NITI Aayog Launches PACT and ZET Marketplace at 5th e-FAST India Summit: Decarbonising India's Road Freight Sector

Why in News

On 7 September 2026, NITI Aayog launched two landmark platforms — PACT (Platform for Aggregating Clean Transport) and the ZET (Zero Emission Truck) Marketplace — at the 5th e-FAST India Summit in New Delhi. The launch was led by Rajiv Gauba, Member, NITI Aayog. The platforms are designed to accelerate the deployment of battery-electric heavy trucks in India's road freight sector, directly addressing a major source of the country's transport-sector carbon emissions.

Background

e-FAST (Electric Freight Accelerator for Sustainable Transport) — India is India's first national collaborative platform dedicated to accelerating freight electrification, with a focus on medium- and heavy-duty vehicles (MHDVs). It is an initiative of NITI Aayog and has held annual summits since its first edition in 2022. Over four years, e-FAST has evolved from a dialogue forum into a coordinated action mechanism, reflecting India's shift from setting climate commitments to executing them.

The Road Freight Problem

India's road freight sector presents a paradox of scale:

• Heavy commercial vehicles (trucks) constitute only 3–4% of India's total vehicle fleet.
• Yet they contribute over 33% of all transport-sector carbon emissions.
• Approximately 70% of India's total freight moves by road.
• Only ~800 heavy-duty electric trucks were sold across all of 2025, underscoring how nascent adoption is.

India has committed to Net Zero emissions by 2070 and to reducing emissions intensity of GDP by 45% by 2030 (updated Nationally Determined Contribution, or NDC). Decarbonising freight is essential to meeting both targets.

Current Developments

PACT — Platform for Aggregating Clean Transport

PACT is a digital demand-aggregation marketplace. Its core problem: India's logistics market is extremely fragmented — no single shipper or logistics service provider (LSP) controls enough freight volume to justify large-scale procurement of expensive electric trucks on its own. PACT solves this by:

• Aggregating freight demand from multiple shippers, LSPs, and supply chain players.
• Translating aggregated demand into deployment opportunities along identified freight corridors.
• Facilitating innovative financing structures — pooled demand creates bankable propositions for lenders.
• Enabling corridor-based project development, where charging infrastructure and vehicle orders can be co-planned.

ZET Marketplace — Zero Emission Truck Marketplace

The ZET Marketplace is the supply-side complement to PACT's demand aggregation. It is an interactive business platform connecting:

• Electric truck manufacturers
• Logistics service providers (LSPs)
• Charge-point operators (charging infrastructure companies)
• Financiers and banks
• Technology companies (telematics, battery management, fleet management)

Participants can showcase EV products, identify commercial opportunities, and build partnerships for zero-emission freight corridor projects.

Key Facts

Constitutional Provisions

Article 48A (Directive Principle of State Policy) directs the State to protect and improve the environment. Article 51A(g) (Fundamental Duty) obliges citizens to protect and improve the natural environment. Article 246 + List III (Concurrent List), Entry 17A — Forests; Entry 17B — Protection of wild animals and birds — underpin environmental legislation. Transport regulation falls under List I Entry 29 (Highways), List III Entry 35 (Mechanically propelled vehicles) and the Motor Vehicles Act framework.

Legal Framework

• Energy Conservation Act 2001 (amended 2022) — The 2022 amendment introduced carbon credit trading, mandatory use of non-fossil energy by large industries, and a Carbon Credit Certificate framework — creating the policy infrastructure within which zero-emission freight incentives operate.
• Motor Vehicles Act 1988 — Governs registration and roadworthiness standards for commercial vehicles; being progressively updated for EVs.
• FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Scheme — Provides demand incentives for EVs including commercial vehicles. FAME-II (2019–2024) specifically incentivised electric buses and three-wheelers; discussions on FAME-III include heavy trucks.
• National Clean Air Programme (NCAP) — Targets 40% reduction in particulate matter by 2026; freight electrification contributes by eliminating diesel particulates.

Institutional Framework

• NITI Aayog — Apex planning and policy institution; hosts e-FAST and launched PACT/ZET.
• Ministry of Road Transport and Highways (MoRTH) — Policy on commercial vehicle standards, GST on EVs, BS-VI norms.
• Ministry of Power — Charging infrastructure policy; guidelines on EV charging standards.
• Bureau of Energy Efficiency (BEE) — Energy efficiency standards for vehicles; corporate average fuel consumption (CAFC) norms.
• World Resources Institute (WRI) India / Rocky Mountain Institute (RMI) — International knowledge partners for e-FAST India.

Economic Dimensions

India's logistics sector is estimated at ₹22 lakh crore (approximately $265 billion) annually and accounts for 13–14% of GDP — compared to 8% in developed economies. The inefficiency premium is driven by fragmentation and diesel dependence. Transitioning to electric freight can:

• Reduce fuel costs by 50–60% over the vehicle lifetime (electricity vs diesel).
• Cut logistics cost-to-GDP ratio toward the National Logistics Policy target of sub-8%.
• Reduce India's crude oil import bill — India imports ~85% of its crude oil, and road transport is a major consumer.
• Create new domestic industries in electric powertrain, battery manufacturing (aligned with PLI Scheme for Advanced Chemistry Cell batteries), and charging infrastructure.

Banking/IBPS angle: EV fleet financing is an emerging segment for banks and NBFCs. The RBI's Priority Sector Lending (PSL) guidelines include EVs; clean energy lending is being incentivised through green bond frameworks (SEBI's green bonds regulations).

