The Centre is considering a separate policy framework to accelerate the adoption of electric buses and trucks, with a focus on bringing private operators into the electric mobility transition, government sources said.
The proposed scheme could expand incentives beyond government-owned and state transport fleets to private bus operators and commercial truck owners. The government is also discussing financing support with banks to make loans for electric commercial vehicles more accessible.
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The move comes as the Centre looks to address one of the biggest barriers to electric commercial vehicle adoption that is the high upfront costs and limited access to affordable financing.
The government is also working on a private e-bus de-risking framework. The framework could include measures such as interest subvention and viability-gap funding.
The government reportedly holding discussions with stakeholders, including industry participants and financial institutions, before finalising the framework.
Existing EV schemes focus heavily on public transport
The Centre already has multiple programmes supporting electric buses. Under PM E-DRIVE, Rs 4,391 crore has been allocated for 14,028 electric buses, with deployment routed through state or city transport undertakings and public transport agencies.
The PM e-Bus Sewa-Payment Security Mechanism also has an outlay of Rs 3,435.33 crore to support the deployment of more than 38,000 electric buses and reduce payment risks for operators working with public transport authorities.
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PM E-DRIVE also covers electric trucks, with a target of 5,643 e-trucks and Rs 500 crore in support. However, government data showed that e-truck registrations under the scheme were still at zero as of July 2026.
The proposed broader framework could therefore mark a shift from supporting public fleets to de-risking electric vehicle adoption across India's private commercial transport sector.
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