India has introduced its first customer-facing incentive scheme for electric trucks under the PM E-DRIVE initiative. The scheme offers subsidies of up to Rs 9.6 lakh per vehicle. It aims to support the purchase of 5,600 electric trucks with an allocated budget of Rs 500 crore. This move targets reducing pollution and promoting sustainable freight transport by replacing diesel trucks, which contribute disproportionately to greenhouse gas emissions.
Background and Objectives
Diesel trucks form only 3 per cent of India’s vehicle population but cause 42 per cent of transport-related emissions. The scheme aligns with India’s goal of net-zero emissions by 2070 and the vision of Viksit Bharat by 2047. It supports industries like ports, logistics, cement, and steel. The initiative also aims to boost Make in India, reduce logistics costs, and create green jobs.
Incentive Structure and Eligibility
The incentive depends on the gross vehicle weight (GVW) of trucks. It covers N2 category trucks (3.5 to 12 tonnes GVW) and N3 category trucks (12 to 55 tonnes GVW). The maximum subsidy is Rs 9.6 lakh per truck. Incentives are given as upfront price reductions reimbursed to manufacturers via the PM E-DRIVE portal on a first-come, first-served basis. Scrapping old polluting trucks is mandatory to avail benefits.
Warranty and Manufacturing Support
Manufacturers must provide a comprehensive warranty – five years or 5 lakh km for batteries and five years or 2.5 lakh km for the vehicle and motor. The scheme promotes indigenisation through a phased manufacturing programme, limiting imported components and encouraging local sourcing. Several original equipment manufacturers (OEMs) have begun producing electric trucks in India.
Impact on Key Sectors and Regions
The scheme reserves incentives for about 1,100 electric trucks registered in Delhi to improve air quality. The Steel Authority of India Limited (SAIL) plans to procure 150 electric trucks and aims for 15 per cent of its fleet to be electric. Other sectors like logistics and ports are expected to benefit .
Integration with Broader Electric Mobility Efforts
PM E-DRIVE also supports electric two-wheelers, three-wheelers, and buses. Targets for three-wheelers have nearly been met with 1.6 lakh supported. For two-wheelers, 12 lakh have been supported against a target of 24.5 lakh. The scheme has sanctioned over 10,000 electric buses across major cities. Efforts are underway to introduce electric ambulances, with safety and patient care guidelines being developed.
Significance and Future Prospects
This scheme marks a shift from supply-side incentives to customer-facing subsidies for electric trucks. It is expected to accelerate the adoption of electric freight vehicles in India. The initiative complements other government programmes and supports India’s climate and industrial goals.
Questions for UPSC:
- Point out the environmental and economic impacts of transitioning from diesel to electric vehicles in India’s freight sector.
- Critically analyse the role of government incentives in promoting Make in India and green jobs in the electric vehicle industry.
- Estimate the challenges and opportunities in achieving net-zero emissions in the transport sector by 2070 with reference to electric mobility.
- What are the key features of the Central Motor Vehicle Rules (CMVR) related to vehicle classification? How do these rules affect the implementation of electric vehicle policies?
