Centre launches Rs 500 crore scheme for manufacturing of electric trucks 

The Ministry of Heavy Industries On Friday launched guidelines for the manufacturing of electric trucks. Of the Rs 10,900-crore incentives under the PM-E Drive Scheme, the government has allocated Rs 500 crore for the manufacturing of electric trucks. 

Under the scheme, the incentive will depend on the gross vehicle weight of the electric truck between 3.5 tonne and 55 tonne. The incentive will be determined at ₹5,000 per kilowatt-hour (kWh) of battery capacity, capped at a maximum of 10% of the vehicle’s ex-factory price. The scheme will support the deployment of around 5-600 trucks across the country. Notably, the scheme reserves an approximate outlay of Rs 100 crore for Delhi, while supporting the deployment of 1,100 electric trucks in the national capital. 

“As of today 5600 trucks we have planned, but manufacturing capacity is going to be more than that,” Kamran Rizvi, Secretary, MHI told reporters. 

The government has determined two categories- N2 and N3 category electric trucks under the scheme. The N2 category includes trucks with gross vehicle weight (GVW) above 3.5 tonnes and up to 12 tonnes, while the N3 category includes electric trucks with GVW between 12 tonnes to 55 tonnes. 

Notably, electric trucks in the N1 category with a Gross Vehicle Weight (GVW) ranging from 3.5 to 7.5 tonnes are eligible for a maximum incentive of ₹2.7 lakh. For trucks with a GVW between 7.5 and 12 tonnes, the subsidy goes up to ₹3.6 lakh. However, to avail the subsidy, buyers must present a Certificate of Deposit (CD) issued after scrapping an old vehicle. The incentive is not applicable for the scrapping of old trucks. 

In the N2 category, trucks with a Gross Vehicle Mass (GVM) over 12 tonnes and up to 18.5 tonnes can receive up to ₹7.8 lakh. Those weighing between 18.5 and 35 tonnes are eligible for a subsidy of up to ₹9.6 lakh, while trucks with a GVM between 35 and 55 tonnes can get a maximum of ₹9.3 lakh.

Automakers such as Volvo Eicher Commercial Vehicles, Tata Motors, Ashok Leyland Olectra Greentech, Propel and IPL Tech are currently manufacturing electric trucks.