Blended Financing - NHEV | Electric Vehicles | Electric Charging Station

Blended Climate Financing Instrument | Press Release 1st-August-2025

Accelerating Financing for Zero-Emission Trucking in India

By Ease Of Doing Business for NHEV under Annuity Hybrid E-Mobility

blended climate financing instrument - AHEM

Press Release 1st-August-2025

Decarbonizing India’s trucking sector is vital to fulfilling the nation’s climate commitments, enhancing energy security, and improving public health. While zero-emission trucks (ZETs) offer significant environmental and economic benefits, their adoption is hampered by high initial capital expenditures and uncertainties around asset valuation and emerging technologies.

To overcome these barriers, the National Highways for Electric Vehicles (NHEV) initiative, under Ease of Doing Business (EoDB), has developed a pioneering financing framework to mobilize substantial private capital and fast-track ZET deployment. A key achievement is the mobilization of ₹500 crore through a Viability Gap Funding (VGF) blended finance instrument designed to reduce financial risk and enable scalable investment.

This mechanism provides fleet operators and manufacturers with a 12-month moratorium on EMI and interest payments, easing upfront financial pressure. Additionally, it optimizes asset utilization through structured leasing contracts and incorporates a built-in First Loss Guarantee (FLG) to enhance lender and investor confidence. This financing model supports the deployment of 720–810 electric trucks across India’s major freight corridors, contributing to a sustainable and resilient freight ecosystem.

Who can avail ZET Blended Climate Finance for AHEM ?

What is the eligibility criteria to avail ZET Blended Climate Finance for AHEM ?

National Rollout of Electric Truck on NHEV ZET routes

What are financing tenure and terms ?

Financing is available with a 12-month moratorium under a subvention scheme, during which no EMIs or interest payments are required.
EMI payments commence after the moratorium period, with terms finalized in coordination with the bank based on the applicant's financial profile.
All movable & e-movable assets including auxiliary digital infrastructure are strategically packaged and assetized to enable maximum monetization potential.

Stakeholder responses on India’s Zero Emission Truck (ZET) Financing and Deployment Initiative

Electric trucks have been major carbon emitters in surface transport. PM E-DRIVE has now included electric trucks under its incentive coverage. Such scale and speed of NHEV private capital deployment conforms that the policy trajectory headed in the right direction. The overwhelming response from various Zero Emission Trucking (ZET) stakeholders is encouraging. Recent Public-Private-Partnership (PPP) deployments—such as viability gap funding (VGF) $ 57 million USD credit in ‘NHEV’ and the $ 20 million USD equity investment in ‘Transvolt Mobility’ are expected to further accelerate electric Heavy Duty Vehicles (HDV) adoption and transition of surface transport to clean and cutting edge zero-emission transportation

- Sudhendu J Sinha, Advisor - NITI Aayog, Govt Of India.

Response coming from the Government & Policy Think Tanks Advisors

Electric trucks have been major carbon emitters in surface transport. PM E-DRIVE has now included electric trucks under its incentive coverage. Such scale and speed of NHEV private capital deployment conforms that the policy trajectory headed in the right direction. The overwhelming response from various Zero Emission Trucking (ZET) stakeholders is encouraging. Recent Public-Private-Partnership (PPP) deployments—such as viability gap funding (VGF) $ 57 million USD credit in ‘NHEV’ and the $ 20 million USD equity investment in ‘Transvolt Mobility’ are expected to further accelerate electric Heavy Duty Vehicles (HDV) adoption and transition of surface transport to clean and cutting edge zero-emission transportation.

Sudhendu J Sinha
Advisor – NITI Aayog, Govt Of India.

Response coming from the Electric Truck Fleet

Firstly The International Finance Corporation (IFC), a member of the World Bank Group, announced equity investment of $20 million in Transvolt Mobility within a week after announcement of PM E-DRIVE on 11th July. This strategic equity investment of IFC comes in the wake of the PM E-Drive subsidy scheme, followed by second such big announcement of $ 57 million USD (₹500 crore INR) blended climate finance opened by Ease of Doing Business (EoDB) on 1st August 2025 to de-risk early-stage clean mobility ventures with Viability Gap Funding (VGF). Commenting on the development, Mr. Siddesh Rai, Vice President, Transvolt Mobility, also a Working Group Member (WGM) of NHEV Climate Finance policy making said

Government incentive and the recently announced policy frameworks are encouraging steps for EV adoption; however, faster and sustainable adoption of EV as part of the mainstream business requires strong participation from private sector; we are fully geared up to take up the challenge and partner with Government of India PPP pilot initiative NHEV and private sector stakeholders to make the EV a success especially in the electric truck segment.

Mr. Siddesh Rai
President, Transvolt Mobility | WGM of NHEV Climate Finance policy making

Response coming from Leading Think Tanks and Policy Analysts and Consultancies

Rahul Bagdia, CMD, pManifold Business Solutions a think tank and International Electric Mobility consultancy that actively organised various stakeholders sessions and consultations in Chennai, Tamil Nadu just days before starting NHEV on ground Technical Trial in Sep 2024 on Electric Trucks to collect realtime real world data to validate this Blended Climate Financing commented on this announcement on 1st August 2025.

