Invest in Credit Risk Mutual Fund or not?

With electric-vehicles gaining popularity, the e-charging station has emerged as a profitable business where an individual can earn a hefty sum. Today, there are many options available for setting up an e-charging business. At present, the profit in this business may seem to be low, but in the next 5-10 years, when more e-vehicles enter the market, the business can book profits up to Rs 20-25 lakh annually.

Earlier, petrol and CNG filling station were considered the safest profitable business. But as it requires a large capital and land purchase, the business takes a lot of time to start.

Government rules

There are not many rules in the government’s EV policy regarding e-charging stations. Those who do not have land can also open an e-charging station. An e-charging station should have five charging units, one transformer, and an electricity connection. There should be enough space for the movement and parking of vehicles. A charging unit should have a space of six feet and parking space for cars. One or two charging units are enough for small units.

Apart from this, two workers are required out of which one will be trained to help the customers. The government also gives subsidies for setting up an e-charging station. The subsidy varies from state to state.

Faster charging unit

A fast-charging unit should be of a CCS 50 kWh capacity. The charging demonstration machine should also be installed with the same capacity. The low charging unit i.e. type 2 AC should have a capacity of 22 kWh. A fast-charging unit charges a car battery from 0% to 80-90% in 40 minutes while a low unit takes seven to eight hours. Fast units will cost up to Rs 15 lakh, low units are available for Rs 2-3 lakh. The government is also bringing smart units that will cost around Rs 5,000-6,000.

How to start a business

To start an e-station business, a person can start from a small piece of land for smaller vehicles. “You can charge two and three-wheelers and e-car easily in these stations. For bus and truck, one will require a larger space,” an expert from an EV company said.

Land- not an issue

Individuals who do not possess a land or big investment budget can also start an e-charging station business. Many startup companies are collaborating with landowners and investors to do business. Charging units are covered by insurance and to save on electricity costs, it can be run on solar energy.

Profitable business

About Rs 20 lakh will be required for charging units, Rs 8 lakh for electricity transformer apart from other expenses on branding, civil and hiring staff. Overall, a centre may see an expenditure of about Rs 30 lakh, out of which about Rs 23-24 lakh will be one-time investment.

If a charging unit with two 50 kwh and three 22kwh chargers works for 18 hours a day, the total units will be 2,988. With a margin of Rs 2.5 per unit, the station will earn Rs 7,470 per day and over Rs 27 lakh per year.