The Ministry of Heavy Industries (MOHI) on Friday notified an incentive scheme to improve the deployment of electric trucks in India, under the PM Electric Drive Revolution in the Innovative Vehicle enhancement scheme.
The Government has recently allocated Rs 500 crore from the total Rs 10,900 crore under the PM E-Drive scheme to support the sale of 5,643 electric trucks in the Fiscal year 2026. As per the guidelines, the incentives apply to electric trucks weighing over 3.5 tonnes but less than 55 tonnes, and will be applicable only for the “puller tractor” of N3 category in the case of an articulated vehicle.
The New Incentives
The incentives would range between Rs 2.7 lakh and Rs 9.3 lakh and will be calculated either as Rs 5,000 per KWH of battery capacity or 10% of the ex factory price, whichever is lower. These incentives would be offered as an upfront reduction in purchase price and reimbursed to OEMs via the PM-E drive portal on a first-come, first-served basis.
The incentives would only be provided upon submission of a certificate of deposit (CD) or scrapping certificate issued by – MORTH-authorized registered vehicle scrapping facility, for an internal combustion engine.
Eligibility for Incentives
The eligibility for receiving the incentives would include a minimum battery warranty of 5 years or 5,00,000 km, a motor warranty of 5 years or 2,50,000 km and a vehicle warranty of 5 years or 2,50,000 km. The Ministry has further revealed that although commercial diesel trucks constitute to only 3% of the total vehicle pollution, they contribute to 42% of transport-related greenhouse gas emissions and significantly worsen air pollution.
The ministry has provisioned for 1,100 e-trucks registered in Delhi with an estimated outlay of Rs 100 crore aimed at addressing the national capital’s air quality challenges. The ministry also put forth the idea that it expects key sectors, such as the Cement Industry, ports, steel, and the logistics sector, to benefit from the electric truck scheme. Several equipment manufacturers (OEMs) such as Volvo, Eicher and Tata Motors, and Ashok Leyland are already manufacturing electric trucks in India. As per the ministry statement, the Steel Authority of India Limited has committed to procure 150 e-trucks over the next two years for deployment across multiple locations.
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