Government Subsidies and Policies for EV Charging Stations — 2025

The electric vehicle (EV) revolution in India is impossible without a strong charging infrastructure. As adoption grows rapidly, the Indian government — at both central and state levels — is offering policies, subsidies, and incentives to encourage entrepreneurs, companies, and even housing societies to set up EV charging stations.

But how do you actually get these subsidies? Which policies apply in 2025? What documents will you need? How long does the process take? And most importantly — is it financially viable?

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1. Why EV Charging Stations Matter in 2025

EV adoption in India is accelerating thanks to:

• Declining battery costs.

• Government mandates for cleaner transport.

• Growth of last-mile delivery, ride-hailing, and logistics.

• Consumers seeking cheaper running costs compared to petrol/diesel.

However, “range anxiety” is still the number one concern. Without widespread charging points — especially reliable, fast, and affordable ones — many people hesitate to buy EVs.

That’s why both central and state governments have introduced policies to support charging station deployment. In 2025, these policies are more structured than before, focusing on technical safety, financial support, and long-term business models.

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2. Central Government Policies & Guidelines

2.1 Ministry of Power (MoP) Guidelines — 2024 Update

In 2024, the Ministry of Power issued updated “Guidelines for Installation and Operation of EV Charging Infrastructure.” These rules are the backbone of India’s EV charging ecosystem.

Key points include:

• Charger Types & Standards: Mandating connectors like CCS2 for fast DC charging and Type-2 for AC charging.

• OCPP & Interoperability: Chargers must comply with Open Charge Point Protocol (OCPP) for remote monitoring and payment integration.

• Safety & Metering: Strict rules for earthing, residual current devices (RCDs), and metering of energy consumed.

• Cybersecurity & Data: Operators must ensure secure handling of charging data.

• Tariff Rules: States can set “reasonable” EV tariffs, but they must be lower than commercial tariffs to make charging affordable.

2.2 Battery Swapping Guidelines — Jan 2025

Recognizing that swapping is vital for e-2Ws and e-3Ws, the government issued guidelines for battery swap stations:

• Standardized battery packs.

• Rules for ownership vs rental models.

• Safety and recycling obligations.

• Billing transparency for users.

2.3 Central Subsidy Programs

The FAME II scheme (2019–2024) played a historic role by funding thousands of chargers across highways and cities. In 2025, its direct incentives for new charging stations have tapered off, but:

• Existing sanctioned projects are still being implemented.

• The government now routes incentives through PM E-DRIVE and nodal portals.

• Public Sector Units (IOCL, BPCL, HPCL) continue to receive funding to install chargers at petrol pumps.

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3. State-Level EV Policies (The Real Game-Changer)

While central rules set the technical and safety framework, state EV policies decide how much financial support you actually get.

As of 2025, more than 25 states and UTs have dedicated EV policies. Let’s look at some important examples:

3.1 Delhi EV Policy

• Goal: Charging every 5 km within the city.

• Subsidy: Grants for slow chargers in residential/commercial complexes.

• Land support: Permission to use public parking areas for EV chargers.

• Tariff: Lower electricity tariff category for EV charging.

3.2 Uttar Pradesh EV Policy (2025 Amendment)

• Subsidy on upstream electrical infrastructure (transformers, feeders).

• 20% of fixed capital cost for charging stations as subsidy (up to a cap).

• Single-window clearance system.

• Focus on highway and rural charging.

3.3 Maharashtra EV Policy

• Capital subsidy for public fast charging (up to 25%).

• 100% exemption on electricity duty for first 5 years.

• Extra FSI for real estate developers who integrate charging.

3.4 Tamil Nadu EV Policy

• Land lease at concessional rates in government industrial parks.

• Capital subsidies for both public and captive charging.

• Waiver of demand charges for first 2 years.

3.5 Karnataka EV Policy

• 25% subsidy on equipment cost for public charging stations.

• Waiver of stamp duty and registration charges.

• Special tariff category for EV charging.

Each state tweaks its policy, so you must carefully read your state’s EV policy PDF before applying.

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4. Types of Subsidies & Support Available

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5. Cost of Setting Up an EV Charging Station

Here’s a breakdown of typical costs in 2025.

5.1 Equipment & Installation

5.2 Other Costs

• Civil works & foundation: ₹50,000 – ₹2.5 lakh.

• Electrical cabling & transformer upgrades: ₹50,000 – ₹10 lakh+.

