India plans interest subsidies and credit guarantees to finance electric buses and trucks
By Eve
The Ministry of Heavy Industries is developing a financing support framework for electric buses and trucks that may include interest subsidies and partial credit guarantee mechanisms, announced Hanif Qureshi at an industry event in Bengaluru. The measures target small fleet operators who own fewer than five trucks or around 10 buses, a segment lenders view as high risk. Under the PM e-Drive scheme, the government has allocated ₹2,000 crore for EV charging infrastructure out of a total ₹10,900 crore budget, with 24 high-density freight corridors and 50 bus corridors identified for charger deployment.
Why it matters: Easier financing for small commercial fleets could accelerate demand for depot and corridor charging infrastructure, particularly along the 24 freight and 50 bus routes earmarked for deployment. The ₹2,000 crore charging allocation under PM e-Drive signals procurement opportunities for CPOs and equipment suppliers targeting heavy-duty segments.