Union Minister for Heavy Industries and Steel H. D. Kumaraswamy chaired a high-level stakeholder consultation in New Delhi to discuss strategies aimed at accelerating the adoption of electric buses and electric trucks across India, amid broader government efforts related to energy security, emissions reduction, and the electrification of commercial transport.

The meeting focused on establishing a framework between the government and private-sector stakeholders to support the deployment of zero-emission heavy commercial vehicles across the country and expand the use of electric mobility in the commercial transport sector.

Participants included representatives from multiple segments of the electric mobility sector, including fleet operators, transport aggregators, leasing companies, and financial institutions. Senior government officials, including Heavy Industries Secretary Kamran Rizvi and Additional Secretary Hanif Qureshi, also attended the consultation to discuss the sector's policy direction and obtain feedback from industry participants.

Discussions focused on the operational realities and challenges facing the commercial EV segment, particularly electric buses and electric trucks. Industry representatives highlighted issues related to access to capital for vehicle financing, deployment of public and corridor-based charging infrastructure, battery charging availability for long-haul operations, and the operational requirements needed to sustain electric fleets on intercity passenger routes and national freight corridors.

Addressing stakeholders, Kumaraswamy stated that electric buses are expected to play a larger role in domestic passenger transportation, while electric trucks are expected to increase their presence in India's logistics and freight transport sectors. He said government policy must remain aligned with the operational experiences of transport operators to support the transition to electric mobility across the industry.

The stakeholder consultation comes amid ongoing discussions within the government regarding a proposed incentive package valued at more than US$ 1 billion to support private-sector adoption of electric buses and electric trucks, according to a news agency report. The proposed scheme, which is reportedly being considered for implementation over a 10-year period, is aimed at India's predominantly privately owned commercial vehicle fleet. According to the report, a significant share of the proposed allocation is expected to support intercity electric bus operators and EV adoption in commercial passenger transport.

Sources cited by the publication indicated that meetings involving the Prime Minister's Office (PMO) and industry stakeholders are expected to take place this month to further refine the proposal and review EV deployment plans.

Among the incentives under consideration are interest subvention benefits of up to Rs. 1.5 million (US$ 15,605) per vehicle over its operational lifetime, with the level of support expected to reduce gradually over time. The government is also evaluating a partial credit guarantee mechanism intended to improve financing access for smaller fleet operators, a segment that has historically faced challenges due to high upfront EV acquisition costs and limited financing availability.

The proposed measures are being evaluated at a time when India imports nearly 90% of its crude oil requirements.

According to the news agency, the government views commercial vehicle electrification as a measure that could reduce exposure to geopolitical supply disruptions, including those linked to the ongoing West Asia crisis, while also reducing dependence on fossil fuels in the transport sector. The transition towards electric commercial transport is also expected to contribute to lower urban air pollution levels. In cities such as New Delhi, vehicular emissions account for a significant proportion of annual fine particulate matter pollution.

Despite increasing EV adoption, most newly registered buses in India continue to use diesel powertrains, while countries including China and the United States have expanded commercial fleet electrification at a faster pace, according to the report.

The proposed incentive framework remains under discussion, with the final budget allocation, eligible vehicle categories, and subsidy structures yet to be finalised. As a result, the plan remains a policy proposal under development rather than a formally approved government scheme.