By Abhijeet Sinha, Program Director, National Highways for Electric Vehicles
India is hitting the accelerator on its journey towards clean, sustainable transportation. At the heart of this transformation is the National Highways for Electric Vehicles (NHEV) initiative. Spearheaded by the Ease of Doing Business (EoDB) division, the NHEV is redefining the future of mobility by converting key national highways into fully equipped electric corridors. By combining electric vehicle (EV) infrastructure with strong public-private partnerships (PPPs), the initiative is not only modernising the way India moves but is also creating a financially sustainable model for e-highways that is ready to scale nationwide.
“India’s e-highway vision under the NHEV initiative is not just about electrifying roads – it is about creating a resilient ecosystem that blends technology, finance and sustainability. Through our tech trials and the Annuity Hybrid E-Mobility (AHEM) model, we are setting a global precedent in how electric mobility infrastructure can be scalable, inclusive and economically viable.”
Current progress
The NHEV is set to transform 26 national highways across 14 states into fully functional e-highways, equipped with 264 charging stations, 528 battery swapping points and 548 dedicated roadside assistance (RSA) vehicles to support seamless EV travel. The land acquisition process has already begun, starting from the southern region, marking a critical step towards infrastructure roll-out. In a strategic move to ensure nationwide representation and scalability, three 3G energy stations are being finalised in each of the four zones: north, south, east and west. These stations will serve as benchmark models for future development, integrating advanced charging infrastructure with energy-efficient and commercially viable designs.
Lessons from Delhi–Agra, Delhi–Jaipur and Chennai–Trichy tech trials
The NHEV’s initiative was significantly influenced by three pivotal tech trials conducted on major corridors: Delhi–Agra, Delhi–Jaipur and Chennai–Trichy.
Chennai–Trichy trial (2024): This major trial, conducted along the 332 km-long Chennai–Trichy corridor, focused on freight transport, comparing diesel, liquefied natural gas and EVs. It assessed cost per tonne-km, the total cost of ownership for a fleet of 10 electric buses and ZET trucks, and break-even periods. This trial provided critical data for understanding operational costs, efficiency and financial feasibility in commercial freight applications. It served as a foundation for evidence-based policy recommendations, directly influencing the government of India’s decision to earmark Rs 5 billion for e-truck deployment. Complementing this, the EoDB division committed an additional Rs 5 billion towards viability funding – creating a Rs 10 billion support framework. This combined investment is expected to enable the roll-out of around 810 electric trucks, signalling a massive leap towards decarbonising India’s freight movement.
Delhi–Jaipur Trial (2022): Initiated on September 25, 2022, this trial expanded the scope by covering 272 km and testing operational assumptions across state boundaries. The trial revalidated the AHEM framework and assessed commercial viability under more complex conditions. Fare structures for electric buses and EV rentals were established, with bus tickets ranging from Rs 450 to Rs 550. This cost will shoot up to Rs 1,000 after upgradation of all airline services. The trial also estimated that each EV could reduce carbon emissions by up to 4,500 metric tonnes per year. Furthermore, the cost of converting 1 km of road into an e-highway was calculated between Rs 10 million and Rs 220 million, depending on land cost, terrain and infrastructure requirements. The Delhi–Jaipur trial featured MG’s ZS EV and Comet models, which participated in real-world testing. Following the trial, the ZS EV was found to be useful for battery-as-a-service retail operations, marking a strategic move towards flexible and affordable EV ownership.
Delhi–Agra trial (2020): Launched on November 25, 2020, this 225 km trial along the Yamuna Expressway tested the AHEM model. Over a 30-day period, the trial assessed infrastructure readiness, economic viability and the user experience. Key insights included the effectiveness of a 30-minute emergency EV backup mechanism and the potential of battery subscription models to reduce EV ownership costs by up to 30 per cent. Infrastructure utilisation exceeded 30 per cent of installed capacity, indicating healthy usage patterns even at an early stage of adoption. Financial modelling suggested that charging stations could reach break-even within three years, even with a modest 3 per cent EV adoption rate.
Role of hybrid PPPs in driving e-highway expansion
A defining strength of the NHEV initiative is its innovative financing model – the AHEM model, derived from the Ministry of Road Transport and Highways’ Hybrid Annuity Model. This model balances capital investment among four stakeholders: 30 per cent by the public sector, 30 per cent by the private sector, 30 per cent by citizen investors and 10 per cent by state-level e-highway operators.
This structure ensures risk distribution, localised control and sustainable returns, making e-highway infrastructure bankable and scalable. It fosters a collaborative ecosystem where the public sector ensures regulatory support, private players handle operations and technology, and citizens participate through capital or land contributions in exchange for annuity-linked returns.
Challenges in scaling EV charging infrastructure
Despite significant progress, several challenges persist in scaling EV charging infrastructure:
Technical standards: The setup, detailing and even micro-detailing of a petrol pump are clearly defined in the public domain, but standard norms and other relevant details for setting up a charging station are still unknown and confusing. The absence of uniformity has led to inconsistencies in infrastructure quality and delays in project execution.
Asset financing: While there has been ample financial support for the concept and policy dialogues, securing financing at an individual entrepreneur or small and medium enterprises level remains a struggle. The lack of historical revenue data, undefined business models and apprehensions around EV adoption rates have made banks and non-banking financial companies hesitant.
Asset monetisation: Everyone understands that infrastructural investment is a high capital expenditure (CapEx) business, and the CapEx recovery periods of projects such as petrol pumps or metro rails are clearly defined and calculated. However, the break-even for setting up charging stations remains unknown, leaving potential investors uncertain and cautious.
The way forward
Tech trials under the NHEV initiative must be replicated regionally to gather localised data on traffic, charging demand and energy costs. These findings can then help in arriving at standardised break-even analysis templates for different city, highway and freight corridors. Additionally, alternative revenue models – including digital advertising, ancillary services and carbon credit monetisation – should be integrated into project proposals to improve financial feasibility.
Nevertheless, India’s ambitious electric mobility goals are increasingly becoming a reality through programmes such as the NHEV initiative. By addressing infrastructural, financial and operational challenges with pragmatic policy improvisations and pioneering public-private partnership models, the NHEV is setting a national benchmark for sustainable, scalable and bankable e-highway networks. It has made it easy now to draw a comparison between petrol pumps and EV charging stations.
Petrol pumps easily get loans as the business is well-defined with clear break-even timelines, while EV stations find it hard to get loans and investors are concerned about asset financing, asset monetisation and uniformity of technical standards. Earlier, their profitability was unknown, but the NHEV initiative has shown that each EV station can now break even in four-five years.
The success of tech-trials, innovative financing frameworks and ancillary revenue integration signal a promising future for e-highways, providing both an environmental as well as economic opportunity. As adoption accelerates and infrastructure matures, the NHEV model could serve as a blueprint for other emerging economies seeking to electrify their highways sustainably.
