increase in charging stations due to these government incentives, envisioning a network with a charging point every 100 kilometers on motorways. Malik Khuda Baksh of the FPCCI and SM Tanveer of the United Business Group expressed their support for the government’s efforts to expand the EV market and reduce the transport sector’s carbon footprint.
Yasir Bhambani, CEO of ADM Group, shared plans to establish over 3,000 EV charging stations nationwide and set up an assembly plant for EV production, aiming to replace conventional fuel-powered vehicles in urban ride-hailing services.