Government Launches INR 9.6 Lakh Incentive Scheme for E-Trucks Under PM E-DRIVE

In a significant move to decarbonise the freight transport sector, the Government of India has launched the country’s first incentive scheme for electric trucks (e-trucks) under the PM E-DRIVE initiative.

The scheme, spearheaded by the Ministry of Heavy Industries (MHI), aims to boost the adoption of zero-emission heavy vehicles and accelerate India’s journey towards net-zero emissions by 2070.

Under the new policy, a maximum incentive of INR 9.6 lakh per e-truck will be provided upfront to Original Equipment Manufacturers (OEMs), to be later reimbursed through the PM E-DRIVE portal. This financial support is targeted at N2 and N3 category trucks as defined by Central Motor Vehicle Rules, vehicles with gross weight ranging from above 3.5 tonnes up to 55 tonnes.

The scheme is expected to catalyse the deployment of around 5,600 e-trucks across the country, with a special allocation of 1,100 trucks for Delhi, where the initiative is seen as a critical step to combat severe air pollution. An outlay of INR 100 crore has been earmarked for the capital.

Union Minister for Heavy Industries and Steel, while launching the scheme, said that although diesel trucks make up just 3 percent of India’s total vehicle fleet, they account for a staggering 42 percent of transport-related greenhouse gas emissions. “This pioneering initiative marks India’s first dedicated support for electric trucks and is aligned with the broader vision of a Viksit Bharat by 2047,” he said.

To ensure long-term reliability, the scheme mandates comprehensive warranty norms. Batteries must be covered for 5 years or 5 lakh kilometers, while vehicles and motors must have a warranty of at least 5 years or 2.5 lakh kilometers.

Key industries likely to benefit from this shift include logistics, cement, ports, and steel. OEMs such as Tata Motors, Volvo Eicher, and Ashok Leyland are already ramping up their e-truck production, strengthening India’s manufacturing footprint under the Atmanirbhar Bharat initiative.

Adding to the momentum, CPSE major Steel Authority of India Ltd. (SAIL) has committed to procure 150 e-trucks over the next two years and ensure that at least 15 percent of all vehicles hired across its operations are electric.

A key eligibility condition for receiving the incentive is the scrapping of older, polluting trucks, which is expected to accelerate the modernisation of India’s aging freight fleet and contribute to cleaner urban air.

This game-changing policy comes at a crucial time when India is pushing for green mobility solutions across segments. By bringing e-trucks into the fold of policy support, the government is aiming not only to reduce logistics costs but also to drive significant reductions in carbon emissions, paving the way for a cleaner, more sustainable transport sector.