Telangana launches ₹200 crore scheme to electrify auto rickshaws

The Telangana government has announced a ₹200 crore initiative to convert 18,766 petrol and diesel auto-rickshaws into electric vehicles (EVs) under the newly approved Telangana Auto Rickshaw Electric Conversion Scheme 2026. Transport Minister Ponnam Prabhakar highlighted the scheme's dual focus on environmental sustainability and financial relief for auto-rickshaw drivers.

Subsidies for Retrofitting or Replacement

The scheme offers financial assistance of up to ₹1.50 lakh to eligible auto-rickshaw owners, who can choose between retrofitting their existing vehicles with AIS-123-approved electric kits or purchasing factory-built electric three-wheelers. For retrofitting, the subsidy will cover the cost of the kit, installation, and standard accessories, with beneficiaries able to opt for fixed or swappable battery systems.

Owners opting to replace their vehicles must surrender their internal combustion engine (ICE) auto-rickshaws and purchase type-approved electric models. The ₹1.50 lakh subsidy will be deducted directly from the vehicle’s on-road price by empanelled dealers.

Inclusive Funding and Oversight Mechanism

The scheme will be financed by drawing ₹50 crore each from the SC, ST, BC, and Minority Welfare Departments. Importantly, the financial assistance is available to all eligible vehicle owners, regardless of their social category. Implementation and monitoring will be overseen by a three-tier mechanism, including a State-Level Steering Committee, Scheme Implementation Committee, and District Sanction Committee.

Aiming for Cleaner Air and Economic Relief

The initiative is part of Telangana’s broader strategy to transition Hyderabad’s urban transport system towards net-zero carbon emissions. Minister Prabhakar emphasized that the scheme balances environmental goals with the economic interests of auto-rickshaw drivers, who face rising fuel costs. The government hopes this move will contribute to cleaner air and sustainable public transport in the city.

This scheme marks a significant step in Telangana’s push for eco-friendly urban development, aligning with global trends toward electrification and sustainable mobility.

Source: The Hindu