India's e-Truck transition is a compelling proof of the transformation that becomes possible when bold public ambition meets agile private innovation, supported by robust financing structures. The mobilization of ₹ 500 crore public investment in the form of subsidies, matched by an additional ₹ 500 crore private capital through a blended finance instrument demonstrates the nation's commitment to moving policy from paper to practice.

He added that the findings from the India's Priority Corridors for Zero Emission Trucking report, co-authored by pManifold, have already highlighted the importance of deploying e- trucks along high-impact freight corridors, backing capital allocation with real-world operational and financial data. Highlighting the evidence based policy making he says “ NHEV's data-driven approach is a template for realistic, investable approaches to emissions reduction, making it possible for investors and fleet operators to have the confidence to back net-zero delivery solutions. This initiative is as much about ambitions as it is about making data-driven choices, leveraging digital tools, and forming alliances that can enable India to seize its $2 trillion climate opportunity and become a zero-emission global leader in commercial transport. The action on important routes such as Chennai-Trichy serves to reinforce the fact that India's climate ambitions are grounded in transparent, successful, and repeatable approaches, something that provides the nation with both motivation and a practical guide to cleaner freight electrification.

Rahul Bagdia
CMD, pManifold Business Solutions

Official Statement from Project Director of NHEV

This Climate Financing Instrument of ₹ 500 Crores will significantly reduce the price of electric trucks in India, as it is based on a specific technical trial conducted on 55-ton electric trucks, which is expected to come down to a price of ₹ 99 lacs in a few weeks from now. And post PM E-DRIVE incentive, it will further come down to 90 lakhs from the current ₹ 1.25 crore price tag.

Government incentives provide critical momentum, but without substantial private investment stimulated by clear standards and regulations with real market signals, and tangible commercial trials, they risk being only a temporary boost rather than a foundation for transformation. We drove NHEV trials simultaneously to make private capital available to avail incentives, but rollout within a short span of time reflects strong investor confidence in PM E-DRIVE & early market tractions towards bringing more banks & funding agencies

Abhijeet Sinha

Project Director – National Highways for Electric Vehicles

Response coming from the Charge Point Operators Society (CPOS) of India

Relux Electric facilitated the mid-point charging points for the 3rd technical trial run of NHEV focused on Electric Trucks between Chennai and Trichy in TamilNadu. Member Charge Point Operators Society of India (CPOS of India) Mr. Karthikeyan applauds NHEV announcement and says

It's a remarkable step towards deployment of NetZero Emission trucks, happy to be a part of its technical trial last year in Sep 2024 . On behalf of Charge Point Operators of India we extend sincere gratitude to the NHEV Project Director Mr. Abhijeet Sinha sir for the ease of doing business that Truck buyers will get now and EV footfall that CPOS will receive from these heavy duty vehicles (HDV) deployments. NHEV is has once again came up as frontrunner in the scale and speed critical for India’s NetZero emission.

Dr. Karthikeyan Santharam
Board Member – CPOs of India

How to Avail or request Financing Support ?

You can express your request avail financing support by filling out the contact form. Alternatively, you may contact us directly via the phone number or email address given below.

Ease of Doing Business

National Highways for Electric Vehicles

Published by:

EoDB Services OPC in association with
National Highways for Electric Vehicles (NHEV) Blended Climate Financing Working Group (WGM) FY 2024-25

ESCROW Operator & Empaneled Private Bank of CF Instrument:

NHEV Greenways Pvt. Limited (Operator) & HDFC Bank Limited (ESCROW Bank) Kasturba Gandhi Marg, HDFC Branch, New Delhi

Contributors:

NHEV Greenways Private Limited, Charge Point Operators Society of India (CPOS of India), Blended Climate Financing Team, Annuity Hybrid E-Mobility Team, pManifold Team, Circular Economy Team of EoDB, ‘Viksit Bharat National Masterplan team of $2 trillion USD Climate Finance by 2030’ instruments development.

Type of Report:

Financing Instrument

Acknowledgement(s)

This report reflects the collective expertise and vision of public and private stakeholders working on India’s green mobility transition. We gratefully acknowledge the support of NHEV Knowledge Group Chair and Co Chair from NITI Aayog, Office of the Principal Scientific Advisor to Government of India, Government of Tamil Nadu, participating OEMs, technical consultants, banks and financial partners, NHEV Greenways and technical trial participants including all individual and institutional contributors. Special thanks to the tech-piloting agency Ease of Doing Business and its Program Team for testing the instrument on ground and organising conferences & consultations, leading research, coordination, and documentation, and to the Annuity Hybrid E-mobility (AHEM) Master instrument team for their unwavering commitment to build it in Public Private Partnership (PPP) mode.

Copyrights:

Ease of Doing Business, August 2025

Under Creative Common CC licence

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