Hyderabad: The Union Power Ministry has clarified in a recent circular that charging stations for electric vehicles will not need licences.
In the circular issued to all chief secretaries, the ministry has said charging stations do not come under the Electricity Act 2003, which stipulates that a licence is needed for transmission and distribution of, or trading in, electricity.
There have been recent debates on the issue of whether charging stations for electric vehicles are required to obtain licences.
Clarifying the issue, the ministry has said the charging of a battery essentially involves the conversion of electrical energy to chemical energy, which is stored in the battery.
Thus, the charging of an electric vehicle at a charging station involves the consumption of electricity by the station only, which earns revenue from the owner of the vehicle.
The activity does not in any way include the sale of electricity, since the electricity is consumed within the premises owned by the station.
By the same logic, the activity does not involve further distribution or transmission of electricit, it said.
