CII calls for doing way with ceiling on service fee for EV charging

Industry body CII in a report has suggested doing away with the ceiling on service fee for charging of electric vehicles, arguing that any cap at this juncture will disincentivise private investment due to uncertain costs and utilization levels.

While the CII report welcomes the Union government's announcements on production linked incentive scheme (PLI) for advanced chemistry cell battery storage and the notification on charging infrastructure, it calls for enhancing government support and fiscal incentives since the initial 50 GWh capacity under PLI may not be adequate for a large market size.

CII also recommended waiver of GST on end-user for availing charging for EVs. The report highlights the need to rationalise GST on battery fitted in EVs v/s battery detached and sold separately. Both should attract equal GST of 5 per cent it suggested in the report.

The report has made several suggestions including the need for India to build a secure resource base of raw material supply to scale up battery manufacturing capacity and a detailed roadmap for reverse logistics and scrap management channels for battery reuse and recycling, to achieve circular economy.

The industry body has also recommended that 25 per cent Parking Space be earmarked and given on long term lease against revenue sharing by Municipal Corporations for Electric Vehicle (EV) Charging infrastructure.

The Union Ministry of Power in its guidelines on setting up public charging infrastructure has stipulated that state discoms fix a ceiling on service fee which a Charge Point Operator can levy on the end user.

"CII believes that at this stage of technology, costs and utilization levels are uncertain so any cap worked basis a particular technology or utilisation level will disincentivise private investment. Besides, it will not encourage an operator to invest in latest and future looking technology, thus affecting EV adoption," it said.

The report -- A Roadmap for Future Mobility & Battery Storage -- is divided into four chapters; discusses the issues across future mobility and presents key recommendations for the government to consider for making the existing ecosystem even more conducive for enhancing sustainable investment and growth.