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Suspend PM E-DRIVE truck-scrapping rule fora yr: Auto industry
Business Standard
|January 10, 2026
The automobile industry in India has asked the Ministry of Heavy Industries (MHI) to suspend for one year the rule governing financial incentives for buying an electric truck (e-truck) under the PM E-DRIVE scheme, Business Standard has learnt.
For buyers to get the incentives, the rule requires them to submit a certificate showing that a truck running on the old internal combustion engine (ICE) has been scrapped.
As very few commercial vehicles are being scrapped at present, the Society of Indian Automobile Manufacturers (Siam) has said that even when the scrapping mandate comes into force after one year, it should be implemented with relaxed weight-related requirements to improve “administrative simplicity” while maintaining “environmental integrity”.
The scheme requires buyers to scrap an old ICE truck that is of the same weight or heavier than the electric truck they want to buy.
After scrapping is done, a certificate of deposit (CD) is issued, and it must be submitted when purchasing the e-truck to claim incentives.
This story is from the January 10, 2026 edition of Business Standard.
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