Electric trucks have been included in the government electric vehicle demand incentive program for the first time under the new PM E-Drive scheme. However, the incentives can be availed only if the consumer buys an electric truck with a Certificate of Deposit (CD) obtained after scrapping an old vehicle.
“Whoever wants to utilise the subsidy [for electric trucks], they have to get a scrapping certificate from vehicle scrapping centers approved by the Ministry of Road Transport and Highways. Without a scrapping certificate, the subsidy cannot be availed,” the Minister of Heavy Industries HD Kumaraswamy told reporters today.
However, this policy would not restrict first-time truck owners from availing of the incentive. “The consumer who didn’t previously own a truck can get a scrapping certificate from somebody else to avail of incentives while buying. The certificate is tradable,” the minister said.
The scrapping mandate for availing electric truck subsidy will be a boost to the government’s vehicle scrappage policy, which is yet to make a significant impact. “Trucks are the major transport vehicle and contribute significantly to much carbon emission,” he said.
Under the Rs 10,900-crore PM E-Drive scheme, the government plans to give incentives worth Rs 500 crore for electric trucks. The subsidy amount per vehicle is yet to be finalised. “We are consulting with the stakeholders to fix the subsidy amount per vehicle for electric trucks,” the minister said.
The Voluntary Vehicle-Fleet Modernisation Programme, or Vehicle Scrapping Policy, was introduced in 2022 to support vehicle scrapping through incentives and infrastructure in the form of automated testing stations and registered vehicle scrapping facilities.
On depositing the vehicle for scrapping at registered scrapping facilities, the vehicle owner gets the CD. It is being used for multiple benefits, such as registration fee waivers, road tax concessions, and discounts from automakers on the purchase of new vehicles.
The government has been pitching the vehicle scrappage policy, highlighting its impact on reducing vehicle pollution, improving safety, and boosting new vehicle sales. Recently, most OEMs have agreed to give discounts up to 3% to consumers who purchase new vehicles after scrapping their old vehicles.