Principal scientific advisor bats for inclusion of e-trucks in FAME-III

Outlines comprehensive plan to transition India's trucking sector to zero-emission vehicles

A report by the office of the Principal Scientific Adviser (PSA) to the Government of India has batted for the inclusion of electric trucks in the third tranche of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-III) scheme.

Titled “Bharat Zero Emission Trucking (ZET) Policy Advisory”, the report outlines a comprehensive plan to transition India’s trucking sector to zero-emission vehicles, with a target of achieving 100 per cent zero-emission truck sales by 2050. The report notes that the Ministry of Heavy Industries (MHI) is leading several initiatives aimed at e-trucks, including the potential incentives under the forthcoming FAME-III programme.

“This ministry is spearheading multiple initiatives specifically targeted towards e-trucks, including potential incentives under the upcoming FAME-III programme,” the report says.

Business Standard reported in January on the potential inclusion of e-trucks in the scheme, with a proposed budget of Rs 100 crore. These incentives aim to support heavy commercial vehicles (HCVs) in industries such as mining, steel and cement, facilitating their transition from diesel-powered HCVs that emit carbon dioxide.

The Bharat ZET Policy Advisory document serves as a comprehensive guide to accelerate the adoption of ZETs in India, detailing 30 strategic interventions across five key areas.

The plan includes financial incentives to make ZETs more appealing to buyers, a revamped regulatory framework to provide market clarity, and the development of zero-emission refuelling infrastructure through tax credits and innovative service models.

It also outlines financing solutions like reduced interest rates and diverse loan options to make ZETs more affordable, while promoting stakeholder-centric initiatives to enhance awareness and skills across the freight ecosystem.

Collectively, these measures are designed to create a supportive environment for widespread adoption of ZETs.

At present, only a few manufacturers are developing electric trucks. Murugappa Group has announced plans to launch four such HCVs. These trucks will feature a battery capacity exceeding 250 kWh and a range of 185 km with one side loaded and one side empty.

HCVs transporting commercial goods have wide applications in sectors such as mining, ports, infrastructure development, construction, and inter-warehouse freight transport.

However, due to their limited range and current lack of infrastructure, their use is mainly confined to industries operating within restricted spaces like mines.

The Centre provides incentives of around Rs 50 lakh for each electric bus under FAME-II, in addition to state government incentives. Additionally, for the e-bus segment, the government has announced the Rs 57,000 crore PM e-Bus Sewa initiative and introduced a payment security fund of approximately Rs 4,126 crore.

Data from the Vahan portal of the Ministry of Road Transport and Highways (MoRTH) shows in 2023, 12,222 HCVs and 1,000 trailers were registered.

However, with an infrastructure boom and a surge in demand for road transportation, the HCVs market is set to grow significantly. Given the limited application of electric trucks, the government is considering incentivising this category as HCVs typically average 2-5 km per litre.

A type of electric truck that will be supported weighs over 55 tonnes. Another reason the government wants to give incentives is their high cost. Industry estimates indicate a diesel HCV costs a little more than Rs 30 lakh, while it is over Rs 70 lakh for an electric truck.

Giving a boost to green mobility, companies have started announcing plans to introduce electric trucks.

UltraTech Cement, India’s largest cement and ready-mix concrete (RMC) company, introduced electric trucks in January for transporting clinker. The company has said it will deploy 500 e-trucks.

Industries worldwide are shifting towards electric HCVs to reduce pollution. Swedish mining group Boliden is among the first to use battery-electric trucks for heavy underground transport. Volvo trucks are being used in Boliden’s Kankberg mine in northern Sweden.

An overview

— Zero-emission truck: A ZET is a commercial vehicle that produces no tailpipe emissions, typically powered by electricity or hydrogen.

— Uses: ZETs are used in sectors such as mining, ports, construction, and inter-warehouse transport.

— Current stature: E-trucks are still in the early stages of development and adoption, with limited range and infrastructure constraints.

— Challenges: High cost compared to diesel trucks (Rs 70 lakh vs Rs 30 lakh) and limited availability of charging/refuelling infrastructure.

— First movers: Companies like Murugappa Group and UltraTech Cement are early adopters, with the former planning to launch e-trucks and the latter introducing them for clinker transport.