Electric vehicles are no longer a “future trend” in India. They are already here. From Ola and Uber electric cabs to delivery fleets and private EV owners, charging demand is rising fast.

The Indian government is actively supporting this shift through the PM E-DRIVE Scheme, which offers ₹8–12 lakh subsidy per EV charging station.

If you’re planning to start an EV charging business, this guide explains everything from scratch—eligibility, subsidy, costs, setup steps, and mistakes to avoid—in simple language.

What Is the PM E-DRIVE Scheme?

PM E-DRIVE (Prime Minister Electric Drive Initiative) is a scheme by the Government of India to accelerate:

• Electric vehicle adoption
• Public EV charging infrastructure
• Commercial charging operators across cities and highways

The scheme provides capital subsidy to reduce the upfront cost of setting up EV charging stations, especially in public and high-traffic locations.

How Much Subsidy Can You Get?

Under PM E-DRIVE, subsidy is linked to infrastructure cost + charger cost.

Subsidy Coverage

• Up to 80% of upstream infrastructure cost
  (electric connection, transformer, cabling, civil work)
• Up to 70% of EV charger equipment cost
• Up to 100% subsidy for government or public premises (case-specific)

Subsidy Release Structure

• 70% released before commissioning
• 30% released after the station becomes operational and integrated

💡 Final subsidy amount depends on charger capacity, location type, and state-level approval.

Who Is Eligible to Apply?

You can apply if you are:

• Individual entrepreneur
• Proprietorship / Partnership / LLP
• Private Limited Company
• MSME
• Fuel station owner
• Mall, hotel, or parking owner
• Fleet operator or logistics company

Basic Requirements

• Registered legal entity with GST
• Land ownership or long-term lease
• Power availability at the site

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Step-by-Step Process to Start an EV Charging Station

Starting an EV charging station is not complicated, but it does require planning in the right order. Most mistakes happen when people rush the setup without understanding power needs, location behavior, or government approvals.

Let’s break this down step by step.

Step 1: Select the Right Location (This Decides Everything)

Location is the single biggest success factor for an EV charging station.

Even the best charger will sit idle if vehicles don’t naturally stop there.

A good EV charging location has three things:

1. Regular vehicle movement
2. Natural stopping time
3. Easy visibility and access

Best Locations That Actually Work

• Highways
  EV users prefer predictable charging points every 25–50 km. Highway restaurants, fuel pumps, and rest stops work very well.
• Petrol Pumps
  They already have vehicle traffic, space, and power familiarity. EV users trust these locations.
• Shopping Malls & Multiplexes
  People stay for 1–3 hours. Charging happens passively while they shop or watch a movie.
• Metro Stations / Railway Stations
  Good for fleet vehicles, taxis, and daily commuters.
• Bus Depots & Logistics Hubs
  Ideal for high-capacity DC chargers used by buses and delivery fleets.
• IT Parks & Office Zones
  Employees charge during office hours. This gives consistent weekday usage.
• Large Residential Societies
  Only works if the society has many EV owners, not just one or two.

📌 Practical Rule:
If people already stop there for 20–60 minutes, charging becomes natural.

⚠️ Avoid locations that rely only on future EV growth. You need current usage, not hope.

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Step 2: Decide the Charger Type (Don’t Install Only Slow Chargers)

Choosing the right charger mix is critical. Many beginners make the mistake of installing only AC chargers because they are cheaper.

That limits your earnings.

Common EV Charger Types Explained Simply

Charger Type	Power	What It’s Used For
AC Charger	7–22 kW	Two-wheelers, private cars
DC Fast Charger	30–60 kW	Cars, taxis, fleet vehicles
DC Fast Charger	100 kW+	Buses, trucks

• AC chargers are slow but affordable
• DC chargers are expensive but earn faster

Best Starter Combination (Balanced & Practical)

• 1 × DC Fast Charger (60 kW)
• 1 or 2 × AC Chargers (7–22 kW)

This setup:

• Qualifies for subsidy
• Serves both private users and fleets
• Keeps initial investment controlled

💡 Fast chargers attract repeat customers and commercial vehicles.

