Govt. Mulling Incentives To Boost Electric Truck Adoption

The government is exploring a slew of incentives to boost the adoption of electric trucks across India, with special focus on select "priority routes" connecting major cities, says a report by Times Of India.

According to sources familiar with the proposal, as quoted by the report, the Delhi-Chandigarh, Delhi-Jaipur, Mumbai-Nashik, Mumbai-Pune, and Agra-Lucknow highway corridors have been identified as initial target segments. 

These routes were selected specifically because they typically require five-to-six hours of travel time, making them suitable for electric truck operations.

Broader Electric Vehicle Push

The initiative falls under the PM e-Drive programme, which has already witnessed significant demand in the electric two- and three-wheeler segments, with allocated subsidies expected to be depleted within months.

The Ministry of Heavy Industries, which is spearheading the Rs 500 crore scheme for electric trucks, has conducted extensive consultations with multiple ministries and industries including steel, cement, ports, and logistics sectors to gather input before finalising the implementation plan.

Industrial Corridors Under Consideration

Some of the designated priority routes will include dedicated corridors for cement and steel transportation as well as movement within port areas. The ministry has also studied electric truck deployment models from Europe and China, which lead globally in commercial EV adoption.

The Power Ministry has highlighted the need for grid strengthening to handle increased electricity demand from charging infrastructure, sources indicated.

Subsidy Structure 

The financial support for each vehicle will be determined based on size categories, while operating within the overall budget limitations. Government officials believe these incentives are essential to encourage truck operators to transition to electric vehicles, similar to patterns observed in two-wheeler and passenger vehicle segments.

In a related development, Tata Motors and Force Motors have expressed interest in manufacturing electric ambulances, which are also covered under the scheme.

Interest In Electric Bus Programme

A government official reported overwhelming interest in the electric bus initiative, with Delhi, Bengaluru, Surat, Ahmedabad, and Hyderabad already submitting proposals for 15,400 buses against available funding for 14,000 units. Major cities including Mumbai, Pune, Kolkata, and Chennai are yet to submit their applications.

The Heavy Industries Ministry plans to issue tenders for 10,000-11,000 buses to the five cities that have submitted proposals, with subsidies capped at Rs 35 lakh per bus.