The government on Friday launched guidelines for electric trucks (e-trucks) under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. Under this scheme, the Centre will provide an incentive of ₹9.6 lakh per e-truck to buyers across India.
The scheme has a national cap of 5,600 e-trucks for incentives, with ₹100 crore specifically allocated for 1,100 e-trucks in Delhi.
However, there’s a key condition to avail these incentives: buyers must provide a scrappage certificate for an old internal combustion engine (ICE) truck. This certificate, which can also be purchased from a dealer, must be a Certificate of Deposit (CD) issued by a Ministry of Road Transport and Highways (MoRTH) authorised Registered Vehicle Scrapping Facility (RVSF). The old truck must have an equal or higher Gross Vehicle Weight (GVW) than the new e-truck.
If a buyer doesn’t have a CD, they can purchase one through the DigiELV portal. At the time of purchase, the e-truck buyer will present the CD to the dealer. The dealer then verifies the CD’s authenticity, validity, ownership and GVW via the PM E-DRIVE portal. The Ministry of Heavy Industries (MHI) clarified, “The dealer should ensure that the CD is in the name of the buyer. If CD validation is successful, then the dealer will generate buyer ID on the PM E-DRIVE portal and pass on the incentive on the sale of the e-truck.”
HD Kumaraswamy, Minister of Heavy Industries and Steel, stated that this initiative will drive India towards sustainable freight mobility, a cleaner future, and the realisation of Viksit Bharat by 2047, aligning with India’s net-zero emissions goal by 2070. He added that the scheme will significantly impact key sectors such as Steel, Cement, Logistics, and Ports.
Kumaraswamy highlighted the environmental urgency, noting, “Diesel trucks, though constituting only three percent of the total vehicle population, contribute to 42 percent of transport-related greenhouse gas emissions and significantly worsen air pollution.” He emphasized that this “pioneering scheme, guided by the visionary leadership of Prime Minister Narendra Modi, represents India’s first dedicated support for electric trucks.” As an early adopter, Steel Authority of India Limited (SAIL) has already committed to procuring 150 e-trucks, aiming for 15 percent EV usage across its units.
The scheme extends demand incentives to N2 and N3 category e-trucks, as defined under the Central Motor Vehicle Rules (CMVR). The N2 category includes trucks with a GVW above 3.5 tonnes and up to 12 tonnes, while the N3 category covers trucks with GVW exceeding 12 tonnes and up to 55 tonnes. For articulated vehicles, incentives apply only to the puller tractor of the N3 category.
Leading original equipment manufacturers (OEMs) like Volvo Eicher, Tata Motors, and Ashok Leyland are already manufacturing e-trucks in India.
The PM E-DRIVE scheme, with a total outlay of ₹10,900 crore, was launched in September 2024 and will be implemented from October 1, 2024, until March 31, 2026. Of this, ₹500 crore has been specifically allotted for e-trucks.
