MHI Launched National Incentive Scheme for 5600 Electric Trucks across Sectors

Ministry of Heavy Industries (MHI) has rolled out India’s first demand-linked incentive scheme exclusively for electric trucks under the PM E-DRIVE initiative. The scheme, aimed at catalysing the adoption of electric heavy commercial vehicles across logistics-intensive sectors, is set to support the deployment of 5,600 e-trucks across the country.

Backed by a ₹500 crore allocation from the ₹10,900 crore PM E-DRIVE budget, this policy intends to replace older diesel-fuelled trucks with clean-energy alternatives in high-emission verticals such as steel, ports, cement, and logistics. According to officials, this is the first time electric freight mobility has received targeted support under a centrally-sponsored incentive framework. Each eligible truck can receive up to ₹9.6 lakh in incentive, depending on its gross vehicle weight (GVW), which includes N2 and N3 category trucks under Central Motor Vehicle Rules. These incentives will be provided upfront as purchase discounts and later reimbursed to Original Equipment Manufacturers (OEMs) via the PM E-DRIVE portal on a first-come, first-served basis.

The scheme is linked to India’s broader ambition of achieving net-zero emissions by 2070 and accelerating progress toward a developed economy under the government’s “Viksit Bharat 2047” vision. A senior official from MHI highlighted the programme’s role in driving down both operational costs and tailpipe emissions while modernising India’s commercial vehicle fleet. In a strategic move, 1,100 of the 5,600 e-truck allocation have been earmarked for the National Capital Territory of Delhi, which continues to face severe air pollution challenges. The deployment in Delhi will be supported by a ₹100 crore fund aimed at transforming the capital’s freight mobility with greener alternatives.

In an effort to ensure reliability, the scheme mandates manufacturer-backed warranties for e-trucks — five years or five lakh kilometres for the battery, and five years or 2.5 lakh kilometres for the vehicle and motor, whichever comes earlier. Moreover, to qualify for incentives, the scrapping of an old diesel truck is compulsory, aligning the scheme with India’s larger vehicle scrappage policy. The scheme has garnered strong support from public sector entities. Steel Authority of India Limited (SAIL), for instance, has committed to procuring 150 electric trucks over the next two years. Officials also stated that a minimum of 15% of hired transport vehicles within public sector units will be electric moving forward.

Though diesel trucks comprise just 3% of India’s total vehicle fleet, they account for an alarming 42% of transport-related greenhouse gas emissions. With the electric truck segment still nascent in India, the launch of a dedicated incentive structure is expected to catalyse investment, stimulate manufacturing, and scale the deployment of commercial EVs. Industry stakeholders see the scheme as a long-overdue intervention that places electric trucks at the centre of India’s green freight revolution, while enabling industrial sectors to decarbonise their logistics backbone.

MHI Launched National Incentive Scheme for 5600 Electric Trucks across Sectors