Through its FAME 2 initiative, the Government of India has been incentivizing the manufacture and adoption of E.V vehicles in India. The government has also issued guidelines for setting up electric vehicle charging stations on all major highways which connect the major metros and city clusters. The goal is to set up 2700 public EV charging stations in metros, major cities and including smart cities and those situated in the hilly states of India. All these areas should have one public electric vehicle charging station located in a grid of 3kms X 3Kms.
Guidelines provided by the Government of India for setting up EV charging stations
- EV charging stations can be set up at private residences and offices, and the electricity DISCOMS shall facilitate the same.
- No specific licenses are required for the setup of public EV charging stations. Any individual or organization can freely set up an electric vehicle charging station.
- Performance standards are set for the electric charging stations by the respective Ministry of Power and the Central Electricity Authority.
- Any individual or entity asking for connectivity for setting up a public EV charging station will be accepted on a priority basis by the Electricity Distribution Company licensed for a particular area.
- The power supply can also be granted to such Electric vehicle charging stations directly from the Electricity generation and Supply Company.
Total expense outlay in setting up an Electric vehicle charging station
An EV charging station setup cost could vary between Rs 1 lakh and 45 lakhs. This could cover all expenses, including material, equipment, electricity, advertisement, infrastructure and maintenance. You can make your EV charging station as simple or complex as you like. The EV charging station setup costs will vary proportionately. A public EV charging station may have only basic EV charging facilities with a few charging facilities or maybe a large parking facility with multiple charging stations.
Facilities in an EV charging station
The EV charging station setup costs will consist of, within its ambit, the cost for all of the following:
- Substations and transformers are essential for connecting chargers to cars to the voltage grid.
- Ample Parking area: A safe, designated parking area is essential to enable customers to park their cars safely while charging them.
- A car park facility and installation of various EV charging stations and other machinery: proper installation of charging stations and other machinery is key to enabling customers to charge their cars efficiently. This is a very crucial part of setting up an EV charging station.
- Three types of chargers are typically used in an EV charging station: Rapid chargers, Fast chargers and slow chargers. According to their names, their charging ability also varies.
- Provision of security measures: Customers will park their expensive vehicles for charging, so providing adequate security measures is essential.
- Proper cabling: A 33/11 KV cable is the correct cable for connecting the charging machines to the voltage grid. Using better quality and high-end cables ensures fast charging and satisfied customers.
- Other ancillary facilities like drinking water, restrooms, small eateries and employment of efficient staff at your facility are a must.
If you want to establish a state-of-art electric charging station, it would require the deployment of considerable capital. Tata Capital provides business loans on easy terms for your benefit, which can help you meet your EV charging station setup costs and help set up an EV charging station.
Know more about Tata Capital business loan offerings:-
- Loan corpus: The loan amount varies from Rs 5 Lakh to Rs 75 lakhs. Your financial requirement for funding the setting up of an EV charging station can be very quickly met.
- Loan tenure: The loan tenure varies from 12 months to 36 months. You can easily plan your cash flows and reschedule your principal repayments and interest payments according to your convenience.
- Collateral or security: The above loans are unsecured loans that do not require offering your business or personal assets as collateral.
- Eligibility for applying for a business loan: The eligibility conditions are simple and include the following:-
1. The age of the applicant for a business loan should be between 25 to 65 years.
2. The business must have a profitable track record for three consequent financial years.
3. The business’ sales revenue and turnover should indicate a positive upward trend.
4. Your CIBIL score must be 700 at the time of applying.
5. A qualified Chartered Accountant should audit all the financial books of account financial statements.
- KYC documents are required for securing a Tata Capital Business Loan
1. All Identity and Address proof documents
2. Proof of business ownership, including partnerships deeds, Sole proprietor declaration etc.
3. License documents for carrying out the business and GST TIN
4. Documents relating to the company incorporation
5. Bank statements for the last six months certified by the concerned banker
6. Income Tax returns and all business financial statements, including audited balance sheets and profit & loss statements.
- Interest rates on a Tata Capital business loan: Interest rates on a Tata capital business loan start at 19% p.a. Final interest rates levied would depend on the final assessment of your financial statements, CIBIL score and other factors. Loan interest rates can be fixed or variable. In a fixed interest rate business loan, the EMIs remain fixed, and in the case of a floating interest rate loan, the EMIs amounts will be variable. The floating interest rates are linked to the benchmark RBI’s Repo-linked lending rate.
- EMI calculator: Tata capital provides an EMI calculator that enables you to structure your EMI amounts according to your cash flows and financial convenience. You have to enter the principal amount, the interest rate and the loan tenure to find out the EMI instalments payable by you. As mentioned before, you can schedule the EMI instalment payments according to your financial convenience. Fixed EMIs have fixed payment options, and in structured EMIs, you can customize your payments at your convenience. They facilitate your financial planning process.
- Other calculators: A foreclosure calculator, a prepayment calculator and a GST calculator are also available for your convenience on the Tata Capital website.
Key Takeaways:-
Tata Capital provides you with an easy business loan facility, enabling you to set up an EV charging station easily. Electric vehicles will slowly be made mandatory by the Government of India to prevent global climate change and for environmental conservation. As this is a sunrise industry, the government of India will offer many benefits such as electricity at concessional rates for such facilities and financial subsidies for individuals who help to set up an electric vehicle charging infrastructure in the country.
Today electric vehicles are confined to cars and scooters. The time is not far off when even HCVs and trucks will also be running on electricity. Also, the entire area of the square kilometres covered by electric charging facilities is vast. If you start such a facility, you will enjoy an early entrant advantage. There is a lot of scope to establish a network of many such EV charging facilities, especially on the highways and areas with a large volume of traffic.
Business loan facilities from Tata Capital make setting up an EV charging station a very easy business decision. You don’t need to mortgage your property or assets; you can easily get an unsecured loan to finance the initial setup of your first EV charging facility. You don’t have to worry about not having ready finances to initiate your business; take advantage of the flexible loan facility available from Tata Capital today.
03 October 2022
7 mins read
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