setting up charging infrastructure for electric vehicles do not require any
separate license for electricity transmission, distribution or trading,
the power ministry
has said in a clarification.
The ministry issued the clarification to douse speculation over whether the
activity of EV charging through batteries falls under sale and purchase of
power, citing provisions of the Electricity Act 2003.
Section 2 of the Electricity Act defines a consumer as any person who is
supplied with electricity for his own use and includes any persons whose
premises are for the time being connected for the purpose of receiving
electricity whereas trading is defined as procurement of electricity for resale
The charging of battery essentially involves utilization of electrical energy
for its conversion to chemical energy, which gets stored in the battery. Thus,
the charging of the battery of an electric vehicle by a charging station
involves a service requiring consumption of electricity by the charging station
and earning revenue for this purpose from the owner of the vehicle, the
It added that the activity does not in any way include the sale of electricity
to any person as the electricity is consumed within the premises owned by the
charging station, which may be connected to the distribution system or
otherwise for receiving electricity. By the same logic, the activity does not
involve further distribution or transmission of electricity.
"It is clarified that during the activity of charging of battery for use
in electric vehicle, the charging station does not perform any of the
activities namely transmission, distribution or trading of electricity, which
require licence under the provisions of the Act, hence the charging of
batteries of electric vehicles through charging station does not require any
licence under the provisions of the Electricity Act, 2003," the statement
The Electricity Act, 2003 was brought into force with effect from 10th June
2003, which as per section 12 requires a license to be obtained for the
activities of transmission, distribution or trading in electricity.
Recently, the issue of charging of batteries of electric vehicles has been
deliberated at various forums as to whether or not charging stations would be
required to obtain a license under the Act, the ministry said. The matter has
been examined in detail in consultation with various stakeholders including
Central Electricity Authority.
This move is bound to encourage many
companies choosing to set up such an infrastructure; besides, this initiative
will positively impact on the efforts to go green taken by the government.;
this timely strategic act will help thus take a long stride towards achieving
the goal of “ Green”.