How to Start an EV Charging Station Franchise in India 2026

India's electric vehicle market is creating new demand for charging infrastructure at highways, commercial properties, offices, hotels, residential developments, fuel stations and fleet hubs. For entrepreneurs and property owners, this creates a potential business opportunity—but an EV charging station should not be treated as a guaranteed-profit or fixed-return investment.

Profitability depends heavily on charger utilisation, location, electricity connection costs, sanctioned load, land arrangements, equipment cost, uptime, service charges, financing and the commercial agreement with the charging-network operator.

This 2026 guide explains the current EV charging rules in India, charger types, government support under PM E-DRIVE, approximate investment references and which major charging networks currently publish partnership or franchise opportunities.

Do You Need a Government Licence to Open an EV Charging Station?

Under the Ministry of Power's Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024, setting up and operating an EV charging station is a de-licensed activity.

This means you do not need a separate electricity-distribution licence simply to operate an EV charging station. However, that does not mean the business is free from regulatory requirements.

A charging station still needs to comply with applicable requirements relating to:

• Electricity connection and sanctioned load
• DISCOM requirements
• BIS-compliant EV charging equipment
• CEA electrical-safety and connectivity requirements
• Proper metering
• Electrical Inspectorate requirements where applicable
• Local building and fire-safety requirements
• Land-use and premises permissions
• PESO requirements where applicable at petrol pumps or gas stations
• State EV policies and State Electricity Regulatory Commission rules

Official source: Ministry of Power, Government of India

Current EV Charger Types in India

The old terminology of simply calling chargers “Level 1, Level 2 and Level 3” can be misleading in an Indian business guide. The Ministry of Power's current guidelines specify charger power levels and Indian Standards according to vehicle type.

For four-wheelers and heavy vehicles supported under the PM E-DRIVE public-charging guidelines, CCS-II is specified for relevant DC charging applications.

Which Charger Should a Small Entrepreneur Choose?

The answer depends more on customer dwell time than on buying the most powerful charger available.

11 kW or 22 kW AC charging can make sense at hotels, offices, restaurants, shopping centres and other locations where vehicles remain parked for a significant period.

30–60 kW or similar DC charging can be more appropriate for urban public charging locations where drivers expect faster turnaround.

100 kW and higher DC charging becomes more relevant for busy highway sites, major transit locations, fleets and locations with sufficient electrical infrastructure and traffic.

Installing a very high-powered charger at a low-utilisation location can increase capital expenditure without automatically increasing revenue.

Current EV Charging Franchise and Partnership Options

Not every charging network uses the same business model. Some sell or support investor-owned franchises, while others focus on hosting arrangements or direct corporate partnerships.

Business models, investment requirements and acceptance of new sites can change. Always use the company's official partnership page rather than paying an individual claiming to offer an EV charging franchise.

Official Provider Pages

• Tata Power EZ CHARGE Franchise
• ChargeZone Franchise
• Statiq Partner With Us
• Jio-bp Partner Opportunities
• Ather Grid Host Information

How Much Does an EV Charging Station Cost?

There is no reliable single figure such as “₹2 lakh for Level 1, ₹8 lakh for Level 2 and ₹15 lakh for Level 3.” Charger power alone does not determine the total project cost.

A commercial charging project can include:

• EV charger or EVSE hardware
• Transformer, if required
• LT/HT cables
• Distribution panels
• Protection equipment
• Metering
• Sanctioned-load enhancement
• Civil work
• Parking development
• Charger-management software
• Networking and payment systems
• Installation and commissioning
• Signage and branding
• Land or lease costs
• Maintenance
• Applicable taxes and statutory expenses

Government Benchmark Costs: Useful Reference, Not a Retail Price List

The PM E-DRIVE operational guidelines publish benchmark costs for calculating eligible subsidies. These figures can provide a useful reference point, but they should not be presented as guaranteed market purchase prices or complete project quotations.

Important: These are PM E-DRIVE benchmark values used for subsidy calculations, not quotations from charger vendors. Your actual project may cost less or substantially more depending on the electrical infrastructure, site, equipment brand, land, installation and commercial model.

As a separate market reference, ChargeZone's official franchise page currently advertises its Fast Charging franchise from ₹20 lakh, with charger options including 30 kW, 60 kW and 120 kW DC. That figure relates specifically to ChargeZone's advertised franchise programme and should not be treated as the average price for every EV charging station in India.

What Is PM E-DRIVE Support for Charging Stations?

The Government's PM Electric Drive Revolution in Innovative Vehicle Enhancement, or PM E-DRIVE, includes financial support for EV public charging infrastructure.

The EV public charging station component has an allocation of ₹2,000 crore. The broader PM E-DRIVE scheme has been extended until 31 March 2028, subject to the scheme's available funds and applicable component rules.

However, a private entrepreneur should not assume that opening a charging franchise automatically produces a government subsidy.

Under the operational guidelines for EV Public Charging Stations, eligible proposal-submitting entities include:

• Government of India Ministries
• Central Public Sector Enterprises
• States and Union Territories
• State/UT PSUs and designated nodal agencies

Those entities may establish and operate charging infrastructure themselves or engage Charge Point Operators.

