India Launches First Incentive Scheme for E-Trucks Under Green Freight Plan
Photo Credit: PIB
In a major step toward promoting clean transportation and sustainable freight, the Government of India has launched its first-ever incentive scheme for electric trucks under the PM E-DRIVE initiative. Spearheaded by Union Minister for Heavy Industries & Steel, H.D. Kumaraswamy, the scheme reflects Prime Minister Narendra Modi’s vision for a green mobility revolution and a net-zero emission future by 2070.
The scheme offers a financial incentive of up to ₹9.6 lakh per electric truck, covering N2 and N3 category vehicles under the Central Motor Vehicle Rules. The N2 category includes trucks weighing between 3.5 and 12 tonnes, while the N3 category applies to those above 12 tonnes, up to 55 tonnes. Articulated vehicles are eligible only for the incentive on the puller tractor unit.
Minister Kumaraswamy highlighted the urgency of the initiative, noting that while diesel trucks make up just 3% of India’s total vehicle population, they contribute to 42% of transport-related greenhouse gas emissions. The scheme is aimed at shifting the freight sector toward cleaner alternatives while making electric trucks more affordable for operators.
The incentives will be provided as an upfront discount at the time of purchase and reimbursed to Original Equipment Manufacturers (OEMs) via the PM E-DRIVE portal on a first-come, first-served basis. Manufacturers must ensure comprehensive warranties: five years or 5 lakh kilometres for the battery, and five years or 2.5 lakh kilometres for the vehicle and motor.
The scheme targets the deployment of around 5,600 e-trucks nationwide, with a special allocation of 1,100 e-trucks for Delhi, backed by ₹100 crore in funding, to address the capital’s severe air pollution. Sectors expected to benefit include cement, steel, ports, and logistics, with Indian OEMs like Tata Motors, Ashok Leyland, and Volvo Eicher already active in e-truck manufacturing.
As part of its leadership role, SAIL (Steel Authority of India Limited) has committed to buying 150 e-trucks over the next two years and aims to ensure that 15% of all hired vehicles are electric. The scheme also mandates the scrapping of old diesel trucks to qualify for incentives, helping to modernize fleets and cut emissions.
This bold initiative supports the Government’s goal of developing a self-reliant and clean transport ecosystem under the Atmanirbhar Bharat campaign, while boosting industrial adoption of electric mobility and reducing logistics costs across India.
Source: PIB
