Karnataka drops PPP model for EV charging stations, hands over project to Bescom

In a significant shift, the Karnataka government has scrapped its plan to establish 2,500 EV charging stations across the state under the public-private partnership (PPP) model, following consistent failures to attract private bidders. Instead, the responsibility has now been handed over to the Bangalore Electricity Supply Company (Bescom), which will independently set up 100 EV charging stations using state funds.

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This decision was officially notified via a government order issued on June 16, after a detailed report from Bescom Managing Director N. Shivashankar, who cited poor participation from private entities despite multiple tender calls.

Shivashankar revealed that six rounds of tenders were floated, but none received meaningful interest. The main challenges, according to his report, included lack of coordination from government departments in facilitating land acquisition, limited electric vehicle (EV) usage outside of Bengaluru, and low investor confidence in smaller markets. Even previous attempts, such as the plan to build 585 stations in nine districts in 2023-24 and another to install 605 stations in 22 districts in 2024-25, ended in failure due to lack of response.

While Karnataka currently leads the country with over 5,879 EV charging stations, more than 4,000 of which are in Bengaluru alone, Shivashankar noted that penetration of electric vehicles remains low in most other parts of the state, making it unattractive for private investors.

As a result, the state has decided to move away from the PPP model for now. Bescom will invest Rs 35 crore from its own funds to implement the revised plan. The goal is to continue building infrastructure that encourages EV adoption despite private sector hesitancy.