+
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
Infrastructure Urban

CJ Logistics’ Global CEO visits India to align growth strategy

Jonathan Song, newly appointed CEO of the Global Business Division at South Korea-based CJ Logistics, concluded a strategic three-day visit to India from July 29 to 31, reinforcing the company’s long-term commitment to the market through its subsidiary, CJ Darcl Logistics Ltd. Mr Song held high-level discussions with the CJ Darcl leadership and key customers to understand India’s evolving logistics needs, identify synergy areas, and enhance business alignment. His visit highlighted the strategic significance of India in CJ Logistics’ global network, especially amid the country’s g..

Next Story
Real Estate

Max Towers secures five star rating in safety audit by British Council

Max Estates, a leading NCR-based real estate developer, has achieved a five star rating in its first attempt at the British Safety Council’s ‘Five Star Occupational Health and Safety’ Audit for Max Towers, its premium commercial office project in Noida. The grading reflects the organisation’s commitment to the continual improvement of its occupational health and safety systems. The comprehensive audit covered documentation, interviews with senior management and employees, stakeholder feedback, and rigorous sampling of on-ground activities. It assessed performance against best prac..

Next Story
Real Estate

India’s Tier 2 & 3 Cities: The Next Growth Frontier for Real Estate

Introduction India’s metropolitan cities have long dominated the real estate landscape, shaping both market trends and public discourse, but the narrative is shifting towards India’s tier 2 and 3 cities. Beyond the metro cities, Tier 2 and Tier 3 cities such as Indore, Ahmedabad, Chandigarh, Jaipur, Coimbatore, Lucknow, Bhubaneswar, Kochi, Surat, Guwahati, and many others are emerging as vibrant real estate hubs. This growth is driven by impetus from rapid urbanisation, logistics corridors like the Delhi Mumbai Industrial Corridor, IT/ITeS investment zones, emergence of global capabil..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?