Government Incentives for Electric Trucks: Up to Rs 9.6 Lakh Available

The Indian government has unveiled its inaugural customer-focused incentive program for electric trucks under the PM E-DRIVE initiative, offering substantial financial support of up to Rs 9.6 lakh per vehicle. Announced by Union Minister H D Kumaraswamy, this scheme allocates Rs 500 crore specifically for electric truck incentives, part of a broader Rs 10,900 crore initiative aimed at promoting sustainable freight mobility. The program targets key industries such as logistics, ports, steel, and cement, with the goal of facilitating the adoption of approximately 5,600 electric trucks.

Incentives and Eligibility Criteria

The incentive structure is designed to vary based on the gross vehicle weight of the trucks, with the maximum support reaching Rs 9.6 lakh. This financial assistance will be provided as an upfront discount to buyers and will be reimbursed to original equipment manufacturers (OEMs) through the PM E-DRIVE portal on a first-come, first-served basis. A crucial requirement for participants is the scrapping of older, polluting trucks to qualify for the benefits. The Ministry of Heavy Industries has specified that the incentives will apply to electric trucks classified under the N2 (3.5–12 tonnes) and N3 (12–55 tonnes) categories, in accordance with the Central Motor Vehicle Rules. Additionally, trucks eligible for the scheme must come with a five-year or 5 lakh km battery warranty, as well as a five-year or 2.5 lakh km warranty for the motor and vehicle.

Environmental Impact and Industry Commitment

Kumaraswamy emphasized the environmental significance of the initiative, noting that while diesel trucks account for only 3% of the total vehicle population, they contribute to a staggering 42% of transport-related greenhouse gas emissions. He described the scheme as a groundbreaking step towards achieving sustainable freight mobility and aligning with the Viksit Bharat 2047 vision. In a notable commitment to this initiative, Steel Authority of India Limited (SAIL) has pledged to procure 150 electric trucks over the next two years, aiming for at least 15% of its vehicle fleet to be electric. Furthermore, around Rs 100 crore has been allocated to support approximately 1,100 electric trucks registered in Delhi, addressing the city’s pressing air quality issues.

Advancing Local Manufacturing and Job Creation

The scheme is also poised to bolster the Make in India initiative by promoting local manufacturing and reducing reliance on imports. Heavy Industries Secretary Kamran Rizvi highlighted that this is the first time the government is directly incentivizing customers to purchase electric trucks, contrasting it with previous manufacturer-focused schemes like FAME or PLI. The program mandates a phased manufacturing approach, allowing only minimal importation of components, thereby encouraging local sourcing. Rizvi also provided updates on the broader PM E-DRIVE initiative, noting that of the target of 24.5 lakh two-wheelers over two years, 12 lakh have already been supported. In the three-wheeler segment, 1.6 lakh vehicles have been supported against a target of 2 lakh.

Future Developments in Electric Mobility

In the realm of public transport, the Ministry has sanctioned 10,400 electric buses, with significant allocations for major cities like Bengaluru, Delhi, Hyderabad, Ahmedabad, and Surat. A nationwide tender for an additional 10,900 electric buses is anticipated to attract strong interest from the industry. Additionally, developments in electric ambulances are underway, with one model by Force Motors recently homologated and others in the pipeline. The Ministries of Health and Road Transport are collaborating to establish safety and patient care guidelines, expected to be released by the end of the year. This comprehensive approach underscores the government’s commitment to advancing electric mobility across various sectors.

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