Government Schemes Every Truck Owner and Transporter Should Know

By Amit Jangra | Published Date : September 19, 2025

The government offers schemes like FAME, Mudra Loans and vehicle scrappage to support truck owners, reduce costs and promote cleaner, safer transport in India.

Truck owners and small transporters are the backbone of India’s logistics. They carry goods, serve towns and keep many livelihoods going. Yet, many struggle with high costs, tough rules and trouble getting loans or skills. The government has several schemes to help — with subsidies, loans, tax breaks, training and more. Here are some you should know.

Table of Contents

1. Pradhan Mantri Motor Vehicle Scrappage Policy

2. FAME Scheme (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles)

3. Pradhan Mantri Mudra Yojana (PMMY)

4. GST Input Tax Credit (ITC)

5. Driver Skill Development & Training Programmes

6. Why These Schemes Matter

Read More: EKA Mobility Launches Biggest EV Lineup, Secures 3,300+ Orders

1. Pradhan Mantri Motor Vehicle Scrappage Policy

Also called V‑VMP, this lets you scrap old trucks or old mini trucks in a safe, official way. There are Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATS) to help.

How it works:

• Your vehicle is tested at ATS.
• If it fails, you get a Certificate of Deposit.
• With that certificate, you can get discounts when buying a new vehicle, lower road tax (up to 15% for transport vehicles), sometimes less or no registration fees.

It’s voluntary, but useful. The policy ensures eco‑friendly disposal and follows guidelines from the Ministry of Road Transport & Highways. Good for those who have old trucks and want to shift to cleaner ones.

2. FAME Scheme (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles)

If you want to move away from a diesel or petrol old truck or mini truck, FAME helps. It gives incentives to people who buy electric or hybrid vehicles. It also supports building charging stations and local manufacturing of EV parts.

• FAME‑I started in 2015. It opened the door.
• FAME‑II in 2019 gave more support: funds for e‑2Ws, e‑3Ws, e‑4Ws, electric buses and public charging points.

The idea is to reduce pollution, lower fuel costs and push India toward greener transport.

3. Pradhan Mantri Mudra Yojana (PMMY)

Need money to buy or repair your mini truck or invest in your transport business? PMMY is a loan scheme. Loans are collateral‑free.

• Shishu: up to ₹50,000
• Kishor: ₹50,001 to ₹5,00,000
• Tarun: ₹5,00,001 to ₹10,00,000

These lend through banks, NBFCs, microfinance, etc. If you run a small transport business, this helps meet expenses or upgrade old vehicles.

4. GST Input Tax Credit (ITC)

When you buy goods, services, or repair parts used for business, you pay GST. ITC lets you claim back that tax against what you owe. If you run goods‑carrying vehicles — trucks or old mini trucks — this can save money.

Key points: keep good bills/invoices. Be honest about what parts or services are used for work. Sometimes special rates apply (for Goods Transport Agencies, etc.), so check what works better for you.

5. Driver Skill Development & Training Programmes

Good drivers are crucial. India’s MoRTH runs training through institutes like IDTR, Regional Driving Training Centres (RDTC) and local Driving Training Centres (DTC). These help both new drivers and those with experience.

You learn safe driving, modern traffic rules, better handling of vehicles. It can reduce accidents and open more chances for work or better pay.

Why These Schemes Matter

These programs are more than just “nice to have.” For someone with an old truck or old mini truck, they offer ways to cut costs, follow the rules, improve safety and even switch to cleaner options. With a little help via loans, tax relief, better training, you can run a better business, make more stable income and help the environment.

Also Read: Montra Rhino 5538EV Covers 1.2 Crore km in Just Two Years

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Frequently Asked Questions on Trucks

1. What is the Vehicle Scrappage Policy and how can truck owners benefit from it?

Ans: The scrappage policy rewards owners for removing old, polluting trucks. You get tax discounts, lower registration charges and special offers on new vehicles.

2. Can I get a loan to buy or repair my truck through a government scheme?

Ans: Yes, under the Pradhan Mantri Mudra Yojana, truck owners can get collateral-free loans up to ₹10 lakh to buy, repair, or expand their business.

3. Is there any benefit for switching to electric trucks?

Ans: Yes, under the FAME scheme, you get subsidies on electric vehicles. This helps lower running costs and supports cleaner, eco-friendly transport.

4. How can I reduce my GST bills as a truck owner?

Ans: By using Input Tax Credit (ITC), you can claim back GST paid on truck repairs, parts, or fuel, helping you reduce your overall tax burden.

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