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Step 3: Power & Electrical Planning (Most Ignored, Most Important)

Electricity planning is where many projects get delayed or become expensive.

Before applying for subsidy or buying chargers, you must confirm power feasibility.

What You’ll Need

• Commercial electricity connection
• Dedicated EV charging meter
• Load approval from local DISCOM
• Transformer (only if load is high)
• Earthing and safety systems

Why This Step Matters

• DC fast chargers need high sanctioned load
• Power upgrades can take weeks or months
• DISCOM rules vary by state and area

⚠️ Many people buy chargers first and then discover their site cannot support the load.

📌 Smart Move:
Speak to your local electricity office before finalising chargers.

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Step 4: Prepare All Required Documents

Once location and power feasibility are clear, documentation becomes straightforward.

You’ll typically need:

• Business registration proof
• GST certificate
• PAN and Aadhaar
• Land ownership or lease agreement
• Site layout and electrical drawings
• Charger quotation from manufacturer
• Power sanction letter
• Bank account details

💡 Having documents ready speeds up subsidy approval and avoids back-and-forth with authorities.

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Step 5: Apply Under the PM E-DRIVE Scheme (Only One Official Way)

Applications must be submitted only through the official PM E-DRIVE portal.

🔗 https://pmedrive.heavyindustries.gov.in

On the portal, you can:

• Read detailed scheme guidelines
• Check eligibility
• Submit your proposal via the state nodal agency
• Track approval status

⚠️ Important Reality:

• Subsidy approval is not instant
• Final clearance comes via State Nodal Agencies
• Any private agent promising “guaranteed approval” should be avoided

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Step 6: Installation & Commissioning

After approval:

• Chargers are installed by approved OEMs
• Electrical safety and grid checks are done
• Payment systems (UPI, QR, apps) are enabled
• Station is officially commissioned

This is when your charging station becomes live and usable.

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Step 7: Claim the Subsidy Amount

Once operational:

• Upload invoices and commissioning proof
• Physical inspection may be done
• Subsidy is released in two phases

This completes the setup cycle.

Complete Cost Structure of an EV Charging Station (Before & After Subsidy)

One common myth is that starting an EV charging station requires ₹20–30 lakh upfront.
That used to be true earlier. With current government support, the numbers look very different.

Let’s break the cost line by line, so you know exactly where the money goes.

1. Cost of EV Chargers (The Core Expense)

Chargers are the heart of your station. Cost depends on power rating, brand, and certification.

Typical Charger Costs in India

Charger Type	Power	Approx Cost
AC Charger	7–22 kW	₹1–2 lakh
DC Fast Charger	30–60 kW	₹6–8 lakh
DC Fast Charger	100 kW+	₹15–30 lakh

💡 For first-time entrepreneurs, 60 kW DC fast chargers give the best balance between cost and earnings.

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2. Electrical & Civil Infrastructure Cost

This is the part most people underestimate.

It includes:

• Cabling and wiring
• Panels and breakers
• Earthing and safety equipment
• Foundation and civil work
• Transformer (only if required)

Typical cost range:
👉 ₹3–4 lakh

⚠️ If your location already has high power availability (like petrol pumps or malls), this cost may be lower.

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3. Software, Payments & Backend Systems

Modern EV charging is not just “plug and charge”.

You’ll need:

• Charging management software
• Mobile app or QR-based access
• UPI / card payment integration
• Usage monitoring and reports

Cost:
👉 ₹50,000 – ₹1 lakh

Most charger companies bundle this with hardware.

