India is considering a support programme worth more than $1 billion to encourage private-sector adoption of electric buses and trucks, Business Standard reported, as the government looks to reduce dependence on imported fossil fuels and accelerate commercial fleet electrification.
The proposed scheme, which is still under discussion, would run for 10 years and primarily target privately operated commercial vehicles, with inter-city electric bus operators expected to receive the largest share of incentives.
According to Business Standard, meetings involving the Prime Minister’s Office and industry stakeholders are expected this month to refine the structure of the programme. Final decisions on budget allocation, eligible vehicle categories and subsidy mechanisms have not yet been finalized and could change during consultations.
India imports nearly 90% of its crude oil requirements, the report said, prompting policymakers to examine additional measures to lower reliance on fossil fuels following recent supply disruptions linked to the West Asia crisis.
The incentives under consideration reportedly include interest subvention benefits of up to 1.5 million rupees ($17,500) per vehicle over its operating life. The proposed subsidies would gradually decline over time.
Authorities are also evaluating a partial credit guarantee framework intended to support financing for private companies purchasing electric commercial vehicles, according to Business Standard. Discussions have included lenders, guarantee providers, automakers and fleet operators.
Initial proposals have focused on support for around 10,000 electric buses, though discussions could eventually expand the programme to cover between 40,000 and 50,000 vehicles.
Industry participants have also requested additional policy support measures, including charging parks, toll and tax exemptions, and discounted electricity rates for commercial fleet operators, the report added.