Key GoI body suggests wide-ranging incentives for electric, hydrogen trucks

The office of Government of India’s Principal Scientific Adviser (PSA) has issued an advisory  on “Bharat Zero Emission Trucking” or ZET, proposing a zero-toll system for all trucks with green number plates, among other incentives.

The Principal Scientific Advisor (PSA) provides scientific guidance to the nation’s leadership and coordinates between various scientific departments, and promotes research initiatives. The PSA helps identify emerging technologies, encourages international collaborations, and contributes to India’s technological advancement. 

The latest advisory has given nearly 30 recommendations, including having toll-free highways for such zero-emission trucks, and has earmarked a 12-14 month timeframe for the draft norms to be converted into government policy. 

The policy document focuses on zero-emission electric trucks and claims that electrifying road transport has two benefits: it reduces reliance on foreign oil imports and lowers overall logistics costs. Adopting zero-emission trucks (ZETs), such as battery-electric trucks (BETs) and fuel-cell-electric trucks (FCETs), could save 838 billion liters of diesel by 2050, saving over ₹108 lakh crores in oil costs, the document says.

The Bharat ZET Policy Advisory document categorizes interventions into five categories: incentives, regulations, infrastructure, business and finance, and stakeholder-centric initiatives.

The Ministry of Heavy Industries, designated as the nodal ministry to promote and facilitate EV adoption, has been tasked with paving the way for such green corridors under the ZET policy document.

“The office of the PSA of GOI has recommended that the Ministry of Heavy Industries, which is the nodal agency, conduct a holistic study of global ZET demand incentive examples to develop a comprehensive understanding of ZET vehicle costs compared to ICE truck costs, which could then become part of the proposed FAME3 subsidy scheme,” according to the policy document.

According to the policy document, ZET demand incentives can be structured in a variety of ways to meet market demands. For example, implementing incentives based on performance parameters such as battery capacity, range, and energy consumption can improve product quality and promote efficient market development. Incentives can also be routed through public sector undertakings (PSUs), which are specifically designed for government-controlled/owned fleets, based on identified qualifying criteria.

“This can help them use their capacity to aggregate assets such as trucks, land, and charging infrastructure.”

The ZET advisory also states that going forward, “a careful phasing out of incentives should be planned to not disrupt the demand-supply cycle.”

According to the ZET policy document, toll costs account for a significant portion of trucking companies’ operational expenses (OPEX), ranking third among major expenses incurred. “Incentivizing LSPs through toll exemptions for ZETs can encourage them to use more electric trucks,” the policy document states.

Over the next year, various stakeholders of the Government of India, including senior officials from the Ministry of Finance, the Ministry of Road Transport and Highways, original equipment manufacturers, logistics service providers (LSPs), and small fleet owners and truck drivers, will discuss how to implement the zero-toll proposal.

To carry out this proposal, one of the primary deliverables identified by the GOI experts is the modification of Rule 11 of the National Highways Fee (Determination of Rates and Collection) Rules, 2008, to include ZET trucks in the vehicles exempt from toll charges on highways under the “exempt from paying user fee” category.

PSA Prof. Ajay Kumar Sood commented on the advisory note, emphasizing the importance of Zero Emission Trucks (ZET) for both decarbonization and energy security, stating, “The introduction and widespread adoption of ZETs require technical expertise and systematic policy interventions to create an enabling techno-socio-economic ecosystem in India.”

Battery Standards

Some of the other measures as part of the 30-point plan from the office of PSA GOI include determining interoperable standards for large batteries that will be used in these zero-emission trucks.

“As the technology and ecosystem evolve, battery standardization can pave the way for efficient battery swapping in ZETs,” the advisory noted. 

According to the government officials who conducted the ZET study, standardization for interoperability entails establishing uniformity in connectors and communication protocols across EVs.

Another important point raised by this highly empowered stakeholder group is that battery electric trucks and hydrogen-powered trucks have a lower payload capacity due to the extra weight of their batteries or a hydrogen truck’s cylinder. As a result, the government proposes that such trucks be allowed to carry an additional 4 tonnes of weight if they use ZET trucks for their logistics operations compared to ICE-based trucks.

The advisory was formulated with inputs from eminent personalities from the government and private sector, including Dr. Parvinder Maini, Scientific Secretary, Office of PSA; Hanif Qureshi, Additional Secretary (Auto), Ministry of Heavy Industries; Sh. Sudhendu Sinha, Adviser (Infrastructure Connectivity & E-Mobility), NITI Aayog; Prof. Shankar Ram, IIT Madras (Member, Consultative Group on e-Mobility (CGeM)); Sh. M. Ravi, Chief of Operations, Centre of Excellence for Zero Emission Trucking (CoEZET), IIT Madras; Ms. Sharvari Patki, Program Head, Electric Mobility, World Resources Institute (WRI); and Ms. Chandana K., Program Associate – Sustainable Cities & Transport, WRI.

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