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4. Total Setup Cost (Before Subsidy)

If you install:

• 1 × DC Fast Charger (60 kW)
• 1 × AC Charger (22 kW)

Your total investment usually looks like this:

Component	Cost
Chargers	₹7–9 lakh
Electrical & civil work	₹3–4 lakh
Software & payments	₹0.5–1 lakh
Total	₹10–15 lakh

This is the realistic all-in cost, not brochure numbers.

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5. How Subsidy Changes the Game (After PM E-DRIVE)

Under the PM E-DRIVE scheme:

• A large portion of charger cost
• And most of infrastructure cost

…is reimbursed as subsidy.

After subsidy adjustment:

👉 Your actual out-of-pocket investment can come down to ₹3–6 lakh

This is why EV charging has become attractive even for:

• Small business owners
• Fuel pump partners
• Mall owners
• Individual entrepreneurs

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6. Ongoing Monthly Expenses (Often Ignored)

Apart from setup, expect regular expenses like:

• Electricity cost (largest variable)
• Internet & software fees
• Minor maintenance
• Land lease or revenue share (if applicable)

These costs are manageable only if location and charger type are chosen wisely—which is why earlier steps matter so much.

Revenue & Earnings from an EV Charging Station (Realistic Scenarios)

An EV charging station does not make money like a petrol pump on Day 1.
Earnings depend heavily on location, charger speed, and daily usage.

Let’s walk through realistic scenarios, not best-case fantasies.

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How EV Charging Stations Make Money

Revenue comes from per-unit or per-session charging fees.

In India, most public stations charge:

• ₹12–₹20 per unit (kWh) for AC charging
• ₹18–₹25 per unit (kWh) for DC fast charging

Some also add:

• Session fees
• Idle fees (if vehicle blocks charger)
• Monthly plans for fleets

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Scenario 1: Small but Busy Urban Location (Conservative)

Setup

• 1 × DC Fast Charger (60 kW)
• 1 × AC Charger
• Location: Mall / office area / petrol pump

Daily usage

• 6–8 vehicles per day
• Average bill per vehicle: ₹250–₹300

Monthly revenue
₹250 × 7 vehicles × 30 days
👉 ₹52,000 – ₹60,000

Monthly expenses

• Electricity
• Software & maintenance

👉 Net profit: ₹20,000 – ₹30,000 per month

This is common in the first 6–12 months.

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Scenario 2: Good Highway or Fleet-Linked Location (Balanced)

Setup

• 1 × DC Fast Charger (60 kW)
• 1–2 AC Chargers

Daily usage

• 10–15 vehicles per day
• Average bill: ₹300–₹400

Monthly revenue
₹350 × 12 vehicles × 30 days
👉 ₹1,20,000 – ₹1,30,000

Net profit
After expenses
👉 ₹40,000 – ₹60,000 per month

This is where most well-located stations settle.

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Scenario 3: Fleet-Dominated Location (Best Stability)

Setup

• DC fast chargers
• Tie-up with taxi or delivery fleet

Usage

• Predictable daily charging
• Higher volume, lower marketing effort

Monthly profit
👉 ₹60,000 – ₹1,00,000+

Margins are stable, though per-unit pricing may be slightly lower.

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What Impacts Earnings the Most?

1️⃣ Charger Speed
Fast chargers earn more per hour.

2️⃣ Location Behavior
Places where vehicles must stop win.

3️⃣ Repeat Users
Fleet tie-ups beat random walk-ins.

4️⃣ Power Cost Management
Lower electricity cost = higher margin.

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Realistic ROI Timeline

Let’s be honest.

If your post-subsidy investment is ₹4–5 lakh:

• Conservative ROI: 18–24 months
• Good location ROI: 12–18 months
• Fleet-backed ROI: 10–15 months

⚠️ Avoid anyone promising “6-month recovery”.

