
Karnataka Budget 2026: 1,250 EV Charging Stations to be Developed Under PM-E Drive Initiative
Karnataka Government Unveils Ambitious Energy and Infrastructure Plans
The Karnataka government has announced plans to develop a comprehensive energy infrastructure, with a focus on accelerating electric vehicle (EV) adoption and promoting renewable energy.
Electric Vehicle Charging Infrastructure The government plans to set up 1,250 EV charging stations in public places, supported by power distribution companies (ESCOMs), at an estimated cost of Rs 777 crore. This initiative is part of the PM-E Drive scheme, aimed at boosting EV adoption.
Battery Energy Storage Systems (BESS) To strengthen grid stability and manage peak demand, the government will install an additional 2,000 MWh BESS capacity at Huliyur, Pavagada, and Kushtagi substations during 2026-27, at an estimated cost of Rs 3,400 crore. This project builds on the state's existing 1,000 MWh BESS capacity, implemented in 2025-26.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Renewable Energy Initiatives The budget proposes the "Mukhya Mantri Saura Krishi Yojane" scheme, under which 3,000 MW of solar power plants will be commissioned at KPTCL substations using the Renewable Energy Service Company (RESCO) model, at an estimated cost of Rs 10,500 crore.
Infrastructure and Research Facilities The budget also allocates funds for various infrastructure and research facilities, including:
- A 100-acre vehicle scrapping facility in Chikkaballapur district
- A 100-acre advanced construction and infrastructure testing facility in Mandya district, in collaboration with the Automotive Research Association of India, which will invest Rs 500 crore
- An aerospace common facility centre at the KIADB Aerospace Park, with a project cost of Rs 30 crore
- A renewable energy incubation centre, in collaboration with IIM Bangalore, IISc, and the University of New South Wales, Australia, at an estimated cost of Rs 20 crore, aimed at encouraging startups in the renewable energy sector.
Investor Takeaway
Investors should be aware of the Karnataka government's plans to invest in EV charging infrastructure and renewable energy projects.
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