Latest news with #PME-DRIVE
Time of India
21 hours ago
- Automotive
- Time of India
Govt launches ₹9.6 lakh incentive scheme for electric trucks under PM E-DRIVE; targets 5,600 vehicles
New Delhi: The Ministry of Heavy Industries on Friday launched a scheme to provide demand incentives of up to ₹9.6 lakh per vehicle for the deployment of electric trucks (e-trucks) under the PM E-DRIVE initiative , targeting 5,600 units across the country. The scheme covers electric trucks falling under the N2 and N3 categories as per the Central Motor Vehicle Rules (CMVR). N2 includes trucks with gross vehicle weight (GVW) above 3.5 tonnes and up to 12 tonnes, while N3 covers trucks with GVW exceeding 12 tonnes and up to 55 tonnes. For articulated vehicles, incentives are applicable only to the puller tractor in the N3 category. To ensure performance standards, the battery must carry a warranty of five years or 5 lakh kilometres, whichever is earlier. Similarly, the vehicle and motor must be covered by a warranty of five years or 2.5 lakh kilometres, whichever is earlier. The incentives will be offered as an upfront reduction in the vehicle's purchase price and reimbursed to original equipment manufacturers (OEMs) via the PM E-DRIVE portal on a first-come, first-served basis. A dedicated provision of ₹100 crore has been made for 1,100 e-trucks registered in Delhi to address air quality challenges in the capital. Union Minister for Heavy Industries and Steel H.D. Kumaraswamy said, 'Diesel trucks, though constituting only 3% of the total vehicle population, contribute to 42% of transport-related greenhouse gas emissions and significantly worsen air pollution. This pioneering scheme, guided by the visionary leadership of Prime Minister Shri Narendra Modi, represents India's first dedicated support for electric trucks. It will drive our nation toward sustainable freight mobility , a cleaner future, and the realization of Viksit Bharat by 2047, in alignment with our net-zero emissions goal by 2070.' Key sectors expected to benefit include cement, ports, steel, and logistics. OEMs such as Tata Motors, Ashok Leyland, and Volvo Eicher are already engaged in e-truck manufacturing in India. The Steel Authority of India Limited (SAIL) has committed to procure 150 e-trucks over the next two years for deployment at various locations and has set an internal target of ensuring that at least 15% of all hired vehicles across its units are electric. Eligibility under the scheme is conditional upon the scrapping of old polluting trucks.
Time of India
a day ago
- Automotive
- Time of India
Why India's e-truck incentive scheme can be a gamechanger for the economy and the environment
On July 11, 2025, when the Ministry of Heavy Industries officially released guidelines for subsidies under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, it marked a historic moment for India's transport sector. For the first time, electric trucks (e-trucks) are being supported by specific incentives at the national level. With a budget allocation of ₹500 crore aimed at supporting around 5,500 e-trucks, this initiative provides a critical push to decarbonize India's freight sector—one of the largest and fastest-growing sources of emissions in the country. Under the new guidelines, medium- and heavy-duty trucks (MHDTs), which are those with a gross vehicle weight of 3.5 tonnes and above, are eligible for subsidies of ₹5,000 per kWh of battery capacity. These subsidies are capped between ₹2.7 lakh and ₹9.6 lakh per vehicle, depending on the different categories of gross vehicle weight, and provide meaningful cost relief for early adopters. Until now, national-level schemes such as FAME I and FAME II have largely focused on electric passenger vehicles including private two- and three-wheelers and public buses. While there was some provision for the electrification of smaller light commercial vehicles, it was limited. Furthermore, earlier initiatives like the Jawaharlal Nehru National Urban Renewal Mission primarily targeted buses and urban transport infrastructure. By including e-trucks, the PM E-DRIVE scheme is recognizing the critical role of goods movement in India's transport ecosystem. Here's why this shift can be a gamechanger both economically and environmentally. 