Telangana’s new EV policy: what are its features

Under the new policy for electric vehicles in Telangana, two-wheelers can save up to Rs 15,000 and four-wheelers can save up to Rs 3 lakh in taxes and fees. Here are the details.

Telangana transport minister Ponnam Prabhakar announced the new policy on Sunday. (X/@Ponnam_INC)

As part of its push for cleaner air, environment sustainability, and energy efficiency, the Telangana government on Sunday (November 17) came out with a new Electric Vehicles (EV) policy.

Releasing the policy, state transport minister Ponnam Prabhakar said “Hyderabad and other places in Telangana should not face severe pollution issues like New Delhi.”

The air quality in Hyderabad at 4 pm on November 18 was 123, which falls in the moderate category, while New Delhi’s was four times as bad at 494, in the severe category, according to the Central Pollution Control Board (CPCB).

The policy came into effect on Monday. It aims to promote the use of electric vehicles in Telangana in a bid to control air pollution, especially in and around Hyderabad.

What are the key features of Telangana’s EV policy?

The government has announced with immediate effect a 100 per cent exemption from road tax and registration fee on EVs for two years, till December 31, 2016. A previous limit on tax exemptions for the first 5000 EVs has been lifted and, as per the new policy, there is no limit to the number of EVs that can be registered with the tax exemptions.

The tax exemptions will apply to two-wheelers, four-wheelers, commercial passenger vehicles like taxis and tourist cabs, three-seater auto-rickshaws, electric tractors, and electric buses. With these exemptions, two-wheelers can save up to Rs 15,000 and four-wheelers can save up to Rs 3 lakh in taxes and fees.

Electric buses operated by companies or firms to ferry their employees are also exempt from the taxes.

How will the government support the EV push?

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Prabhakar said the government will work with EV manufacturers to set up more charging stations in cities and towns as well as on the state and national highways.

The state is also preparing to introduce a policy to scrap vehicles 15 years or older. Nearly 3,000 buses operated by the state road transport corporation in the Greater Hyderabad Municipal Corporation area will be replaced with electric buses in phases.

Prabhakar appealed to people who are planning to purchase new vehicles to opt for EVs, to help reduce pollution and save the environment.

Why the special EV policy?

The A Revanth Reddy-led Congress government is pushing for ‘cleaner air in a greener state’, and especially reducing pollution in Hyderabad and surrounding areas.

Sreenivas Janyala

Sreenivas Janyala is a Deputy Associate Editor at The Indian Express, where he serves as one of the most authoritative voices on the socio-political and economic landscape of Telangana and Andhra Pradesh. With a career spanning over two decades in mainstream journalism, he provides deep-dive analysis and frontline reporting on the intricate dynamics of South Indian governance. Expertise and Experience Regional Specialization: Based in Hyderabad, Sreenivas has spent more than 20 years documenting the evolution of the Telugu-speaking states. His reporting was foundational during the historic Telangana statehood movement and continues to track the post-bifurcation development of both Telangana and Andhra Pradesh. Key Coverage Beats: His extensive portfolio covers a vast spectrum of critical issues: High-Stakes Politics: Comprehensive tracking of regional powerhouses (BRS, TDP, YSRCP, and Congress), electoral shifts, and the political careers of figures like K. Chandrashekar Rao, Chandrababu Naidu, and Jagan Mohan Reddy. Internal Security & Conflict: Authoritative reporting on Left-Wing Extremism (LWE), the decline of the Maoist movement in former hotbeds, and intelligence-led investigations into regional security modules. Governance & Infrastructure: Detailed analysis of massive irrigation projects (like Kaleshwaram and Polavaram), capital city developments (Amaravati), and the implementation of state welfare schemes. Crisis & Health Reporting: Led the publication's ground-level coverage of the Covid-19 pandemic in South India and major industrial incidents, such as the Vizag gas leak. Analytical Depth: Beyond daily news, Sreenivas is known for his "Explained" pieces that demystify complex regional disputes, such as river water sharing and judicial allocations between the sister states. ... Read More