Centre Launches Rs 10.9 Billion Scheme for E-Trucks
ECONOMY & POLICY

Centre Launches Rs 10.9 Billion Scheme for E-Trucks

Union Minister for Heavy Industries and Steel HD Kumaraswamy has officially launched the electric truck incentive scheme under the PM E-DRIVE programme, marking the first time the central government is directly supporting electric freight vehicles.
Approved by the Union Cabinet led by Prime Minister Narendra Modi, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (E-DRIVE) scheme was sanctioned on 11 September 2024, with a total outlay of Rs 10.9 billion over two years.

The scheme is part of India's strategic push towards clean and sustainable freight mobility, in line with its net-zero emissions target by 2070. It will offer demand incentives for N2 and N3 category electric trucks, defined under the Central Motor Vehicle Rules (CMVR). In the case of articulated vehicles, incentives apply only to the puller tractor of the N3 category.

Manufacturers must offer a five-year or 500,000 km warranty on batteries and a five-year or 250,000 km warranty on vehicles and motors, whichever comes first. The maximum incentive available is Rs 960,000 per vehicle, depending on gross vehicle weight, provided as an upfront discount and later reimbursed to OEMs through the PM E-DRIVE portal on a first-come, first-served basis.
The government estimates that the scheme will facilitate the deployment of around 5,600 e-trucks nationwide. Of this, 1,100 e-trucks are earmarked for Delhi, with an allocation of Rs 1 billion, aimed at improving the capital's air quality.

Key industries likely to benefit include cement, ports, steel, and logistics. Major manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland are already producing electric trucks domestically. The Steel Authority of India Limited (SAIL) has committed to procuring 150 e-trucks over two years and aims for at least 15 per cent of its total fleet across all units to be electric.

To avail of the incentives, scrapping of old, polluting trucks is mandatory, reinforcing the dual focus on modernisation and emissions reduction.

According to the Ministry, this initiative is a forward-looking step aligned with the government’s vision of building a self-reliant electric mobility ecosystem. It is expected to lower logistics costs, reduce carbon emissions, and enhance air quality in both urban and regional areas.

Union Minister for Heavy Industries and Steel HD Kumaraswamy has officially launched the electric truck incentive scheme under the PM E-DRIVE programme, marking the first time the central government is directly supporting electric freight vehicles.Approved by the Union Cabinet led by Prime Minister Narendra Modi, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (E-DRIVE) scheme was sanctioned on 11 September 2024, with a total outlay of Rs 10.9 billion over two years.The scheme is part of India's strategic push towards clean and sustainable freight mobility, in line with its net-zero emissions target by 2070. It will offer demand incentives for N2 and N3 category electric trucks, defined under the Central Motor Vehicle Rules (CMVR). In the case of articulated vehicles, incentives apply only to the puller tractor of the N3 category.Manufacturers must offer a five-year or 500,000 km warranty on batteries and a five-year or 250,000 km warranty on vehicles and motors, whichever comes first. The maximum incentive available is Rs 960,000 per vehicle, depending on gross vehicle weight, provided as an upfront discount and later reimbursed to OEMs through the PM E-DRIVE portal on a first-come, first-served basis.The government estimates that the scheme will facilitate the deployment of around 5,600 e-trucks nationwide. Of this, 1,100 e-trucks are earmarked for Delhi, with an allocation of Rs 1 billion, aimed at improving the capital's air quality.Key industries likely to benefit include cement, ports, steel, and logistics. Major manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland are already producing electric trucks domestically. The Steel Authority of India Limited (SAIL) has committed to procuring 150 e-trucks over two years and aims for at least 15 per cent of its total fleet across all units to be electric.To avail of the incentives, scrapping of old, polluting trucks is mandatory, reinforcing the dual focus on modernisation and emissions reduction.According to the Ministry, this initiative is a forward-looking step aligned with the government’s vision of building a self-reliant electric mobility ecosystem. It is expected to lower logistics costs, reduce carbon emissions, and enhance air quality in both urban and regional areas. 

Next Story
Real Estate

What Does Home Insurance Really Cover?

Home insurance is one of the most important protections a homeowner can have. It offers financial cover for unexpected damages, losses, or liabilities related to your property. However, many homeowners are not fully aware of what is actually included in their home insurance policy.This guide breaks down what home insurance really covers, so you can be better prepared and make informed decisions.What is home insurance?Home insurance is a financial product that protects your house and belongings against damage, theft, or accidents. It generally includes coverage for the building itself, as ..

Next Story
Infrastructure Urban

Hettich Strengthens Industry Ties at Madhya Pradesh Investment Meet

Hettich India, a global leader in furniture fittings, reinforced its commitment to Madhya Pradesh’s industrial growth as a Guest of Honour at an Interactive Session on Investment Opportunities in Power, Renewable Energy Equipment, and White Goods Manufacturing, hosted by the Government of Madhya Pradesh in partnership with the Confederation of Indian Industry (CII) at Hotel Trident, Nariman Point, Mumbai.The session, chaired by Dr Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh, brought together leading domestic and international investors, industry representatives, and business lead..

Next Story
Equipment

Raimondi Names New Saudi Branch Head

Raimondi Middle East has announced the appointment of Ahmad Shakkour as Branch Manager for the Kingdom of Saudi Arabia, reinforcing the company’s commitment to expanding its presence in one of its key regional markets.With Saudi Arabia driving a wave of large-scale infrastructure and urban development projects, Raimondi aims to strengthen its on-ground operations and customer engagement. The company currently has over 100 cranes deployed across the country and continues to expand its technical and service teams to support growing demand.“Saudi Arabia represents a cornerstone of our regiona..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?