India Rolls Out First-Ever e-Truck Incentive Scheme Under PM Modi’s Green Mobility Vision

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India Rolls Out First-Ever e-Truck Incentive Scheme Under PM Modi’s Green Mobility Vision

ANALYSIS

1. Context

• The Ministry of Heavy Industries (MHI), under the guidance of Union Minister H.D. Kumaraswamy, launched India’s first-ever incentive scheme for electric trucks under the PM E-DRIVE initiative.
• This marks the first direct government support specifically targeted at the electrification of freight mobility.

2. Rationale Behind the Scheme

• Diesel trucks constitute only 3% of India’s vehicle population but contribute 42% of transport-related GHG emissions, significantly impacting air quality.
• The initiative aligns with national goals including Viksit Bharat 2047 and the net-zero target by 2070.

3. Coverage Under the Scheme

• Incentives apply to N2 and N3 category electric trucksunder CMVR.
  • N2 Category: GVW above 3.5 tonnes and up to 12 tonnes.
  • N3 Category: GVW above 12 tonnes and up to 55 tonnes.
  • For articulated vehicles, incentives apply only to the puller tractor of the N3 category.

4. Warranty Requirements

• Battery Warranty: 5 years or 5 lakh km, whichever is earlier.
• Vehicle & Motor Warranty: 5 years or 2.5 lakh km, whichever is earlier.
• These conditions ensure performance reliability and robust manufacturer accountability.

5. Incentive Structure

• Incentives vary according to GVW.
• Maximum incentive: ₹9.6 lakh per vehicle.
• Incentives serve as an upfront purchase price reduction and are reimbursed to OEMs through the PM E-DRIVE portal, on a first-come, first-served basis.

6. Expected Deployment

• The scheme aims to support approximately 5,600 e-trucks nationwide.
• A targeted provision includes 1,100 e-trucks for Delhi with an outlay of ₹100 crore to address severe pollution levels in the capital.

7. Beneficiary Sectors

• Key industrial and logistics sectors likely to benefit include:
  • Cement
  • Ports
  • Steel
  • Broader logistics and supply chain operations
• Major OEMs such as Volvo Eicher, Tata Motors, and Ashok Leyland are already manufacturing electric trucks in India, strengthening domestic capacity.

8. Institutional Adoption

• SAIL has committed to procuring 150 e-trucks over the next two years.
• It has additionally set a target to make 15% of all hired vehicles electric across its units.

9. Mandatory Scrappage Clause

• Eligibility for incentive requires scrapping of old, polluting trucks, thereby combining fleet modernisation with emission reduction.

10. Broader National Impact

• Supports the creation of a self-reliant electric mobility ecosystem.
• Expected to reduce logistics costs, enhance air quality, and expedite India’s transition towards a low-carbon freight system.

STATIC PORTION (EXAM-RELEVANT)

CMVR Classification (Relevant Categories)

• N2 Vehicles:
  • Motor vehicles for goods transport with GVW > 3.5 tonnes and ≤ 12 tonnes.
• N3 Vehicles:
  • Motor vehicles for goods transport with GVW > 12 tonnes (up to 55 tonnes as per scheme applicability).
• Articulated Vehicles:
  • Incentives apply only to the puller tractor of N3 category trucks.

About PM E-DRIVE

• A government initiative aimed at speeding up electric vehicle adoption across sectors, especially commercial and heavy-duty vehicles.
• Functions as an integrated platform for approvals, reimbursement, and monitoring of electric mobility schemes.

Updated – 11 Jul 2025 ; 3:27 PM | PIB

News Source:PIB