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SSC Foundation Arjuna - 18 Offline Cum Online Batch Lucknow Branch
21 July, 2025
First Electric Truck Incentive Scheme
Sun 13 Jul, 2025
Context:
- The Ministry of Heavy Industries, Government of India, has launched the first “Electric Truck Incentive Scheme” under the PM e-DRIVE initiative.
Key Highlights:
Launched by: Union Minister for Heavy Industries, H.D. Kumaraswamy
Objectives:
- To provide financial incentives for electric trucks (e-trucks) under the PM e-DRIVE initiative
- To promote clean, sustainable, and pollution-free freight transport in the country
- To accelerate the development of clean, efficient, and long-term goods transportation
- To offer direct assistance for electric trucks
Scheme Analysis:
| Aspect | Details |
| Target Categories | Electric trucks in N2 and N3 categories, with Gross Vehicle Weight (GVW) ranging from 3.5 to 55 tonnes. N2: 3.5–12 tonnes; N3: 12–55 tonnes |
| Subsidy Amount | A maximum subsidy of ₹9.6 lakh per vehicle will be provided as an upfront discount on the purchase price. This will be reimbursed to manufacturers via the PM e-DRIVE portal on a first-come, first-served basis. |
| Warranty Conditions | 5 years or 5 lakh km warranty on batteries, and 5 years or 2.5 lakh km warranty on vehicles and motors, ensuring vehicle reliability. |
| Environmental Benefit | Mandatory scrapping of old polluting diesel trucks, promoting cleaner freight transport and reducing emissions. |
| Beneficiaries | About 5,600 electric trucks to benefit. Special incentives for 1,100 e-trucks in Delhi to improve air quality in the national capital. |
| Budget Allocation | ₹500 crore allocated for electric trucks, as part of the ₹10,900 crore total budget under the PM e-DRIVE scheme. |
| Beneficiary Sectors | Sectors such as ports, logistics, cement, and steel will benefit. Major manufacturers like Tata Motors, Volvo-Ashok Leyland, and Eicher are active in this segment. |
| Implementation Mechanism | Subsidy will be provided as a direct discount on the vehicle price, and reimbursed to manufacturers via the PM e-DRIVE portal. |
Note:- This scheme is a significant step toward achieving India’s Net Zero Carbon Emission target by 2070.
Prime Minister e-DRIVE Scheme (PM e-DRIVE):
- Nodal Ministry: Ministry of Heavy Industries (MHI)
- Cabinet Approval/Notification: September 2024
- Implementation Period: October 2024 to March 2026
- Total Budget: Approx. ₹10,900 crore
- Objective: To rapidly promote the use of Electric Vehicles (EVs) in the country, establish robust charging infrastructure, and develop a domestic EV manufacturing ecosystem
- Goals: Increase EV demand, promote clean and sustainable urban mobility, and make India a self-reliant EV manufacturing hub
- Applicable Vehicle Categories: Electric buses, cars, two-wheelers, three-wheelers, and heavy vehicles like electric trucks (N2 & N3 category)
- Eligible Categories: E-2 wheelers, E-3 wheelers (e-rickshaws, e-carts, L5), e-ambulances, e-trucks, e-buses, charging infrastructure, and upgradation of testing agencies.