Bhel likely to be tendering agency for EV charging stations under PM E-drive

“With Bhel being the nodal agency for demand aggregation of EV charging stations, it is likely that it will also play a key role in tendering these charging stations to interested stakeholders,” said the first of the two persons cited earlier, both of whom spoke on the condition of anonymity.

As the nodal agency, price discovery would be a key function of Bhel in its new role in India’s evolving EV space, the second person said.

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Bhel’s stock ended little changed at ₹253.55 on the BSE on Friday.

This assumes importance as the PM E-drive scheme, the Centre’s marquee scheme to incentivize green mobility for consumers, has allocated about a fifth of its outlay— ₹2,000 crore—to subsidize electric vehicle charging stations.

Mint earlier reported about the heavy industries ministry working with the ministries of road transport and highways, civil aviation, and power to identify locations to set up these EV charging stations.

PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-drive) scheme, with a financial outlay of ₹10,900 crore, came into effect on 1 October 2024 and will remain in force until 31 March 2026. Its main aim is to accelerate the adoption of electric vehicles, establish charging infrastructure and build a robust EV manufacturing ecosystem in the country.

Under the scheme, the government plans to incentivize charging stations for electric two-wheelers, three-wheelers, buses and trucks. These chargers need to have a minimum capacity of 12 kilowatt for electric two- and three-wheelers, 60 kilowatt for electric four-wheelers and 240 kilowatts for electric buses and trucks.

The plan includes incentivizing 22,100 chargers for electric four-wheelers, 48,400 for electric two- and three-wheelers, and 1,800 for electric buses and trucks.

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The heavy industries ministry on 21 May said in a press statement that Bhel is being considered as the nodal agency for demand aggregation and for the development of a unified digital super app that will serve as a single platform for EV users across India.

“The app will feature real-time slot booking, payment integration, charger availability status and progress dashboards for tracking national deployment under the PM E-Drive scheme. Bhel will also coordinate with states and ministries to compile and evaluate proposals for charger installations,” the statement on 21 May said.

Queries emailed to the ministry of heavy industries and Bhel on Friday remained unanswered till press time. 

According to the procedure for setting up EV chargers under the PM E-drive scheme, state governments as well as central ministries can submit a bid for EV charging stations to the heavy industries ministry after aggregating demand and conducting feasibility studies. This will be done by a nodal agency appointed by the state government or central ministry.

Demand aggregation refers to gathering demand from stakeholders to determine the volume of EV charging stations that will be installed by states or by central ministries.

As per guidelines for installation of EV charging stations, availability of land is a major concern. “In addition to charger capex and the corresponding need for upstream infrastructure, one major component is land availability. Access to land and high land rentals present major hurdles in deploying charging infrastructure,” said the guidelines.

State governments and central ministries which seek to install charging stations “may provide access to land at suitable locations for EV charging stations by coordinating with various stakeholders under their control”, the guidelines said. This would incentivize charge-point operators and other stakeholders to install chargers in locations with high rents, according to the guidelines.

State governments and central ministries should communicate their demand of EV charging points to the ministry of heavy industries for approval. After being approved, the nodal agency which gathered demand and conducted feasibility studies will begin the tendering process.

As per the guidelines, the nodal agency appointed by the state government or central ministry can decide who will be the tender inviting authority (TIA). The nodal agency itself can also be the TIA, but can appoint any other agency on its behalf.

The tender will include identified locations for EV charging stations, minimum charger configurations, available area and the bidding parameters to be followed. After successful bidding by charge-point operators and review by ministry of heavy industries, subsidy for charging stations will be disbursed in installments.

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Under the PM E-drive scheme, the government will fund up to 80% of the upstream costs of setting up an EV charging station. But under special circumstances, the government may fund the full cost of a charging station, according to the guidelines.

India’s green mobility push has gained momentum, but continues to face hurdles related to EV charging infrastructure. “The Electric Vehicle (EV) movement is gaining undeniable momentum, driven by consumer interest in sustainability and long-term cost benefits. Yet, barriers such as charging infrastructure, upfront costs and battery longevity continue to influence consumers,” said Rajat Mahajan, partner and automotive sector leader, Deloitte India, in April at the launch of the 2025 Global Automotive Consumer Study—India. The study showed that 36% of Indian consumers surveyed prioritized fast-charging for EVs.