Context:

The Government of India has launched its first-ever incentive scheme for electric trucks (e-trucks) under the PM E-DRIVE Scheme. Heavy Industries Minister H.D. Kumaraswamy officially launched the scheme, aiming to support the deployment of approximately 5,600 e-trucks across the country.

Key Features of the Scheme:

• The scheme provides financial incentives for N2 and N3 category e-trucks, with demand incentives ranging up to ₹9.6 lakh, depending on the gross vehicle weight.
• The N2 category includes trucks with a gross vehicle weight of above 3.5 tonnes and up to 12 tonnes, while the N3 category covers those exceeding 12 tonnes up to 55 tonnes.

Benefits of the Scheme:

• The scheme is expected to promote indigenous manufacturing, reduce logistics costs, and lower the carbon footprint of the transportation sector.
• The potential beneficiaries of the scheme include e-truck users in the cement, ports, steel, and logistics sectors.
• To ensure the reliability of electric trucks, manufacturers will provide a comprehensive manufacturer-backed warranty, including a five-year or 500,000-kilometer warranty for the battery.

Implications:

• The scheme is a strategic move to support India's commitment to reducing vehicular emissions and achieving its net-zero 2070 goals.
• By promoting the adoption of e-trucks, the government aims to decrease the country's reliance on fossil fuels and lower greenhouse gas emissions.
• To avail of incentives, scrapping old polluting trucks is mandatory, ensuring that the scheme contributes to a cleaner and more sustainable transportation sector.

About PM E-DRIVE Scheme:

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) is a flagship EV promotion scheme approved by the Cabinet with an outlay of ₹10,900 crore, effective from October 2024 to March 2026.

Objective of the scheme:

• Accelerate the adoption of electric vehicles (EVs) across multiple vehicle categories
• Establish widespread EV charging infrastructure
• Develop a domestic EV manufacturing ecosystem aligned with Aatmanirbhar Bharat

Types of vehicles eligible for incentives:

• Electric 2-wheelers (e-2Ws) and 3-wheelers (e-3Ws) (private & commercial)
• Electric buses for public transport
• E-ambulances
• E-trucks with scrapping certificates

Key incentive provisions

• Incentive is capped at 15% of the ex-factory price or a fixed per-vehicle limit (whichever is lower)
• Only EVs priced below a notified threshold qualify

Conclusion

The launch of the incentive scheme for e-trucks is a significant step towards promoting clean freight mobility in India. With its focus on reducing emissions, promoting indigenous manufacturing, and lowering logistics costs, the scheme is expected to have a positive impact on the transportation sector. By supporting the adoption of e-trucks, the government is working towards a more sustainable and environmentally friendly transportation system for the country.