India Allocates Rs 500 Crore for Electric Trucks Under PM E-DRIVE Scheme


By Priya Singh

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Updated On: 15-Nov-2024 08:59 AM


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The PM E-DRIVE scheme has set aside Rs 500 crore for electric ambulances and trucks to reduce the use of fossil fuels.

Key Highlights:

The Ministry of Heavy Industries (MHI), in partnership with the International Council on Clean Transportation (ICCT), hosted a knowledge exchange session. The focus was on how to best use the Rs 500 crore allocated under the PM E-DRIVE Scheme, which is now extending to the truck sector. This initiative supports India’s shift to electric trucks (e-trucks), aiming to boost energy security and meet climate goals.

Event Highlights

The event, titled India E-Truck Exchange, took place in New Delhi and gathered key stakeholders, including Original Equipment Manufacturers (OEMs), logistics providers, and industry leaders. The session explored ways to deploy funds for e-truck incentives and reduce emissions from the transportation sector. 

Despite medium- and heavy-duty trucks making up only 3% of the fleet, they account for 44% of CO₂ emissions, emphasizing the need for a switch to electric trucks. This project aligns with the Supreme Court's decision for a diesel truck replacement policy by January 2024, emphasizing the importance of implementing greener transportation options.

Importance of Electric Trucks

Kamran Rizvi, Secretary at MHI, stressed the importance of electric trucks for India’s transport transition, saying, “For electric trucks, the journey has just begun. Let’s make full use of the Rs 500 crore allocated under the PM E-DRIVE for electric trucks.”

Hanif Qureshi, Additional Secretary at MHI, highlighted the dual benefits of electric trucks in cutting fuel costs and improving air quality. He pointed out that the heavy transport sector contributes 18% of pollution in India, making electric trucks vital for cleaner transport. The consultation aims to propose rules to speed the deployment of electric trucks.

Sudhendu J. Sinha, Adviser, NITI Aayog (Infra-Connectivity & E-Mobility), emphasized the potential of electric trucks in India, saying, "We want to deploy as many vehicles as possible through this corpus so that the transition goes seamlessly. The Rs 500 crore allotted for electric trucks in the PM E-DRIVE plan aims to accelerate the transformation."

Amit Bhatt, India Managing Director of ICCT, mentioned that this initiative aligns with both global and national environmental goals. To achieve net-zero emissions by 2070, India will need to electrify its entire road transport sector, including trucks, by 2045-2050.

The PM E-DRIVE Scheme and Its Impact

The PM E-DRIVE scheme has set aside Rs 500 crore for electric ambulances and trucks to reduce the use of fossil fuels. The scheme also includes Rs 2,000 crore for building charging stations and Rs 4,391 crore for electric public transport, which will include more than 14,000 electric buses. These efforts aim to tackle pollution in cities and lower greenhouse gas emissions.

Market Growth and Environmental Benefits

India’s medium- and heavy-duty truck sector, with around 4.5 million trucks on the road, accounted for 41% of total oil usage in road transport in 2021. Research shows that electric trucks can produce 17%-29% fewer greenhouse gas emissions than diesel trucks and up to 83% fewer when powered by renewable energy. They are also 65% more fuel-efficient, leading to significant cost savings.

Also Read: Government Introduces Incentives for Electric Trucks under PM E-Drive Scheme

CMV360 Says

The PM E-DRIVE Scheme and India E-Truck Exchange show India’s push for cleaner transport. Electric trucks can reduce pollution, especially in cities like New Delhi, where diesel trucks harm air quality. This move will help India save money, reduce pollution, and become more energy-independent. If successful, it could transform the transport sector and benefit both the environment and the economy.