Start a Charging Station Business for EV Without License

By Olga Robert
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    In a statement, the power ministry has clarified that there is no requirement to get a separate license for setting up of a charging station for electric vehicles (EV) under the Electricity Act of 2003. This will give a push to the EV plans set for the country.

    Start a Charging Station Business for EV Without License

    Why is no license required?

    Under the Electricity Act of 2003, a license is required for any activity of transmission, distribution or trading of electricity. This caused a confusion on if charging a battery of a vehicle resulted in the same.

    The power ministry said, "The charging of battery essentially involves utilisation of electrical energy for its conversion to chemical energy, which gets stored in the battery. Thus, charging of the battery of an electric vehicle by a charging station involves a service requiring consumption of electricity by the charging station and earning revenue for this purpose from the owner of the vehicle."

    Eliminating Monopoly

    This clarification will bring welcome stakeholders in the sector, and level up the competition by keeping the market open.

    "In absence of such clarification, stakeholders were not sure of which business model to adopt for providing charging infra for consumers. Now, PSUs, private players, discoms, original equipment manufacturers, etc can join hands in developing a robust and appropriate charging infra for wider adoption of EVs in India," said vice president of Charge & Drive and Sustainability at Fortum India.

    The activity does not cause a sale of electricity as the electricity will not travel beyond the premises of the charging station.

    Read more about: electric car
    Story first published: Monday, April 16, 2018, 12:54 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more