Environmental Dimensions

Heavy road freight is India's fastest-growing emissions source in the transport sector. India's updated NDC commits to reducing emissions intensity of GDP by 45% by 2030 (versus 2005 baseline) and achieving 50% cumulative electric power capacity from non-fossil fuel sources by 2030. Electrifying freight corridors — especially the Delhi-Mumbai, Delhi-Kolkata, and Chennai-Bengaluru economic corridors — can deliver outsized emissions reductions per rupee invested. Freight electrification also aligns with India's obligations under the Paris Agreement (2015) and the Kigali Amendment to the Montreal Protocol (reduction of HFCs used in diesel truck air conditioning).

Social Dimensions

India's ~13 million truck drivers are exposed to diesel particulate matter emissions — a Class I carcinogen — throughout their working lives. Fleet electrification reduces cabin and ambient exposure. Additionally, millions of people living near major freight highways and logistics hubs suffer disproportionate air pollution burden; electric freight directly addresses environmental justice for these communities.

Challenges

• High upfront cost: Electric heavy trucks cost 2–3× more than diesel equivalents; total cost of ownership (TCO) parity is 5–7 years away without subsidies.
• Charging infrastructure gap: Long-haul EV trucking requires high-power (>350 kW) charging stations at regular intervals on highways — virtually absent today.
• Battery weight and payload: Battery packs reduce payload capacity; at scale this increases per-tonne-kilometre transport costs.
• Grid reliability: Charging large truck fleets simultaneously risks local grid stability, especially in rural highway corridors with weak distribution infrastructure.
• Market fragmentation: India's truck owner-operator market has millions of small fleet owners (1–5 trucks); PACT's aggregation model must reach this tail.

Government Initiatives

• National Logistics Policy 2022 — Targets logistics cost reduction from 13% to <8% of GDP; green freight is a pillar.
• FAME Scheme — Demand incentives for EVs; FAME-III expected to include heavy trucks.
• PLI for Advanced Chemistry Cells (ACC) — ₹18,100 crore for domestic battery manufacturing; reduces EV battery costs.
• PM Gati Shakti National Master Plan — Integrates multi-modal logistics infrastructure; PACT corridors can be mapped onto Gati Shakti freight nodes.
• Energy Conservation (Amendment) Act 2022 — Carbon credit framework to incentivise zero-emission freight.

Way Forward

As recommended by the NITI Aayog Three-Year Action Agenda and aligned with the Economic Survey 2025–26's chapter on green transition, India should:

• Fast-track a FAME-III scheme specifically targeting electric heavy trucks with per-vehicle capital subsidy and GST reduction.
• Mandate EV charging infrastructure at every National Highway fuel station under MoRTH's highway development programme.
• Create a Green Freight Bond — a sovereign instrument to mobilise long-term capital for EV corridor infrastructure.
• Develop a Carbon Credit framework for fleet operators switching from diesel to electric under the Energy Conservation Act 2022 amendment.
• Link PACT corridor data with the PM Gati Shakti national logistics platform for real-time freight intelligence.

Possible Mains Questions

1. "Decarbonising India's road freight sector is both a climate imperative and a logistics competitiveness opportunity. Critically examine the challenges and the policy instruments available." (GS-III, 250 words)
2. "NITI Aayog's PACT platform addresses the market fragmentation barrier in India's freight electrification. Analyse how demand aggregation can unlock private investment in green infrastructure." (GS-III, 150 words)

Essay Dimensions

1. Green logistics as a national competitiveness strategy for India in the 21st century.
2. The invisible polluter: How India's freight sector shapes its climate future.
3. Market design for climate action: Aggregation, corridors, and the electrification of India's highways.
4. From 13% to 8%: Can India cut logistics costs without cutting environmental corners?
5. Net Zero 2070: The role of transport sector transformation in India's climate commitments.

Interview Questions

1. Why do heavy trucks, though a small fraction of the vehicle fleet, account for such a large share of transport emissions?
2. What is the difference between PACT and the ZET Marketplace? How do they complement each other?
3. How does India's Energy Conservation (Amendment) Act 2022 support the freight electrification agenda?
4. What is the National Logistics Policy 2022 target for logistics cost-to-GDP, and how does green freight contribute?
5. How do PLI schemes for Advanced Chemistry Cells (ACC batteries) reduce the cost barrier for electric truck adoption?

FAQ

What is PACT launched by NITI Aayog?

PACT (Platform for Aggregating Clean Transport) is a digital demand-aggregation marketplace that pools freight demand from multiple shippers and logistics providers to create commercially viable electric truck deployment opportunities along freight corridors.

What is the ZET Marketplace?

The Zero Emission Truck (ZET) Marketplace connects EV truck manufacturers, logistics companies, charging infrastructure operators, financiers, and technology firms to build partnerships for zero-emission freight projects.

Why does India need to electrify heavy trucks specifically?

Though only 3–4% of India's vehicle fleet, heavy trucks produce over 33% of transport-sector carbon emissions. With 70% of India's freight moving by road, electrifying heavy trucks delivers disproportionately large emission reductions relative to effort.

Further Reading

• NITI Aayog / e-FAST India: efastindia.org
• National Logistics Policy 2022: logistics.gov.in
• FAME Scheme, DPIIT: fame2.heavyindustries.gov.in
• Energy Conservation Act 2022 amendment: beeindia.gov.in