India Launches First-Ever e-Truck Incentive Scheme under PM E-DRIVE: Up to ₹9.6 Lakh Per Vehicle for Sustainable Freight Mobility

PM E-DRIVE – Electric Truck Incentive Scheme (2025)

Exam Level: UPSC / Environment & Economy | Content Type: Notes + MCQs

⚡ 1️⃣ Scheme Overview

On July 11, 2025, Union Minister H.D. Kumaraswamy launched India’s first targeted incentive scheme for electric trucks (e-trucks) under the PM E-DRIVE initiative.

🚛 Target: Deployment of 5,600 electric trucks across India. 💰 Subsidy: Up to ₹9.6 lakh per truck.

📊 2️⃣ Key Features

Component Details
Eligible Categories N2 & N3 (3.5–55 tonnes GVW)
Subsidy Model First-come, first-served via PM E-DRIVE Portal
Battery Warranty 5 years or 5 lakh km
Vehicle/Motor Warranty 5 years or 2.5 lakh km
Environmental Condition Mandatory scrapping of old polluting trucks

🌆 3️⃣ Delhi-Specific Allocation

  • ₹100 crore dedicated outlay
  • Support for 1,100 e-trucks in Delhi
  • Aims to reduce urban air pollution
Diesel trucks are only 3% of vehicles but contribute 42% of transport emissions.

🏭 4️⃣ Sectoral Impact & Budget

  • Beneficiary sectors: Cement, Ports, Steel, Logistics
  • CPSE Participation: SAIL to procure 150 e-trucks
  • Total PM E-DRIVE Outlay: ₹10,900 crore
  • E-truck Component: Approx. ₹500 crore
  • Extended till: March 2028

📝 5️⃣ Multiple-Choice Questions (MCQs)

Question 1:
The electric truck incentive scheme was launched under:
A) FAME-III
B) PM E-DRIVE
C) NEMM
D) Clean Freight Scheme

Answer: B
Explanation: The scheme is part of PM E-DRIVE initiative.
Question 2:
Maximum subsidy per e-truck?
A) ₹5 lakh
B) ₹7.8 lakh
C) ₹9.6 lakh
D) ₹10.5 lakh

Answer: C
Explanation: Up to ₹9.6 lakh per truck.
Question 3:
Eligible vehicle categories:
A) Only two-wheelers
B) N1 & N2
C) N2 & N3
D) Only buses

Answer: C
Explanation: Covers N2 and N3 trucks.
Question 4:
Mandatory condition to avail incentive:
A) Imported batteries
B) Scrapping old trucks
C) Solar panels
D) Diesel ownership

Answer: B
Explanation: Old polluting trucks must be scrapped.
Question 5:
Delhi allocation under scheme:
A) ₹50 crore
B) ₹100 crore for 1,100 trucks
C) ₹200 crore
D) No allocation

Answer: B
Explanation: ₹100 crore supports 1,100 e-trucks in Delhi.
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