Mining industry seeks Rs 15,000 per kWh subsidy for electric trucks

The domestic mining industry has sought a Rs 10,000 to Rs 15,000 per kWh subsidy on electric Heavy Earth Moving Machinery (HEMM) to encourage their use. According to a report by the Federation of Indian Mineral Industries (FIMI), the upfront costs of electric trucks is a major entry barrier to their adoption.

“Electric trucks and other HEMMs are currently priced at nearly three times (3x) that of their diesel counterparts. Such price disparity discourages potential buyers,” a FIMI report said.

The industry body report also recommended a 5% Goods and Services Tax rate on retrofit kits used to convert diesel trucks to electric.


“Retrofit kits currently do not have a dedicated classification. Instead, the individual components of these kits are taxed separately often at rates exceeding 18% which undermines the economic viability of retrofitting,” the report said.