The Ministry of Heavy Industries (MHI) convened a high-level meeting on May 20 in New Delhi to discuss financing mechanisms for the adoption of electric buses and electric trucks in the private sector.
The meeting, chaired by Union Minister for Heavy Industries and Steel H. D. Kumaraswamy, included representatives from public and private sector banks such as SBI, Punjab National Bank, Canara Bank, Central Bank of India, HDFC and SIDBI, along with bus and truck operators, transport associations and private travel companies.
Discussions focused on financing challenges related to electric commercial vehicle adoption and possible support measures, including credit guarantee schemes and interest subvention mechanisms. According to the ministry, these measures are intended to reduce lending risks for financial institutions and lower borrowing costs for private operators.
Proposed measures discussed during the meeting included credit guarantee schemes aimed at reducing lending risks for financial institutions and interest subvention mechanisms intended to lower borrowing costs for private sector buyers.
The ministry noted that buses continue to play a central role in public mobility while trucks account for a substantial share of domestic freight movement. It also highlighted that the commercial vehicle segment contributes significantly to road transport emissions, fuel consumption and particulate matter pollution, making electrification an important component of India’s decarbonisation and net-zero goals.
MHI said the initiative is aimed at bringing together government departments, financial institutions and industry stakeholders to develop financing solutions that address barriers to electric vehicle adoption in the commercial vehicle segment.