Page 61 - FIPI - Policy & Economic Report May 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

reliable verification services for weighing and measuring instruments across the country. The expanded
scope of GATCs is expected to further strengthen India's verification infrastructure, improve service
delivery and reduce delays.

10.Ministry of Heavy Industries convened a high-level meeting on financing mechanisms for electric
buses and electric trucks

The Ministry of Heavy Industries (MHI), Government of India, held a high-level meeting under the
chairmanship of Shri H. D. Kumaraswamy, Union Minister for Heavy Industries & Steel, on 20th May 2026
in New Delhi with senior representatives of public and private sector banks including SBI, Punjab National
Bank, Canara Bank, Central Bank of India and HDFC, SIDBI, bus and truck operators, including associations
such as the All India Motor Transport Congress (AIMTC), Kodadaramu Lorry Association, Bus Operators
Confederation of India (BOCI), Karnataka Bus Operators Association (KBOA) and South India Motor
Transport Association, along with major private transport operators and travel companies, to deliberate
on the financing mechanisms required to accelerate the adoption of electric buses and electric trucks in
the private sector.

The objectives of the meeting were to understand the financing challenges for e-bus and e-truck adoption,
the current status of financing for e-buses and e-trucks, potential solutions to address the financing
challenges and the Government support required.

The meeting was a step in line with Prime Minister Shri Narendra Modi’s call to save fuel and adopt Electric
Vehicles amid global uncertainties and the evolving situation in West Asia, reflecting India’s strong
commitment towards energy security, reduced dependence on fossil fuels, lower oil import bills and a
sustainable future for all.

During the meeting, key financing challenges relating to the adoption of electric buses and electric trucks
in the private sector were deliberated upon, including proposed support mechanisms such as Credit
Guarantee and Interest Subvention. Credit Guarantee schemes aimed at de-risking lending by financial
institutions and Interest Subvention mechanisms intended to reduce borrowing costs for private sector
buyers, were discussed as potential measures to support accelerated adoption of electric commercial
vehicles.

Public transport, particularly buses, forms the backbone of mobility across India, while trucks play a critical
role in freight movement by carrying a substantial share of domestic goods. At the same time, the
commercial vehicle segment contributes significantly to road transport emissions, fuel consumption and
particulate matter pollution. In this context, the electrification of buses and trucks is essential for
achieving India’s decarbonisation targets and advancing the nation’s Net Zero by 2070 goal.

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