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Electric truck push: Government offers up to Rs 9.6 lakh incentive per vehicle under PM E-DRIVE; SAIL to procure 150 e-trucks

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The government on Friday launched its first customer-facing incentive scheme for electric trucks under the PM E-DRIVE initiative , offering up to Rs 9.6 lakh per vehicle. The scheme, announced by Union minister H D Kumaraswamy , has earmarked Rs 500 crore for e-truck incentives out of a total Rs 10,900 crore programme outlay.

Targeting industries such as ports, logistics, steel and cement, the scheme will support the adoption of up to 5,600 electric trucks. “Diesel trucks, though constituting only 3 per cent of the total vehicle population, contribute to 42 per cent of transport-related greenhouse gas emissions ,” Kumaraswamy said, calling the scheme a pioneering step towards sustainable freight mobility and the Viksit Bharat 2047 vision.

The scheme offers incentives depending on the gross vehicle weight of trucks, with the highest support pegged at Rs 9.6 lakh, PTI reported. These incentives will be given as an upfront discount to buyers and reimbursed to OEMs via the PM E-DRIVE portal on a first-come, first-served basis. Importantly, scrapping of old polluting trucks is mandatory to avail benefits.

The Ministry of Heavy Industries stated that incentives would cover electric trucks under the N2 (3.5–12 tonnes) and N3 (12–55 tonnes) categories, as per the Central Motor Vehicle Rules. Trucks supported under the scheme must carry a five-year/5 lakh km battery warranty and five-year/2.5 lakh km warranty for motor and vehicle.

In a post on X, Kumaraswamy said the effort will also advance Make in India goals, reduce logistics costs, promote localisation, and create green jobs across the EV and battery ecosystem.

SAIL has committed to procuring 150 e-trucks over two years and aims to ensure that at least 15 per cent of vehicles hired across its units are electric.

Around Rs 100 crore has been allocated to support about 1,100 e-trucks registered in Delhi, targeting the national capital’s air quality concerns. Several OEMs have already begun electric truck production in India.

Explaining the scheme’s novelty, Heavy Industries Secretary Kamran Rizvi said, “This is the first time the government is directly incentivising customers to buy electric trucks. Earlier schemes like FAME or PLI were manufacturer-facing.”

The scheme mandates indigenisation through a phased manufacturing programme with limited import reliance. “Imported components are allowed to a minimal extent; most sourcing must be local,” he said.

Rizvi also shared updates on broader progress under PM E-DRIVE. Of 24.5 lakh two-wheelers targeted over two years, 12 lakh have already been supported. In the three-wheeler segment, 1.6 lakh vehicles have been supported against a target of 2 lakh.

In public transport, the ministry has sanctioned 10,400 e-buses, including 4,500 for Bengaluru, 2,800 for Delhi, 2,000 for Hyderabad, 1,000 for Ahmedabad and 600 for Surat. A nationwide tender floated by CESL for 10,900 e-buses is expected to draw strong industry response.

On electric ambulances, Rizvi said one model by Force Motors was homologated last month, with others in development. The ministries of Health and Road Transport are working on safety and patient care guidelines, expected before year-end.
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