• Branding, signage, canopy: ₹20,000 – ₹2 lakh.

• Software & payment integration: ₹20,000 – ₹2 lakh.

Total (small public station with 30 kW DC + 7 kW AC): ₹9–15 lakh.
Large hub (2–4 fast chargers): ₹25–50+ lakh.

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6. Step-by-Step Guide to Apply for Subsidy

Step 1 — Decide Your Business Model

• Independent Charge Point Operator (CPO).

• Franchise partner with big CPOs (Tata Power, Statiq, Jio-bp, etc.).

• Site owner (mall, petrol pump, parking lot) partnering with a CPO.

Step 2 — Conduct Feasibility Study

• Check location traffic flow.

• Assess nearest transformer capacity.

• Estimate daily kWh demand and revenue potential.

Step 3 — Check Eligibility

• Visit MoP website for central rules.

• Check your state EV policy for subsidy details.

Step 4 — Secure Land & Grid Permissions

• Lease/NOC agreement for site.

• Apply to local DISCOM for load sanction.

Step 5 — Apply for Subsidy

• Submit application to state nodal agency with:

  • DPR (Detailed Project Report).

  • Vendor quotations.

  • Technical specs of chargers.

  • Company registration and GST details.

Step 6 — Install & Commission

• Procure OCPP-compliant chargers.

• Follow MoP technical and safety guidelines.

Step 7 — Inspection & Reimbursement

• Nodal agency inspects.

• Submit invoices and commissioning report.

• Subsidy released (2–12 weeks later).

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7. Documents Required

• Company Registration Certificate / GST / PAN.

• Lease deed or land ownership proof.

• NOC from landlord.

• Site map & photos.

• Load sanction from DISCOM.

• Vendor invoice & technical datasheets.

• DPR (business plan).

• Bank details & cancelled cheque.

• Commissioning certificate after installation.

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8. Timeline

Total = 3–6 months for a typical public charging project.

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9. Example Budget (Small Public Station)

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10. Tips for Success

• Engage DISCOM early — grid connection delays kill projects.

• Buy quality chargers — downtime reduces revenue and subsidy eligibility.

• Plan extra load capacity — cheaper to prepare now than upgrade later.

• Use single-window clearance portals in states that offer them.

• Maintain clean records — invoices, bank proofs, photos, reports.

• Insure your assets against theft and damage.

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11. Expanded FAQ

Q1. Do all states give subsidies for charging stations?
No, but most states have some form of support — check your state EV policy.

Q2. Can I set up a charger at my petrol pump?
Yes. Oil marketing companies (OMCs) also invite partnerships for charging at fuel stations.

Q3. How much money can I earn from one station?
Depends on location. Busy urban spots may break even in 3–4 years, while remote areas need government support or fleet tie-ups.

Q4. Is GST applicable on charging service?
Yes, currently 5% GST applies to EV charging services.

Q5. Can housing societies install subsidized chargers?
Some states (like Delhi, Maharashtra) offer support for residential group housing charging points.

Q6. What if I want to run a battery swap station instead?
Battery swap operators also get policy support; standards and subsidies differ, but the process is similar (site, grid, application, inspection).

Q7. Do subsidies apply to imported chargers?
Yes, as long as they meet BIS and MoP standards. Some states prefer Indian-made chargers.

Q8. Is there subsidy for private home chargers?
Usually no, subsidies are focused on public or semi-public charging.

Q9. What are the risks?
Low utilization, long subsidy delays, and grid upgrade costs. Mitigate by choosing high-demand locations.

Q10. What about financing options?
Public banks and NBFCs now offer green loans. Many CPOs also provide franchise models with financing support.

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12. Final Checklist Before You Start

• Chosen location with high visibility.

• Confirmed DISCOM load and tariff.

• Checked latest state EV policy.

• Prepared DPR with cost and revenue model.

• Collected all required documents.

• Selected OCPP-compliant chargers.

• Applied for subsidy through official portal.

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Conclusion

Government subsidies and policies in 2025 make EV charging infrastructure a real opportunity. While central support is more structured and less direct than before, states are leading the way with capital subsidies, tariff benefits, and land concessions.

If you’re planning to enter the EV charging business:

• Start with a detailed feasibility study.

• Engage early with your DISCOM.

• Apply under your state’s EV policy.

• Follow MoP technical guidelines strictly.

Done right, an EV charging station can become a steady revenue source — while contributing to India’s clean mobility future.