Government offers ₹9.6L per e-truck to cut freight emissions under PM Modi’s PM E-DRIVE green mobility push
In a bold move to green India’s freight corridors, the Government of India today launched its first-ever incentive scheme for electric trucks under the PM E-DRIVE initiative, marking a pivotal step toward decarbonising heavy-duty logistics.
Launched by Union Minister for Heavy Industries & Steel, Shri H.D. Kumaraswamy, the scheme reflects the clear intent of Prime Minister Narendra Modi’s government to power India’s net-zero ambitions with cleaner transport solutions. “Though diesel trucks make up just 3% of vehicles, they contribute a staggering 42% to transport-related emissions. This scheme is our direct intervention to reverse that imbalance,” Kumaraswamy said at the announcement in New Delhi.
The scheme will offer financial incentives of up to ₹9.6 lakh per vehicle for electric trucks in the N2 (3.5 to 12 tonnes) and N3 (above 12 tonnes to 55 tonnes) categories. This amount will be directly deducted from the purchase price and reimbursed to OEMs via the PM E-DRIVE portal on a first-come, first-served basis.
To ensure durability and performance, electric trucks eligible under this scheme must come with a five-year or 5 lakh km battery warranty and a five-year or 2.5 lakh km warranty for the motor and vehicle.
A major thrust of the scheme is to support the deployment of around 5,600 electric trucks across India. Notably, 1,100 of these have been earmarked for Delhi, a city battling serious air quality issues. An outlay of ₹100 crore has been reserved for this Delhi-specific push.
Industries that rely heavily on freight, like cement, steel, and port logistics, are set to benefit, as are OEMs like Tata Motors, Ashok Leyland, and Volvo Eicher, who are already active in the electric truck manufacturing space. The initiative is seen as a big boost for Make in India and Atmanirbhar Bharat in the EV segment.
In a show of public sector leadership, SAIL (Steel Authority of India Limited) has pledged to procure 150 electric trucks over the next two years and aims to ensure that at least 15% of vehicles hired across its units are electric.
Importantly, eligibility for this incentive requires scrapping older, polluting trucks, a move that not only promotes fleet modernisation but also enhances the scheme’s environmental impact.
Early reactions from the industry have been overwhelmingly positive. Transporters see the potential for lower operating costs, while sustainability advocates welcome the reduction in emissions and noise pollution.
This landmark initiative, spearheaded by the Ministry of Heavy Industries, marks a significant milestone in India’s clean mobility journey, driving the nation closer to its goal of achieving net-zero emissions by 2070 and realising the dream of Viksit Bharat by 2047.
India’s electric freight journey has officially begun, and it’s high voltage.
Source: PIB
