MHI Reviews Financing Plan for Electric Buses and Trucks

The Ministry of Heavy Industries (MHI) held a high-level meeting in New Delhi on May 20 to discuss financing mechanisms for the adoption of electric buses and electric trucks in the private sector. The meeting was chaired by Union Minister for Heavy Industries and Steel H. D. Kumaraswamy.

The meeting brought together representatives from public and private sector banks, including SBI, Punjab National Bank, Canara Bank, Central Bank of India, HDFC, and SIDBI, along with bus and truck operators, transport associations, and private travel companies.

Discussions focused on the key financing challenges in the adoption of electric commercial vehicles and possible support measures such as credit guarantee schemes and interest subvention mechanisms. The ministry stated that these measures aim to reduce lending risks for financial institutions and lower borrowing costs for private operators.

It also highlighted that buses play a crucial role in public transport, while trucks account for a significant share of freight movement in the country. The commercial vehicle segment is also a major contributor to emissions and pollution, making its electrification essential for India’s net-zero and decarbonisation goals.

The ministry further emphasized that the initiative aims to bring together government bodies, financial institutions, and industry stakeholders to develop practical financing solutions that can remove barriers to electric commercial vehicle adoption.