In July 2025, Union Minister Haradanahalli Devegowda (H.D.) Kumaraswamy, Ministry of Heavy Industries (MHI), Ministry of Steel (MoS), launched India’s first-ever demand incentive scheme for electric trucks (e-trucks) under the PM E-DRIVE (Electric -Deployment and Renewable Integration for Vehicles & Environment) initiative.
- The initiative aims to reduce emissions from freight transport and fast-track the adoption of e-trucks in high-impact sectors such as ports, logistics, cement, and steel.
- The initiative supports India’s goal of achieving net-zero emissions by 2070 and aligns with the government’s vision of building a Viksit Bharat (Developed India) by 2047.
Key Details of Incentive Scheme for Electric Trucks:
i.Financial Incentives: Out of the Rs.10,900 crore PM E-DRIVE budget, the Government of India(GoI)has earmarked Rs.500 crore specifically to support electric trucks. This funding will provide incentives for the deployment of up to 5,600 electric trucks.
- A maximum incentive of Rs 9.6 lakh per e-truck will be offered, depending on the truck’s Gross Vehicle Weight (GVW).
- This incentive will be given as an upfront discount on the purchase price and later reimbursed to the Original Equipment Manufacturers (OEMs) through the PM E-DRIVE portal on a first-come, first-served basis.
ii.Vehicle Categories: The scheme provides demand incentives for N2 and N3 category e-trucks, classified as per the Central Motor Vehicle Rules (CMVR):
- N1 category: Trucks with Gross Vehicle Weight (GVW) up to 3.5 tonnes.
- N2 category: Trucks with GVW above 3.5 tonnes and up to 12 tonnes.
- N3 category: Trucks with GVW exceeding 12 tonnes and up to 55 tonnes. In case of articulated vehicles, incentives are applicable only to the puller tractor of the N3 category.
iii.Deployment Target: Out of the total 5,600 electric trucks to be supported under the scheme, 1,100 have been specially allocated for Delhi, backed by a Rs.100 crore provision to combat the city’s severe air pollution and promote cleaner freight transport.
iv.Warranty Mandate: Manufacturer-backed warranties are mandatory to ensure reliability:
- Battery: 5 years or 5 lakh kilometres (km) (whichever is earlier)
- Vehicle & Motor: 5 years or 2.5 lakh km (whichever is earlier)
v.Eligibility: Scrapping of old diesel trucks is mandatory to avail the incentive.
vi.Benefit: Key industries expected to benefit include the cement industry, steel, logistics, and port sectors.
- Public Sector Undertakings (PSUs) are supporting the initiative, with Steel Authority of India Limited (SAIL), Delhi, committing to procure 150 e-trucks over the next two years and ensure that 15% of all hired vehicles across its units are electric.
Note: Diesel trucks make up just 3% of the total vehicle population but are responsible for 42% of transport-related greenhouse gas emissions, greatly contributing to air pollution.
About PM E-DRIVE Scheme:
i.The PM E-DRIVE Scheme, notified by the MoHI on 29th September 2024, aims to boost green mobility and strengthen the Electric Vehicle (EV) manufacturing ecosystem in India.
ii.With an outlay of Rs.10,900 crore for two years (from 1st April 2024 to 31st March 2026), it includes the earlier Electric Mobility Promotion Scheme (EMPS) 2024.
About Ministry of Heavy Industries (MoHI):
Union Minister– Haradanahalli Devegowda (HD) Kumaraswamy (Constituency- Mandya, Karnataka)
Minister of State (MoS)- Bhupathi Raju Srinivasa Varma (Constituency- Narasapuram, Andhra Pradesh, AP)
