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The Government of India, under the PM E-DRIVE initiative, has launched the country’s first dedicated financial incentive scheme for electric trucks (e-trucks). Spearheaded by the Ministry of Heavy Industries (MHI) and launched by Union Minister H.D. Kumaraswamy, the initiative is a key component of India's push toward green freight mobility, net-zero emissions by 2070, and cleaner urban air quality.

Key Features of the Scheme

• Scope & Objective: Aimed at reducing emissions from the freight sector, lowering logistics costs, and encouraging indigenous e-truck manufacturing under Atmanirbhar Bharat.
• Target Vehicle Categories:
  • N2 Category: Trucks with Gross Vehicle Weight (GVW) between 3.5 to 12 tonnes
  • N3 Category: Trucks with GVW above 12 tonnes and up to 55 tonnes (In case of articulated vehicles, only the N3-category puller tractor is eligible.)
• Eligibility Conditions:
  • Mandatory scrapping of old diesel trucks for availing incentives
  • Battery warranty: 5 years or 5 lakh km
  • Vehicle and motor warranty: 5 years or 2.5 lakh km
• Incentives Structure:
  • Maximum incentive: ?9.6 lakh per e-truck
  • Incentive amount based on GVW
  • Disbursal: Upfront reduction in purchase price; reimbursed to OEMs via PM E-DRIVE portal (first-come, first-served)

Implementation Timeline and Financial Outlay

• Duration: October 1, 2024 – March 31, 2026
• Budget:
  • ?500 crore earmarked for e-trucks within an overall outlay of ?10,900 crore under PM E-DRIVE
  • Dedicated ?100 crore allocation for 1,100 e-trucks registered in Delhi to combat air pollution

Wider PM E-DRIVE Ecosystem (formerly EMPS-2024)

• EV Categories Covered:
  • Electric 2-Wheelers: Incentive of ?5,000/kWh (capped at ?10,000 in Year 1, ?5,000 in Year 2)
  • Electric 3-Wheelers: ?25,000 in Year 1, ?12,500 in Year 2
  • L5 Cargo EVs: ?50,000 in Year 1, ?25,000 in Year 2
  • E-buses and e-ambulances: Covered under future extensions
• e-Vouchers: Introduced for digital verification and incentive tracking. One vehicle per Aadhaar; required for OEM reimbursement.
• Charging Infrastructure: The scheme promotes setting up EV Public Charging Stations (EVPCS) in high EV penetration cities and along major highways.

Strategic Importance and Impact

• Environmental: Diesel trucks constitute only 3% of the vehicle fleet but contribute to 42% of transport-related GHG emissions.
• Deployment Goal: Support for 5,600 e-trucks across India
• Sectoral Focus: Logistics, cement, steel, and port sectors
• Industry Participation: OEMs like Tata Motors, Ashok Leyland, Volvo Eicher are actively engaged
• CPSE Involvement: SAIL to procure 150 e-trucks and electrify 15% of hired vehicles.