UP becomes first state to offer subsidy for upstream infra in EV charging stations

As per state govt, it is for the first time in India that eligible fixed capital investment—required to avail of a capital subsidy of up to ₹10 lakh per unit —will now also cover upstream infrastructure costs during the policy period

In a major decision to give a boost to electric vehicles (EV), the Uttar Pradesh government on Monday included the upstream installation costs of charging stations under its EV subsidy framework. The decision was taken at the high-level empowered electric vehicle committee (HLEEVC) meeting chaired by chief secretary Manoj Kumar Singh.

For the EV charging infrastructure, the ‘upstream installation costs’ refer to the expenses associated with setting up the supporting infrastructure needed to deliver electricity to the charging stations themselves. (For Representation)

According to the state government, it is for the first time in India that eligible fixed capital investment—required to avail of a capital subsidy of up to ₹10 lakh per unit —will now also cover upstream infrastructure costs during the policy period.

This marks a significant step toward enhancing the viability and scalability of public charging stations (PCS). Invest UP is the nodal agency for implementing this policy in the state. The policy amendment under the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy–2022 is expected to address a key challenge faced by charge point operators: the inability to meet the minimum fixed capital investment threshold of ₹25 lakh due to the exclusion of upstream infrastructure costs from eligible investments.

The policy offers attractive incentives for charge point operators setting up charging stations in the state. Charging stations are eligible for a one-time capital subsidy on fixed capital investment—covering expenses on building, civil works, chargers, upstream infrastructure, battery equipment, utilities, tools, and other related assets (excluding land costs)—at a rate of 20%, subject to a maximum of ₹10 lakh per unit.

With this decision, Uttar Pradesh has become the first state in the country to offer subsidies for upstream infrastructure in EV charging stations, making the ecosystem more investment-friendly and accelerating EV adoption across the state, said Invest UP on Monday.

Uttar Pradesh, the third-largest automobile market in India, has recorded over 12,72,206 registered electric vehicles. To sustain this growth, more than 450 charging stations are being integrated into a GIS dashboard, 740+ electric buses have been deployed on key routes, and 116 green routes across 15 cities have been identified for the upcoming phase of EV rollouts.

Upstream installation costs

For the EV charging infrastructure, the ‘upstream installation costs’ refer to the expenses associated with setting up the supporting infrastructure needed to deliver electricity to the charging stations themselves.

These costs are distinct from the direct cost of the charging equipment (chargers, connectors, etc) and can include expenses related to grid upgrades, transformers, cabling, and other electrical components.