MHI notifies guidelines for e-truck incentive scheme under PM E-DRIVE

The Ministry of Heavy Industries (MHI) has issued detailed guidelines for the “Scheme to Promote Deployment of Electric Trucks in India” under the PM E-DRIVE initiative. 

The scheme aims to accelerate the adoption of electric freight vehicles in the country by offering financial incentives for electric trucks (e-trucks) in the N2 and N3 categories, as defined by the Central Motor Vehicle Rules.

N2 trucks are classified as those with a gross vehicle weight (GVW) above 3.5 tonnes and up to 12 tonnes, while N3 trucks have a GVW exceeding 12 tonnes and up to 55 tonnes. The maximum incentive available under the scheme is Rs 960,000 per vehicle. This incentive will be provided as an upfront discount on the purchase price and reimbursed to original equipment manufacturers (OEMs) on a first-come, first-served basis through the PM E-DRIVE portal.

The scheme has been designed to support the deployment of approximately 5,600 e-trucks. Out of this, 1,100 e-trucks have been specifically allocated for deployment in Delhi, backed by an estimated outlay of Rs 1 billion. This targeted allocation aims to tackle air quality concerns in the capital.

Eligible e-trucks must be backed by a five-year warranty for the battery or 500,000 kilometres, whichever comes earlier. The vehicle and motor must also be covered under warranty for five years or 250,000 kilometres. Participation in the scheme is conditional on the scrapping of old, polluting diesel trucks, ensuring that emissions reduction is accompanied by fleet modernisation.

The initiative is expected to benefit sectors with high freight movement, such as cement, steel, ports, and logistics. Several domestic OEMs are already manufacturing electric trucks. Steel Authority of India Limited (SAIL) has committed to procuring 150 e-trucks over the next two years and aims to ensure that at least 15 per cent of vehicles hired across its operations are electric.

Speaking on the launch, Union Minister H.D. Kumaraswamy highlighted that although diesel trucks make up only 3 per cent of India’s vehicle population, they account for 42 per cent of transport-related greenhouse gas emissions. He described the scheme as India’s first dedicated push for electric trucks, marking a major step toward sustainable freight transport and aligning with the national goal of net-zero emissions by 2070.