Is India Launching Its First Electric Truck Scheme with a Maximum Incentive of Rs 9.6 Lakh per Vehicle?

New Delhi, July 11 (NationPress) In a significant move, the Central Government has unveiled an innovative scheme aimed at offering financial incentives for electric trucks (e-trucks) under the PM E-DRIVE initiative, with the highest incentive capped at Rs 9.6 lakh per vehicle.

This initiative marks a historic first, providing direct governmental support for electric trucks and aiming to expedite the nation's shift towards clean, efficient, and sustainable freight mobility. The scheme is projected to facilitate the deployment of around 5,600 e-trucks nationwide.

Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, highlighted the alarming environmental impact of diesel trucks, stating, “While they make up only 3% of the total vehicle count, they are responsible for 42% of greenhouse gas emissions related to transport, exacerbating air pollution.”

Under the visionary guidance of Prime Minister Narendra Modi, this pioneering scheme symbolizes India’s inaugural dedicated support for electric trucks.

“This initiative will lead our nation towards sustainable freight mobility, paving the way for a cleaner future and realizing Viksit Bharat by 2047, in line with our net-zero emissions target by 2070,” the minister stated.

The scheme will provide demand incentives for N2 and N3 category electric trucks, as defined by the Central Motor Vehicle Rules (CMVR).

The N2 category pertains to trucks with a Gross Vehicle Weight (GVW) exceeding 3.5 tonnes and up to 12 tonnes.

The N3 category includes trucks with GVW beyond 12 tonnes and up to 55 tonnes. For articulated vehicles, incentives will be applicable only to the puller tractor within the N3 category.

To ensure reliability and performance, comprehensive manufacturer-backed warranties are mandated under the scheme. The battery must be covered for five years or 5 lakh kilometres, whichever comes first, alongside a warranty of five years or 2.5 lakh kilometres for the vehicle and motor.

The incentive amount will vary based on the GVW of the e-truck, with the maximum incentive set at Rs 9.6 lakh per vehicle. These incentives will be available as an upfront price reduction and reimbursed to OEMs via the PM E-DRIVE portal on a first-come, first-served basis.

A dedicated allocation for 1,100 e-trucks registered in Delhi has been established, with an estimated budget of Rs 100 crore, aiming to tackle the capital’s serious air quality issues.

The initiative has been positively received by both manufacturers and e-truck users, who recognize its potential to lower logistics expenses and decrease carbon emissions.

The Steel Authority of India Limited (SAIL) has pledged to acquire 150 e-trucks over the next two years for deployment across various locations. Furthermore, SAIL aims to ensure that at least 15% of all vehicles hired across its units are electric.

To be eligible for the incentives, the scrapping of old, polluting trucks is mandatory, ensuring a dual benefit of modernizing vehicle fleets and minimizing emissions, according to the ministry.