Govt Launches First Incentive Scheme for E-Trucks
ECONOMY & POLICY

Govt Launches First Incentive Scheme for E-Trucks

Under the leadership of Prime Minister Shri Narendra Modi and Union Minister for Heavy Industries & Steel Shri H.D. Kumaraswamy, the Ministry of Heavy Industries (MHI) has launched India’s first financial incentive scheme for electric trucks under the PM E-DRIVE initiative. The move aims to promote clean, efficient, and sustainable freight mobility by offering direct support to e-truck buyers.

Union Minister Kumaraswamy highlighted that although diesel trucks make up only 3 per cent of India’s vehicle population, they account for 42 per cent of transport-related greenhouse gas emissions. This pioneering scheme addresses both environmental and economic concerns, supporting India’s transition towards a net-zero emissions target by 2070 and the broader vision of Viksit Bharat by 2047.

The scheme will provide demand incentives for electric trucks in the N2 and N3 categories, as defined under the Central Motor Vehicle Rules (CMVR):
  • N2: Trucks with Gross Vehicle Weight (GVW) above 3.5 tonnes and up to 12 tonnes
  • N3: Trucks with GVW above 12 tonnes and up to 55 tonnes (in articulated vehicles, only the puller tractor qualifies)
To ensure quality and performance:
  • The battery must have a warranty of 5 years or 500,000 km (whichever is earlier)
  • The vehicle and motor must have a warranty of 5 years or 250,000 km
The maximum incentive is set at Rs 960,000 per vehicle, depending on GVW, and will be offered as an upfront reduction in the purchase price. Reimbursement to OEMs will be managed via the PM E-DRIVE portal on a first-come, first-served basis.

The scheme is expected to support the deployment of approximately 5,600 e-trucks nationwide, including a dedicated provision for 1,100 e-trucks in Delhi with an estimated outlay of Rs 1 billion, in response to the capital’s severe air pollution.

Key industries likely to benefit include cement, ports, steel, and logistics, with leading manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland already active in the electric truck segment, strengthening the Atmanirbhar Bharat initiative.

The Steel Authority of India Limited (SAIL) has pledged to procure 150 e-trucks over two years and aims to ensure that 15 per cent of hired vehicles across its units are electric, reinforcing CPSE leadership in clean mobility adoption.

To qualify for incentives, scrapping of old, polluting trucks is mandatory—delivering dual benefits of fleet modernisation and emissions reduction.
This forward-looking scheme supports India’s goal of creating a self-reliant electric mobility ecosystem, lowering logistics costs, and improving air quality across urban and industrial regions. 

Under the leadership of Prime Minister Shri Narendra Modi and Union Minister for Heavy Industries & Steel Shri H.D. Kumaraswamy, the Ministry of Heavy Industries (MHI) has launched India’s first financial incentive scheme for electric trucks under the PM E-DRIVE initiative. The move aims to promote clean, efficient, and sustainable freight mobility by offering direct support to e-truck buyers.Union Minister Kumaraswamy highlighted that although diesel trucks make up only 3 per cent of India’s vehicle population, they account for 42 per cent of transport-related greenhouse gas emissions. This pioneering scheme addresses both environmental and economic concerns, supporting India’s transition towards a net-zero emissions target by 2070 and the broader vision of Viksit Bharat by 2047.The scheme will provide demand incentives for electric trucks in the N2 and N3 categories, as defined under the Central Motor Vehicle Rules (CMVR):N2: Trucks with Gross Vehicle Weight (GVW) above 3.5 tonnes and up to 12 tonnesN3: Trucks with GVW above 12 tonnes and up to 55 tonnes (in articulated vehicles, only the puller tractor qualifies)To ensure quality and performance:The battery must have a warranty of 5 years or 500,000 km (whichever is earlier)The vehicle and motor must have a warranty of 5 years or 250,000 kmThe maximum incentive is set at Rs 960,000 per vehicle, depending on GVW, and will be offered as an upfront reduction in the purchase price. Reimbursement to OEMs will be managed via the PM E-DRIVE portal on a first-come, first-served basis.The scheme is expected to support the deployment of approximately 5,600 e-trucks nationwide, including a dedicated provision for 1,100 e-trucks in Delhi with an estimated outlay of Rs 1 billion, in response to the capital’s severe air pollution.Key industries likely to benefit include cement, ports, steel, and logistics, with leading manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland already active in the electric truck segment, strengthening the Atmanirbhar Bharat initiative.The Steel Authority of India Limited (SAIL) has pledged to procure 150 e-trucks over two years and aims to ensure that 15 per cent of hired vehicles across its units are electric, reinforcing CPSE leadership in clean mobility adoption.To qualify for incentives, scrapping of old, polluting trucks is mandatory—delivering dual benefits of fleet modernisation and emissions reduction.This forward-looking scheme supports India’s goal of creating a self-reliant electric mobility ecosystem, lowering logistics costs, and improving air quality across urban and industrial regions. 

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?