PM E-Drive subsidy for e-trucks only for those with scrapping certificate

The Indian government has introduced a new incentive under the PM E-Drive scheme, specifically targeting electric trucks. This is the first time electric trucks are being included in a government electric vehicle demand incentive program. However, to qualify for the subsidy, consumers must purchase an electric truck using a Certificate of Deposit (CD) obtained after scrapping an old vehicle.

Key Details of the PM E-Drive Scheme:

1. Scrapping Certificate Requirement

   • Eligibility: To avail the subsidy for electric trucks, consumers need to present a scrapping certificate from vehicle scrapping centers approved by the Ministry of Road Transport and Highways (MoRTH).
   • Certificate Usage: The certificate is tradable, so first-time truck owners who have not previously owned a truck can still benefit by obtaining a scrapping certificate from someone else.

2. Policy Impact

   • Boost to Scrappage Policy: This requirement is expected to support the government’s vehicle scrappage policy, which aims to reduce carbon emissions from older trucks and promote cleaner alternatives.
   • Environmental Impact: Trucks, being major contributors to carbon emissions, are a focal point for this policy to help mitigate environmental impact.

3. Incentives and Subsidy Details

   • Funding: Under the PM E-Drive scheme, the government has allocated Rs 10,900 crore, with Rs 500 crore earmarked for incentives specifically for electric trucks.
   • Subsidy Amount: The exact subsidy amount per vehicle is yet to be determined, as consultations with stakeholders are ongoing.

4. Vehicle Scrappage Policy (Introduced in 2022)

   • Program Goals: The Vehicle Scrapping Policy supports vehicle scrapping through incentives and infrastructure like automated testing stations and registered scrapping facilities.
   • Benefits of Scrapping: Owners receive various benefits, including waivers on registration fees, road tax concessions, and discounts on new vehicle purchases.

5. Industry Response

   • Automaker Discounts: Most Original Equipment Manufacturers (OEMs) have agreed to provide discounts of up to 3% on new vehicle purchases for those who scrap their old vehicles.