India Officially Launched Its First-ever E‑truck Incentive Scheme

Syllabus: GS3/Environment

Context

• The Centre unveiled a scheme to provide financial incentives for purchase of electric trucks under the PM E-Drive initiative, where a sum of ₹500 crore has been set aside for 5,600 electric trucks.
  • Of this financial outlay, a fifth is dedicated for vehicles registered in Delhi.

About

• This is India’s first dedicated scheme for electric trucks, which were not included under the earlier FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme.
• Eligibility Conditions: Manufacturers must provide a battery warranty of 5 years or 5 lakh kilometres, whichever is earlier.
  • The vehicle and motor must carry a warranty of 5 years or 2.5 lakh kilometres.
  • To receive the incentive, scrapping of old, polluting diesel trucks is mandatory.

About PM E-DRIVE Scheme

• The scheme shall be implemented from October 1, 2024 to March 31, 2026.
• The EMPS-2024 (Electric Mobility Promotion Scheme) is being subsumed under the PM E-DRIVE scheme.
• Subsidy: The subsidy under the scheme for electric two-wheelers has been fixed based on battery power at Rs 5,000 per kilowatt hour but the overall incentive will not exceed Rs 10,000 in the first year.
  • In the second year, it will be halved by Rs 2,500 per kilowatt hour, and the overall benefit will not exceed Rs 5,000. 
  • Three-wheelers, including e-rickshaws, will get a demand incentive of Rs 25,000 in the first year, which will be halved to Rs 12,500 in the second year.
  • For the L5 category (cargo three-wheelers), they will get a benefit of Rs 50,000 in the first year, and for the second year, it is Rs 25,000.
• e-Vouchers: Ministry of Heavy Industries is introducing e-vouchers for EV buyers to avail demand incentives under the scheme.
  • One vehicle per Aadhaar will be allowed. As soon as the vehicle is sold, e-voucher will be generated.
  • The signed e-voucher will be essential for OEM (original equipment manufacturer) to claim reimbursement of demand incentives under the scheme. 
• Charging Stations: The scheme addresses range anxiety of EV buyers by promoting in a big way the installation of electric vehicle public charging stations (EVPCS). 
  • These EVPCS shall be installed in select cities with high EV penetration and also on selected highways.

Source: TH