1. Accelerated climate action and improved air quality E-trucks are central to India's climate commitments. Life-cycle assessments have estimated that greenhouse gas emissions from e-trucks are 17 per cent–37 per cent less than from diesel trucks, even with today's power grid. When powered by renewable energy, these life-cycle emissions drop by as much as 85 per cent–88 per cent. To meet its long-term climate targets—including achieving net-zero emissions by 2070—analysis by the ICCT projects that India will need 100 per cent zero-emission trucks in new sales by mid-century. Moreover, as e-trucks produce no tailpipe emissions, they are vital for improving air quality in freight hotspots such as ports, warehouses, logistics hubs, and industrial clusters. This leads to better public health outcomes for communities living near these zones. 2. Reduced operating costs and unlocking industrial use cases Although e-trucks currently cost 2 to 3.5 times more to purchase than equivalent diesel trucks, their lower operating and maintenance costs help narrow the total cost of ownership gap to about 1.2–1.5 times. The PM E-DRIVE subsidies help bridge this gap even further and make e-trucks more attractive to fleet operators. Industries such as cement, steel, and port logistics offer promising early-adopter use cases. JK Lakshmi Cement, UltraTech Cement, JSW Cement, Tata Steel, and the Jawaharlal Nehru Port Trust have already begun piloting e-truck deployments for closed-loop freight movement. With effective charging infrastructure and strategic deployment, these pilots can succeed in demonstrating economic and operational viability. 3. Strengthened domestic manufacturing and supporting innovation To qualify for subsidies, e-truck models must meet phased manufacturing program (PMP) guidelines that promote indigenous production of key components like battery packs, battery management system (BMS), motors, heating, ventilation, and air conditioning (HVAC) systems, converters, and controllers. When combined with the Production-Linked Incentive (PLI) schemes for automotive components and advanced battery cells launched in 2021, this could substantially boost India's e-truck manufacturing ecosystem. India is the world's third-largest trucking market and the seventh-largest truck exporter. As global markets transition to electric freight, domestic capacity building will be essential to maintain India's competitiveness, create jobs, and ensure long-term value creation. 4. Improved logistics efficiency and reduced fuel dependency In recent years, India's logistics costs were estimated at around 14 per cent of gross domestic product—higher than the global average. About 70 per cent of freight moves via road, and fuel expenses are a substantial share of transport costs. By reducing fuel dependency, e-trucks can improve logistics cost as a share of gross domestic product and contribute to energy security. Moreover, transport contributes 14 per cent to India's total greenhouse gas emissions, and MHDTs are 40 per cent of that share. Electrifying this segment is therefore not just economically beneficial but also an environmental imperative. The PM E-DRIVE scheme is a vital first step in transitioning India's trucking sector towards a clean and atma-nirbhar (self-reliant) future. The Ministry of Heavy Industries has now addressed this long-overlooked segment and laid the foundation for systemic change. And it is only the beginning. For the transition to scale, the next frontiers include investing in nationwide charging infrastructure, facilitating access to affordable financing for fleet operators, and establishing long-term regulatory pathways. An important complementary step would be a swift rollout of the proposed fuel efficiency standards for MHDTs by the Bureau of Energy Efficiency, as such standards help level the playing field and drive faster adoption. The question is no longer if India will electrify its trucking fleet, but how fast it can lead the global charge. With the right mix of policies, industry collaboration, and public investment, India can set a benchmark for sustainable freight in the 21st century.
