The Telangana government has introduced a 100 per cent exemption on road tax and registration fees for electric vehicles (EVs) in the state.
The attempt is a way to give fillip to the clean energy initiative.
While unveiling the Electric Vehicle policy, the state Transport Minister Ponnam Prabhakar said it was aimed at reducing pollution levels in Hyderabad and other cities.
The exemption, to be valid for a period of two years, will be applicable to electric two-wheelers, four-wheelers, commercial passenger vehicles such as taxis, private cars and three-wheeler auto rickshaws, along with electric light goods carriers such as three-wheeled goods vehicles, electric tractors, and electric buses.
As for electric buses, the exemption will be indefinitely applicable to electric vehicles operated by the Telangana State Road Transport Corporation. For buses owned by any industry exclusively for transporting employees, and not for commercial purposes, if purchased and registered in Telangana, will be exempt from paying registration fees and road tax till December 31, 2026, irrespective of the number of vehicles it registers.
The initiative was designed to make eco-friendly transportation more accessible and encourage the adoption of EVs across different segments, the Minister said.
With this policy, the government hopes to make EVs a more attractive option for both personal and commercial use by reducing the upfront cost of ownership. Promoting EV adoption is crucial for achieving the state’s sustainability goals and addressing environmental challenges, Prabhakar said.
“The new policy will help consumers save up to a maximum of ₹1 lakh per year. It will also help in preventing Hyderabad from becoming a polluted city like Delhi,” he said.
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.