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Important Reality Check

EV charging is:

• Semi-passive, not fully passive
• Infrastructure-backed, not hype-driven
• A long-term play, not a quick flip

Returns improve as:

• EV adoption increases
• Repeat users grow
• Charger utilization improves

Smart Tips to Increase Profit from an EV Charging Station

Once your EV charging station is live, profit does not depend only on the charger.
It depends on how well you use the waiting time, space, and repeat behaviour of EV users.

Here are smart, realistic ways to improve earnings—without heavy investment.

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1. Use the Waiting Time to Earn Extra

Fast charging still takes 20–40 minutes.
That waiting time is an opportunity.

Simple add-ons that work:

• Tea / coffee counter
• Packaged snacks
• Clean restroom
• Small convenience store

You’re not trying to run a café.
You’re just making the stop useful and comfortable.

💡 Even small add-ons increase per-visitor value and footfall.

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2. Tie Up with Fleet Operators (Most Stable Income)

Random walk-in users are unpredictable.
Fleet vehicles are not.

Try partnerships with:

• Taxi aggregators (Ola, Uber, BluSmart)
• Delivery companies
• Corporate EV fleets

Why this matters:

• Fixed daily usage
• Lower marketing effort
• Predictable revenue

📌 Many profitable stations survive only because of fleet tie-ups.

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3. Add Fast Chargers First, Not Later

Many operators start with only AC chargers to save money.

This slows growth.

Fast chargers:

• Attract more users
• Increase turnover per day
• Justify premium pricing

💡 One DC fast charger can earn more than 2–3 slow chargers combined.

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4. Get Listed Everywhere (Visibility = Usage)

Your station must be easy to find.

List it on:

• Google Maps
• EV charging apps
• OEM platforms (Tata, MG, Hyundai, etc.)

Add:

• Clear signboards
• Working hours
• Pricing transparency

If users can’t find you easily, they won’t come—even if they need charging.

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5. Offer Simple Subscription or Loyalty Plans

This works especially well for:

• Daily commuters
• Office-area stations
• Fleet users

Examples:

• Monthly charging plans
• Discounted night charging
• Loyalty points or cashback

This creates repeat behaviour, which is the foundation of long-term profit.

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6. Control Electricity Cost (Silent Profit Killer)

Electricity is your biggest recurring expense.

Smart ways to manage it:

• Choose the right tariff category
• Avoid peak-hour wastage
• Plan charging slots for fleets

Some operators later add solar panels to reduce daytime costs.

You don’t need solar from Day 1—but keep future expansion in mind.

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7. Keep Chargers Reliable (Downtime = Lost Money)

A charger that’s frequently down:

• Loses trust
• Loses repeat users
• Loses app rankings

Always:

• Choose OEMs with strong service support
• Take AMC seriously
• Fix issues fast

💡 Reliability builds reputation faster than discounts.

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8. Start Small, Expand with Usage

Don’t overbuild on Day 1.

Start with:

• 1 DC charger
• 1–2 AC chargers

Track usage patterns.

Expand only when:

• Utilisation is consistently high
• Power availability is confirmed

This keeps risk low and ROI healthy.

Final Conclusion: Is Starting an EV Charging Station in India Worth It?

Starting an EV charging station in India is not a shortcut to quick money—and that’s exactly why it’s a serious opportunity.

With government support under the PM E-DRIVE scheme, the entry barrier is lower than ever. What once required heavy capital can now be started with careful planning, the right location, and a realistic mindset.

This business works best for people who:

• Think long term, not overnight
• Choose locations where vehicles already stop
• Understand basic power and infrastructure planning
• Are willing to operate patiently in the first year

It may not be ideal if you:

• Expect guaranteed or instant returns
• Want a fully passive income from Day 1
• Ignore power feasibility and location behaviour

EV adoption in India is still in its early growth phase. Charging infrastructure will grow slowly, then suddenly. Stations that are set up correctly today are the ones most likely to benefit as usage scales over the next few years.

If you approach this as a real business, not a subsidy chase, an EV charging station can become a stable, future-ready income source.

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