PM E-DRIVE Charging Subsidy Categories

The operational guidelines currently provide different support depending on the location category.

• Category A: Eligible government premises providing unrestricted public access can receive support of up to 100% of eligible upstream infrastructure and EVSE benchmark/actual cost, as applicable under the guidelines.
• Category B: Certain government-controlled public locations such as railway stations, AAI-operated airports, public-sector OMC retail outlets, bus stations, metro stations, municipal parking and eligible highway locations can receive up to 80% support for upstream infrastructure and 70% for EVSE.
• Category C: Other locations such as streets, shopping malls, market complexes and other qualifying city/highway locations can receive support of up to 80% of eligible upstream infrastructure.
• Battery Swapping/Battery Charging Stations: The guidelines provide support for eligible upstream infrastructure according to their category.

Subsidy is calculated against eligible benchmark or actual cost, whichever is lower, and remains subject to scheme approval and fund availability.

Official PM E-DRIVE source: PM E-DRIVE Scheme Guidelines

Electricity Connection and DISCOM Requirements

The electricity connection is one of the most important parts of an EV charging project.

The Ministry of Power guidelines state that a Charge Point Operator can apply to the local distribution licensee for an electricity connection.

The national guidelines specify maximum connection timelines under the Electricity (Rights of Consumers) Rules, subject to applicable conditions:

• Metropolitan area: 3 days
• Other municipal area: 7 days
• Rural area: 15 days
• Rural hilly area: 30 days
• Where distribution-main extension or a new substation is required: up to 90 days

Actual commissioning can still take longer if your application is incomplete, site work is pending, a transformer or upstream network upgrade is needed, or statutory safety requirements remain incomplete.

The guidelines also require DISCOMs to facilitate a single-window system for EV charging connections.

For a separate EV-charging connection, the guidelines provide for an LT connection up to 150 kW, subject to the applicable regulatory and technical conditions.

Documents and Approvals You May Need

The Ministry of Power's model DISCOM application process contains an indicative list of documents and approvals. Exact requirements can vary by State, DISCOM and location.

Depending on the project, these may include:

• Land deed, lease or other right-to-use documentation
• Entity or company registration documents
• PAN
• GST registration
• Authorised representative's identity proof
• Existing and proposed electrical-load details
• Charger capacity and connector details
• NABL-accredited type-test certificate for the EV charger
• Electrical Inspectorate safety clearance where applicable
• PESO approval where required for EV chargers installed at petrol pumps or gas stations
• Fire Department NOC where applicable, including specified basement installations

Check your local DISCOM, State Nodal Agency and local authority before purchasing equipment, because a site that cannot obtain the required load economically can become commercially unviable even if the land itself appears attractive.

EV Charger Safety Requirements

EV charging equipment cannot simply be any imported or locally assembled charger.

The Ministry of Power requires EV Supply Equipment to comply with the applicable BIS standards. Safety and connectivity must also comply with applicable Central Electricity Authority regulations.

A professional commercial setup should include:

• Correct electrical cabling
• Surge protection
• Circuit protection
• Earthing
• Fire-safety equipment
• Weather protection
• Clearly marked charging bays
• Instructions for users
• Digital billing and payment mechanisms for public stations
• Proper charger monitoring and maintenance

How EV Charging Pricing Works

The revenue model should not be described simply as “buy electricity at a commercial rate and sell it at a higher per-unit rate.”

Under the Ministry of Power's current framework, the total amount charged to the EV customer can include:

• Electricity-supply tariff as a pass-through cost
• Permitted service charge
• Applicable land-cost component
• GST

The electricity tariff for supply to EV charging stations is subject to the applicable regulatory framework. The Ministry of Power guidelines provide that the electricity-supply tariff should not exceed the Average Cost of Supply until 31 March 2028 and prescribe time-of-day treatment linked to solar and non-solar hours.

Current Central Service-Charge Ceilings

For conductive charging at Public Charging Stations and Community EV Charging Stations, the Ministry of Power guidelines currently specify the following service-charge ceilings, excluding applicable GST and land cost:

These are service-charge ceilings under the central guidelines and are subject to annual review. Applicable State regulatory requirements and commercial arrangements should also be checked.

Can an EV Charging Station Be Profitable?

It can generate a return in the right circumstances, but profitability is not guaranteed.

The most important factor is usually utilisation: how many kilowatt-hours your chargers actually deliver each day.

A ₹20 lakh or ₹30 lakh installation that receives very little traffic may perform worse financially than a smaller charger at a consistently busy location.

Important profitability variables include:

• Daily energy sold in kWh
• Charger uptime
• Number of charging sessions
• Service-charge revenue
• Land rent or revenue sharing
• Electricity and demand-related costs
• Maintenance and AMC
• Software/network charges
• Payment-gateway charges
• Franchise or CPO revenue sharing
• Loan interest
• Taxes

The Ministry of Power itself recognises that public charging stations may initially experience low utilisation and uncertain revenue, which is one reason its guidelines include measures intended to improve charging-station viability.

