India has introduced a pioneering scheme to promote electric trucks (e-trucks) under the PM E-DRIVE initiative. This marks the first direct government support for electric heavy vehicles. The scheme aims to accelerate clean freight mobility and reduce emissions, supporting India’s net-zero target by 2070 and the vision of Viksit Bharat by 2047.
Background and Significance
Diesel trucks make up only 3% of all vehicles but cause 42% of transport-related greenhouse gas emissions. They also contribute heavily to air pollution. The new scheme addresses this imbalance by encouraging the shift to electric trucks, which are cleaner and more efficient.
Scope and Eligibility
The incentives apply to N2 and N3 category electric trucks as per Central Motor Vehicle Rules. N2 trucks weigh between 3.5 and 12 tonnes. N3 trucks weigh over 12 tonnes up to 55 tonnes. For articulated vehicles, only the N3 puller tractor qualifies.
Incentive Structure and Warranty
Financial incentives vary with the truck’s gross vehicle weight. The maximum subsidy is ₹9.6 lakh per vehicle. Incentives are provided upfront as a price reduction and reimbursed to manufacturers through the PM E-DRIVE portal. Manufacturers must provide warranties – five years or 5 lakh km for batteries and five years or 2.5 lakh km for vehicles and motors.
Implementation and Impact
The scheme targets deployment of around 5,600 electric trucks nationally. Delhi has a dedicated allocation of 1,100 trucks with ₹100 crore funding to combat its severe air pollution. Key beneficiaries include sectors like cement, ports, steel, and logistics.
Industry Participation and Commitments
Major truck makers such as Volvo Eicher, Tata Motors, and Ashok Leyland are actively manufacturing e-trucks in India. The Steel Authority of India Limited (SAIL) plans to buy 150 e-trucks in two years and aims for 15% of its fleet to be electric.
Environmental and Economic Benefits
The scheme mandates scrapping old diesel trucks, promoting fleet modernisation and emission reduction. It reduces logistics costs and supports a self-reliant electric mobility ecosystem. The initiative aligns with India’s broader goals of sustainability and low-carbon growth.
Questions for UPSC:
- Critically analyse the role of government incentives in accelerating electric vehicle adoption in India’s transport sector with suitable examples.
- Explain the environmental and economic impacts of transitioning from diesel to electric freight vehicles in India.
- What are the challenges in creating a self-reliant electric mobility ecosystem in India? How can policy interventions address these challenges?
- Underline the significance of scrappage policies in vehicular pollution control and fleet modernisation. Discuss with reference to India’s recent initiatives.