Time of India
a day ago
- Automotive
- Time of India
Government offers up to Rs 9.6 lakh worth of incentives on electric truck purchase
H D Kumaraswamy (File photo) NEW DELHI: Union minister H D Kumaraswamy on Friday launched the first scheme to provide customer facing incentives on purchase of electric trucks of up to Rs 9.6 lakh per vehicle as part of govt's PM E-DRIVE initiative, which has earmarked Rs 500 crore for electric trucks out of its Rs 10,900 crore outlay. Industries including ports, logistics, cement and steel will be the key beneficiaries of the scheme, which envisages support of up to 5,600 electric trucks. "Diesel trucks, though constituting only 3% of the total vehicle population, contribute to 42% of transport-related greenhouse gas emissions and significantly worsen air pollution. This pioneering scheme ...represents India's first dedicated support for electric trucks. It will drive our nation toward sustainable freight mobility," minister for heavy industries and steel Kumaraswamy said. The scheme reserves incentives for approximately 1,100 e-trucks registered in Delhi, which will address the air quality concerns in the national capital. An approximate outlay of Rs 100 crore has been earmarked for this, officials said. Scrapping of old polluting trucks is mandatory to avail incentives for e-trucks. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
a day ago
- Automotive
- The Hindu
Centre earmarks ₹500 crore for e-truck purchases under PM E-Drive scheme
The Centre on Friday unveiled a scheme to provide financial incentives for purchase of electric trucks under the PM E-Drive initiative, where a sum of ₹500 crore has been set aside for 5,600 electric trucks. Of this financial outlay, a fifth is dedicated for vehicles registered in Delhi. The sum of ₹500 crore is within the total outlay of ₹10,500 crore for the PM E-drive scheme, which came into effect in October 2024 for a period of two years to support the shift to electric mobility in the country. The scheme for e-trucks offers a maximum incentive set at ₹9.6 lakh per vehicle. The incentive will depend on the gross vehicle weight of the electric truck and will cover those above 3.5 tonnes and up to 12 tonnes of weight (N2 category), and trucks weighing between 12 tonnes and up to 55 tonnes. These incentives will be offered as an upfront reduction in the purchase price and reimbursed to OEMs via the PM E-DRIVE portal on a first-come, first-serve basis, a the Ministry of Heavy Industries said in a press statement. To receive the incentive, the manufacturer will have to provide warranties for battery for a period of five years or 5 lakh kilometres, and for the vehicle and motor for a period of five years and 2.5 lakh kilometres. To qualify for the incentives, the scrapping of old, polluting trucks is also mandatory. A dedicated provision for 1,100 e-trucks registered in Delhi has also been made at an estimated cost of ₹100 crore within this scheme in order to address the capital's air quality challenges. 'Diesel trucks, though constitute only 3% of the total vehicle population, contribute to 42% of transport-related greenhouse gas emissions and significantly worsen air pollution. This pioneering scheme, represents India's first dedicated support for electric trucks,' said Minister for Heavy Industries H.D. Kumaraswamy. 'The FAME scheme did not have any component on electric trucks and this scheme is the first time that the government is launching a customer-facing electric truck scheme in which we are directly encouraging the customers to purchase electric trucks by providing them a reasonable subsidy, so that this movement can be driven from demand side as well as supply side,' said Secretary in the Heavy Industries Ministry Kamran Rizvi. Friday's announcement is within the framework of the PM E Drive scheme approved by the Cabinet in September last year. The scheme for promotion of electric mobility in the country has an outlay of ₹10,900 crore over a period of two years. It lays down subsidies or demand incentives worth ₹3,679 crore for electric two-wheelers, three-wheelers, ambulances, e-trucks and other emerging EVs. The scheme supports 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses. The government has already extended support for 1.6 lakh three wheelers, 12 lakh two wheelers and 10,400 buses, which include 4,500 buses for Bengaluru, 2,800 buses for Delhi, 2,000 buses for Hyderabad, 1,000 buses for Ahmedabad and 600 for Surat. The Ministry will announce the scheme for e-ambulances by December 2025 or January 2026. (With PTI inputs)
Time of India
a day ago
- Automotive
- Time of India
Electric truck push: Government offers up to Rs 9.6 lakh incentive per vehicle under PM E-DRIVE; SAIL to procure 150 e-trucks
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 , has earmarked Rs 500 crore for e-truck incentives out of a total Rs 10,900 crore programme outlay. Tired of too many ads? go ad free now 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 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. Tired of too many ads? go ad free now 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.