Do Not Assume a 3-to-5-Year ROI

A fixed claim such as “an EV charging station normally recovers its investment in three to five years” should not be used as a general promise.

Some charging providers publish their own indicative ROI expectations for particular franchise models. Those numbers are commercial estimates from the provider, not guaranteed industry returns.

Before investing, prepare at least three financial scenarios:

• Low utilisation
• Expected utilisation
• High utilisation

Calculate how many kWh must be sold each month to cover your fixed and variable expenses.

How to Select a Charging-Station Location

A good site is not merely a busy road. It must have both EV demand and suitable electrical infrastructure.

Potential locations include:

• Highways and expressways
• Wayside amenities
• Fuel stations
• Malls
• Hotels
• Restaurants
• Office parks
• IT parks
• Hospitals
• Public parking facilities
• Large residential communities
• Taxi and fleet hubs
• Logistics centres
• Bus and truck depots

Before signing a long lease, check:

• Existing EV traffic
• Nearby competing chargers
• Vehicle dwell time
• Existing sanctioned load
• Distance from the distribution network
• Whether transformer augmentation may be needed
• Entry and exit convenience
• Parking availability
• Visibility
• 24-hour accessibility where relevant
• Safety

Extra Revenue Opportunities

Where legally and commercially suitable, a charging site may also earn income from activities other than charging.

Examples include:

• Cafe or restaurant
• Convenience retail
• Paid parking
• Advertising
• Vehicle cleaning
• Fleet contracts
• Commercial-property footfall

These should be treated as separate businesses or revenue streams rather than assumed charging-station income.

Step-by-Step: Starting an EV Charging Business

Step 1: Identify the customer segment.
Decide whether you want to serve passenger cars, two-wheelers, fleets, buses or commercial vehicles.

Step 2: Shortlist locations.
Analyse EV traffic, parking time, nearby chargers and expected utilisation.

Step 3: Check electrical feasibility before committing to the site.
Ask the DISCOM about existing load, required sanctioned load, LT/HT supply and whether a transformer or distribution upgrade is likely.

Step 4: Choose the charger capacity.
Match the charger to the expected vehicles and dwell time instead of automatically choosing the highest-power charger.

Step 5: Compare business models.
Compare an independent CPO setup, investor-owned franchise, company-operated model and property-host arrangement.

Step 6: Request written commercial proposals.
Ask providers for hardware cost, installation, warranty, AMC, software fees, revenue share, payment settlement, uptime commitments and termination conditions.

Step 7: Confirm regulatory requirements.
Check DISCOM, electrical-safety, fire, local authority, land and any location-specific requirements.

Step 8: Install BIS-compliant equipment.
Use equipment complying with the applicable Indian standards and required type testing.

Step 9: Commission and integrate the station.
Complete metering, software, digital payments, customer support and charging-network integration.

Step 10: Measure utilisation.
Track kWh sold per charger, session count, uptime, average revenue, operating expenses and repeat users.

Questions to Ask Before Buying an EV Charging Franchise

• Who owns the charger?
• Who owns the electrical infrastructure?
• Who pays for the transformer?
• Who pays the DISCOM security deposit?
• Who chooses the customer charging price?
• What revenue share applies?
• Who pays for maintenance?
• What uptime does the company commit to?
• Who handles customer complaints?
• What happens if utilisation remains low?
• Can I exit the agreement?
• Who owns the charger after termination?
• Does the company guarantee any traffic—and if so, is that guarantee actually written into the contract?
• Is any claimed subsidy already sanctioned, or is it merely expected?

Major Risks to Consider

Low utilisation: EV adoption can grow while your particular location still receives insufficient charging traffic.

High electrical-infrastructure cost: Transformer, cable and network augmentation can substantially increase project cost.

Technology changes: Charging power and vehicle architectures continue to develop.

Competition: A new fast-charging hub near your site can affect utilisation.

Downtime: An unavailable charger earns nothing and can damage customer trust.

Commercial-contract risk: Revenue sharing, software fees, maintenance obligations and exit clauses can significantly affect returns.

Subsidy assumptions: Never build the business case around a subsidy that has not actually been approved for the project.

Official Government Sources

• Ministry of Power — EV Charging Infrastructure Guidelines
• PM E-DRIVE Official Portal
• PM E-DRIVE Operational Guidelines
• Bureau of Energy Efficiency — EV charging information and implementation support

Conclusion

Starting an EV charging station in India can be a viable infrastructure business, but it should not be marketed as a guaranteed-profit or automatically “future-proof” franchise.

The strongest projects usually combine a good location, sufficient EV traffic, affordable electrical infrastructure, the right charger capacity, reliable uptime and a sensible commercial agreement.

As of 2026, Tata Power EZ CHARGE, ChargeZone, Statiq and Jio-bp publish identifiable EV charging franchise, dealership or investor-partnership opportunities. Ather Grid also invites suitable businesses to host charging points, but its host arrangement is different from a normal investor-owned charging franchise.

Before paying any franchise fee or ordering a charger, first conduct an electrical feasibility study, obtain written investment and revenue terms from the provider, and check the latest Ministry of Power, PM E-DRIVE, State EV-policy and DISCOM requirements applicable to your site.

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