Battery swapping companies hail Ministry of Power’s new amended guidelines
The development comes as a shot in the arm for fleet operations and logistics players, as last-mile delivery companies increasingly incorporate EVs into their fleet for deliveries.
The Ministry of Power has laid out updated guidelines on installing and operating battery swapping and charging infrastructure last week to fast-track the adoption of electric vehicles (EVs) in the country.
Moreover, it has amended the Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure, published in 2024, to extend now to battery-swapping players.
This means that, among other provisions, the tariff for supplying electricity to EV battery charging and swapping stations shall be a single-part tariff, which will not exceed the average cost of supply till March 2028.
Commenting on the updated guidelines, Siddharth Kabra, Founder and CEO of VoltUp, said, "These guidelines are a critical step in addressing key barriers to EV adoption, including range anxiety, downtime, and high upfront costs. By promoting affordable electricity tariffs and integrating renewable energy sources, the policy fosters an environment ripe for private sector participation."
"Moreover, the focus on battery-to-grid (B2G) integration and smart charging technologies highlights the potential for battery swapping to contribute to grid optimisation and enhance renewable energy use," he added.
Additionally, the order stated that owners of battery charging stations and battery swapping stations would be permitted to use an existing electricity connection with or without seeking an increase in the connected load for charging swappable batteries.
It added that battery swapping and charging stations may deploy liquid-cooled swappable batteries for larger vehicles such as trucks and buses.
The development comes as a shot in the arm for fleet operations and logistics players, as last-mile delivery companies increasingly incorporate EVs into their fleet for deliveries.
“The Ministry’s forward-thinking approach, including streamlined connections with distribution licensees and open access, will be a major catalyst in scaling the battery-swapping ecosystem. By recognising battery swapping stations for specific groups like fleet operators and organisation-linked EV owners, the guidelines ensure tailored solutions while maintaining public access for all,” Kabra added.
The order comes at a time when there is increased activity in the battery-as-a-service sector (BaaS), where customers can pay for the vehicle upfront but rent the battery separately on a subscription or lease, reducing the upfront costs of owning an EV.
“Battery swapping by the means of upfront cost reduction and overall total cost of ownership will help democratise the adoption of EVs. Subsequently, further investments in this sector will facilitate the deployment of swap stations in tandem with point charging stations, which will give users a variety to choose from based on their use cases,” said Pramod Sharma, Chief Operating Officer of the Heavy Electric Vehicle arm of SUN Mobility.
Muthu Subramanian, MD and General Manager of Yuma Energy, said, “The guidelines lay down a robust framework for setting up a safe and effective BaaS network for accelerating EV adoption, and can go a long way in helping India reach its clean mobility goals."
The order comes amidst the rising EV adoption in India, helped by regulatory support and increasing environmental concerns. The country has established an objective to increase the proportion of EV sales to 30% in private cars, 70% in commercial vehicles, 40% in buses, and 80% in two-wheelers and three-wheelers by 2030.
In line with this goal, the government has doubled down on developing a robust charging infrastructure to support this goal, taking steps to eliminate range anxiety, one of the main hurdles to widespread EV adoption.
"The Ministry of Power’s recognition of battery swapping as a viable alternative to conventional charging marks a significant step forward in India’s electric mobility journey. These guidelines establish a strong foundation for the EV ecosystem, reinforcing battery swapping’s potential to overcome traditional charging barriers and drive widespread EV adoption. This move aligns with India’s sustainable mobility vision, and we’re optimistic about its impact on accelerating the EV transition,” said Pulkit Khurana, Co-founder of Battery Smart.
(Disclaimer: The copy was updated to correct the name of a spokesperson)
Edited by Suman Singh
