Ministry of Heavy Industries (MHI) has launched India’s first-ever financial incentive scheme for electric trucks under the PM E-DRIVE initiative. This landmark scheme aims to decarbonize heavy freight transport by reducing dependence on diesel trucks and promoting clean, efficient, and indigenous electric truck manufacturing.
Key Features of e-Truck Incentive Scheme
Objective:
- To accelerate the deployment of e-trucks, promote indigenous EV manufacturing, reduce logistics costs, and cut GHG emissions.
Background Need:
- Diesel trucks make up only 3% of total vehicles, but emit 42% of transport-related greenhouse gases.
Eligibility & Categories (as per CMVR):
- N2 Category: GVW > 3.5 tonnes & ≤12 tonnes
- N3 Category: GVW > 12 tonnes & ≤55 tonnes (Only puller tractor for articulated vehicles)
Financial Incentive:
- Up to ₹9.6 lakh per e-truck as upfront purchase reduction.
- Reimbursement routed via PM E-DRIVE portal, on first-come, first-served basis.
Quality Assurance:
- Battery warranty: 5 years or 5 lakh km
- Motor & Vehicle warranty: 5 years or 2.5 lakh km
Deployment Target:
- Total e-trucks supported: ~5,600
- Special allocation for Delhi: 1,100 e-trucks
- Budget for Delhi allocation: ₹100 crore (In view of high pollution levels in the capital)
Mandatory Scrappage:
- Old diesel truck scrappage is compulsory to avail incentives, enabling:
- Fleet modernization
- Pollution control
Industries & Stakeholders Involved
| Stakeholder | Contribution |
| Volvo Eicher, Tata Motors, Ashok Leyland | Engaged in e-truck manufacturing |
| SAIL (Steel Authority of India Limited) | Pledged to procure 150 e-trucks over 2 years; 15% of hired fleet to be electric |
| Logistics, Cement, Steel, and Port sectors | Major beneficiaries of the scheme |
Significance
| Focus Area | Impact |
| Clean Transport | Aims to reduce emissions from heavy vehicles |
| Economic Growth | Boosts Make in India, lowers transport costs |
| Public Health | Improves urban air quality |
| Energy Security | Reduces fossil fuel dependence |
About PM E-DRIVE Initiative
Full Form: PM Electric Drive Revolution in Innovative Vehicle Enhancement
Launched By: Ministry of Heavy Industries (MHI)
Objective:
- Build a self-reliant EV ecosystem
- Promote EV adoption across segments
- Strengthen domestic manufacturing & charging infra
- Help India reach Net-Zero Emissions by 2070
Budget & Allocations (2024–26)
Total Outlay: ₹10,900 crore over 2 years
| Category | Allocation |
| e-2Ws, e-3Ws, ambulances, trucks | ₹3,679 crore |
| Electric ambulances | ₹500 crore |
| e-Buses (14,028 units across 9 cities) | ₹4,391 crore |
| Charging infrastructure (72,300 stations) | ₹2,000 crore |
Major Cities for e-Buses: Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bengaluru, Pune, Hyderabad
Implementation Highlights
- Digital e-Voucher System: Aadhaar-authenticated, signed by buyer and dealer.
- Scrappage Mandate: Compulsory for claiming incentives on e-trucks.
- Testing Support: Assistance for upgrading EV testing agencies.
- Extended Scope: Goes beyond FAME-II to include:
- e-Trucks
- e-Ambulances
- Public Charging Infrastructure
Key Facts
| Topic | Fact |
| CMVR Full Form | Central Motor Vehicle Rules |
| Ministry of Heavy Industries HQ | New Delhi |
| SAIL Headquarters | New Delhi |
| India’s Net-Zero Target | 2070 |
| Vision Document | Viksit Bharat @2047 |
| FAME Scheme Full Form | Faster Adoption and Manufacturing of Hybrid and Electric Vehicles |
| EV Battery Warranty Norm | 5 years or 5 lakh km (whichever earlier) under e-truck scheme |