Two days after Prime Minister Narendra Modi urged higher adoption of electric vehicles (EVs) and reduced fossil fuel use amid the ongoing West Asia war, the ministry of heavy industries approved ₹503.86 crore to set up 4,874 public EV chargers.
The approval falls under the Centre’s ₹10,900 crore PM E-Drive electric mobility scheme. It marks the first sanction for charging infrastructure under the scheme, which has earmarked ₹2,000 crore for EV chargers and targets 72,300 units nationwide.
The move comes as EV penetration rises — about 60% of three-wheelers, 4.8% of cars and 6% of two-wheelers sold in India are now electric — but charging gaps persist.
Mint explains the subsidy mechanism and why public charging is critical to India’s electric mobility transition.
How does the subsidy work?
The PM E-Drive scheme allocates ₹2,000 crore specifically to support EV charging infrastructure. It also provides subsidies for electric two- and three-wheelers, buses, medium and heavy trucks, and hybrid and electric ambulances.
With the latest approval, only ambulance-related subsidies remain to be rolled out. Currently, no electric or hybrid ambulance models exist in India, though some automakers are developing them.
Under the scheme, state governments and central PSUs can claim subsidies for setting up EV chargers. For this, they first have to set up a nodal agency to identify locations for the chargers and aggregate demand. This claim is then relayed to the union heavy industries ministry, which oversees, guides, checks, and approves the subsidy, according to scheme guidelines.
The ₹503.86 crore approval covers government-run oil marketing companies — Indian Oil Corporation, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited — to set up chargers at retail fuel pumps and other sites across Rajasthan, Andhra Pradesh, Uttar Pradesh, Gujarat, Kerala, Telangana, Karnataka and Tamil Nadu.
Karnataka alone will install 1,243 chargers with central support of ₹123.26 crore, heavy industries minister HD Kumaraswamy said. The ministry has not disclosed the detailed state-wise allocation.
What does it cost to set up a public EV charger?
While many EV users prefer charging at home, public chargers (for which the government is doling out subsidies), are important, particularly in intercity travel on highways, and in public and commercial areas such as office spaces or railway stations, for instance.
With EV sales rising, charging infrastructure must expand in parallel, said Sharif Qamar of The Energy and Resources Institute (TERI), New Delhi.
Industry executives estimate that installing a public charger body alone can cost ₹8–10 lakh. However, the government uses benchmark costs revised in 2025 — roughly half the 2022 estimates:
- ₹1.6 lakh for a 12 kW charger
- ₹3.4 lakh for a 60 kW charger
- ₹5 lakh for a 120 kW charger
- ₹8 lakh for a 240 kW charger
- ₹12.5 lakh for a 360 kW charger
These benchmark costs determine subsidy levels.
A major expense, however, lies upstream — connecting chargers to the electricity grid. Under PM E-Drive, the Centre plans to subsidize 70–100% of upstream costs at state-owned premises in cities and on highways, and 70% of the charger cost itself.
"It is not only important to set up charging infrastructure across the cities and highways, but also to ensure that these was working when it is needed by the users," said Qamar of TERI, suggesting stringent uptime criteria for chargers supported by incentives.
What is the impact of EVs on Indian roads?
According to the government's PM E-Drive scheme dashboard, nearly 102 crore liters of fuel has been saved, along with a 112 crore kilogram carbon dioxide emissions reduction, due to India's EV sales.
Sales of these zero-emission vehicles have increased over the years, with electric car sales nearing 200,000 units in FY26, an 84% year-on-year increase, according to the Federation of Automobile Dealers Associations (Fada).
Electric bus sales reached 5,356 units in FY26, the highest ever, up 39% from FY25.
The government has positioned electric mobility as a buffer against energy shocks triggered by the West Asia war. With the Strait of Hormuz — a critical global energy corridor — disrupted and crude prices rising, India’s near-90% dependence on oil imports has come into sharper focus.
Why are EV chargers integral?
A robust public charging network addresses ‘range anxiety’ — the fear of running out of battery mid-journey — long seen as a key barrier to EV adoption.
According to an August 2025 NITI Aayog report, which compiled estimates from the International Energy Agency and consultations with Indian charge-point operators, India has 14 electric cars for every public charger, compared to 9 in China, and 18 in the global average.
To be clear, March 2026 data provided by the ministry of heavy industries to parliament suggested that India has installed 27,737 public chargers in the last five years, but only 22,753 were operational.
Carmakers have suggested creating charging “hotspots” — clusters of 20–30 chargers in high-demand areas — instead of a thinly distributed network of 1–2 chargers every 50 km.