The Government of India has issued new guidelines under the PM E-DRIVE scheme to promote electric vehicles (EVs) and strengthen charging infrastructure. The scheme aims to build a network of charging stations in cities and along highways, making both daily commutes and long-distance travel easier for EV users.
This initiative is not only about promoting green mobility; the government is targeting 30% EV penetration by 2030. To achieve this, India needs to increase EV adoption by 22 percentage points over the next five years. Strengthening charging infrastructure has therefore become a strategic necessity.
Let us break down the guidelines in detail and see what’s in it for investors.
What’s Happening?
The central government has taken a major step under the Rs 10,900 crore PM E-DRIVE scheme by issuing operational guidelines for setting up around 72,300 public EV charging stations, announced on September 28, 2025. Out of this, Rs 2,000 crore will be allocated specifically for charging infrastructure to create a reliable network for EVs across the country.
According to the new rules, charging and battery-swapping stations established in government offices, public spaces, and highways will be eligible for subsidies. The support will extend beyond charging units, covering upstream infrastructure costs and, in many cases, the cost of EV supply equipment (EVSE).
Subsidy Structure for EV Charging Stations
Under the new guidelines, EV charging stations and upstream infrastructure installed in government premises such as offices, residential complexes, hospitals, and educational institutions will receive a 100% subsidy, provided these chargers are available free of cost to the general public.
For locations such as railway stations, airports operated by AAI, retail outlets of public sector OMCs, bus stations run by STUs, metro stations, municipal parking, public sector ports, and toll plazas and highways/expressways controlled by NHAI or state governments, the subsidy level will differ, with up to 80% subsidy on upstream infrastructure and up to 70% on EV supply equipment (EVSE).
Additionally, charging stations set up on city roads, shopping malls, market complexes, and highways/expressways will also be eligible for an 80% subsidy on upstream infrastructure costs.
Priority Areas for EV Charging Network
The PM E-DRIVE scheme will initially prioritise cities with a population of over 10 lakh (2011 Census), as well as satellite towns connected to the Smart City Mission and seven major metro cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, and Ahmedabad.
In addition, the capitals of states and union territories and cities identified under National Clean Air Programme (NCAP) will not be included in this coverage. Notably, entities are given the flexibility to set up stations in other cities based on local demand and EV penetration.
A key part of the scheme is to make inter-city and inter-state highways EV-ready, with route selection guided by the Ministry of Road Transport & Highways (MoRTH) and other agencies. This will expand the EV charging network beyond urban boundaries, supporting long-distance travel.
What’s in It for Investors?
For investors looking at capital markets, this scheme opens up several opportunities. Companies engaged in EV charging, battery swapping, and EV manufacturing have received a strong signal that demand is set to rise in the coming years.
The allocation of Rs 2,000 crore, coupled with a 100% subsidy in certain cases, will not only lower costs but also enhance the potential returns on investment.
Both public and private sector companies stand to benefit, which could further strengthen the positive investment trend for businesses linked to EVs and charging infrastructure.
What’s Next?
The issuance of new guidelines for EV charging stations under the PM E-DRIVE scheme is not just about addressing immediate needs but also about building a strong foundation for the future. The faster the charging network grows, the smoother India’s transition to electric mobility will be.
Between 2021 and 2025, EV registrations have increased more than sixfold.
The outlook is even more encouraging. According to Fortune Business Insights, India’s EV market size, valued at just $3.21 billion in 2022, is projected to reach $113.99 billion by 2029, growing at a CAGR of nearly 66.52%.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
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