Mining Sector Pushes for ₹15,000/kWh Subsidy on Electric Trucks to Drive Green Transition
India’s mining industry is actively seeking government support to fast-track the electrification of its heavy-duty transport fleet. Industry representatives have proposed a substantial subsidy of ₹15,000 per kilowatt-hour (kWh) for electric trucks, aligning with national goals to cut carbon emissions and achieve sustainable industrial growth.
This demand comes amid India’s broader push for green mobility, energy transition, and decarbonization across core sectors like steel, coal, and mining.
Why the Demand for Subsidy?
Mining operations depend heavily on diesel-powered heavy-duty trucks for transporting ore and other materials across rugged terrains. These trucks are not only expensive to operate but also contribute significantly to greenhouse gas (GHG) emissions.
-
Fuel costs account for 40-60% of operational expenses.
-
Electric trucks, while cleaner, are 30-40% more expensive upfront than diesel variants.
-
A major component of the cost lies in the battery pack, hence the industry’s focus on a ₹15,000/kWh subsidy, which would directly offset battery costs.
Key Points of the Proposal
-
Eligibility: Electric heavy-duty trucks used in core mining operations (iron ore, coal, bauxite, limestone, etc.).
-
Objective: Bridge the cost gap between diesel and electric trucks to make EVs financially viable.
-
Incentive Benchmark: Similar to or inspired by past schemes such as FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), but tailored to the mining sector.
-
Implementation Partner: Proposal under consideration by Ministry of Mines, in consultation with the Ministry of Heavy Industries and Ministry of Power.
Environmental & Economic Benefits
-
Emission Reduction: EV adoption in mining could reduce millions of tonnes of CO₂ annually.
-
Cost Efficiency: Over time, EVs offer lower operational and maintenance costs compared to diesel.
-
Energy Security: Reduces dependency on imported fossil fuels.
-
Make in India Boost: Could spur local manufacturing of EV trucks and battery packs.
Challenges to Overcome
While the proposed subsidy could accelerate EV adoption in mining, several hurdles remain:
-
Lack of charging infrastructure in remote mining regions.
-
Battery performance in extreme temperatures and rugged usage conditions.
-
High initial investment even after subsidy.
-
Limited domestic production of electric mining trucks.
Industry Outlook & Future Steps
Companies like Coal India Ltd, Vedanta, NMDC, and Tata Steel have shown interest in decarbonizing logistics. Some have already begun pilot projects using electric or hydrogen-fuelled trucks. However, large-scale adoption will require strong policy support, subsidies, and infrastructure development.
The proposed subsidy, if approved, could be a game-changer for India’s journey towards green mining and contribute significantly to its net-zero emission targets by 2070.