Has the Centre Extended the PM E-Drive Scheme for E-Buses, Trucks, and Ambulances?
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Synopsis
The Central government has just confirmed an extension of the PM E-Drive scheme for electric buses, ambulances, and trucks until March 2028. This move aims to bolster the transition to eco-friendly transport solutions and tackle air pollution, while funding remains capped at Rs 10,900 crore. Find out more about this significant policy change!
Key Takeaways
- PM E-Drive scheme extended to March 2028.
- Funding remains capped at Rs 10,900 crore.
- Maximum incentive of Rs 9.6 lakh for e-trucks.
- Incentives for electric two-wheelers and three-wheelers end by March 2026.
- Target of deploying 5,600 e-trucks across the nation.
New Delhi, Aug 8 (NationPress) The Central government has announced a two-year extension for the PM E-Drive scheme aimed at promoting electric buses, ambulances, and trucks, now set to conclude in March 2028 instead of the previously scheduled March 2026.
A gazette notification from the Union Ministry of Heavy Industries confirms that the financial allocation for the scheme remains at Rs 10,900 crore, with no additional funds being allocated.
The notification also states that incentives for electric two-wheelers and three-wheelers will cease by March 2026.
The PM E-Drive scheme is designed to foster decarbonization, offering incentives of up to Rs 9.6 lakh for transitioning to electric trucks, with an estimated target of deploying around 5,600 e-trucks across the nation.
Recently, the government introduced a pioneering initiative that provides financial assistance for electric trucks (e-trucks) under the PM E-Drive program, with a maximum incentive of Rs 9.6 lakh per vehicle. This initiative represents the first instance of direct governmental support for electric trucks, aimed at expediting the country's shift towards clean, efficient, and sustainable freight transport.
According to Union Minister for Heavy Industries and Steel H.D. Kumaraswamy, while diesel trucks make up only 3 percent of the total vehicle population, they are responsible for a staggering 42 percent of transport-related greenhouse gas emissions, exacerbating air pollution.
The scheme will extend demand incentives to N2 and N3 category electric trucks as defined by the Central Motor Vehicle Rules (CMVR). The N2 category comprises trucks with a Gross Vehicle Weight (GVW) ranging from 3.5 tonnes to 12 tonnes, while the N3 category includes trucks with a GVW exceeding 12 tonnes and up to 55 tonnes. For articulated vehicles, incentives will apply solely to the puller tractor of the N3 category.
These incentives are designed to be applied as an upfront discount on the purchase price and will be reimbursed to Original Equipment Manufacturers (OEMs) through the PM E-Drive portal on a first-come, first-served basis.
Point of View
It is our duty to recognize the government's commitment to environmental sustainability through the extension of the PM E-Drive scheme. This initiative is a proactive step toward reducing the carbon footprint of the transport sector, aligning with national and global goals for a greener future.
NationPress
07/10/2025
Frequently Asked Questions
What is the PM E-Drive scheme?
The PM E-Drive scheme is an initiative by the Central government aimed at promoting electric buses, trucks, and ambulances through financial incentives to reduce greenhouse gas emissions.
How long has the PM E-Drive scheme been extended?
The PM E-Drive scheme has been extended by two years, now set to conclude in March 2028.
What is the maximum incentive available under the PM E-Drive scheme?
Under the PM E-Drive scheme, the maximum incentive for electric trucks can reach up to Rs 9.6 lakh per vehicle.
When will incentives for electric two-wheelers and three-wheelers end?
Incentives for electric two-wheelers and three-wheelers will conclude by March 2026.
What categories of trucks are eligible for incentives?
Incentives are available for N2 and N3 category electric trucks, defined by their Gross Vehicle Weight (GVW).
