PM E-DRIVE: e-Truck Incentive Scheme Unveiled

To facilitate green and affordable logistics, India has launched the country-premier e-Truck Incentive Scheme as the expanded part of the PM E-DRIVE. The scheme will make financial incentives of up to 9.6 lakhs per electric truck to be able to adopt green freight vehicles faster in the country. The policy focuses on cross-border regulation of medium and heavy-duty electric trucks (N2 and N3 segments), which are supposed to help reduce emissions and logistics cost to accommodate EV production. It expands FAME-II massively both in terms of varieties of electric vehicles and infrastructure. The move aids the ongoing drive by India to limit its carbon emissions in the transport industry, which depends largely on diesel.

Context

• The transporter industry, especially the diesel vehicles, has been a huge contributor to carbon emissions in India although a minute %age of the entire vehicles in the country.
• In order to address the same, the Ministry of Heavy Industries (MHI), guided by the Prime Minister, released the PM E-DRIVE Initiative, and the e-Truck Incentive Scheme forms the key aspect of this initiative.

Key Details for RAS Mains

Environmental, Economical Rationale

• Diesel Cars = 3% of the Indian vehicle com and 42 % of the transport emissions.
• The transport and logistics industry is the main source of the pollution, and to ensure India achieves its 2070 net-zero commitment, this transportation mode will definitely have to be electrified.
• Assists to cut down on logistics costs that already make up 13-14 % of GDP.

About PM E-DRIVE Initiative

• PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) is a detailed EV promotion plan, which seeks to surpass the FAME- II framework.

Strategic Importance

• Green Logistics Boost: It renders freight cost effective and sustainable in nature.
• Make in India: Give a boost to local EV manufacturers and MSME.
• Public-Private Partnership: It encourages fleet owners and logistics organizations to transform to the use of EVs.
• International Conventions: The COP26 climate targets of India and National Electric Mobility Mission Plan (NEMMP).

Challenges

• Expensive initial price in spite of subsidies of e-trucks
• The deficiency of long-haul charging capabilities
• Freight life and performance of the battery
• Opposition of the traditional truckers

Suggestions

• Construct cross-country EV routes with charging points that are truck friendly
• Provide subsidy on interests of loans or tax relief in converting fleet
• Promote battery switch approaches
• Be integrated into logistic platforms (e.g. ONDC in terms of freight)

Conclusion for RPSC

The e-Truck Incentive Scheme with the Prime Minister E-DRIVE is a stepping stone towards the green mobility mission by India. The focus on the most polluting segment, diesel trucks, will make it the game-changer in the field of freight transportation, save on logistics expenses, and stimulate the development of India as an EV manufacturing ecosystem. It plays an important role in the greater picture of sustainable development and carbon neutrality of India.