Ponnam Prabhakar announced the country’s first state-level EV subsidy scheme in Telangana.
Hyderabad: Telangana Transport Minister Ponnam Prabhakar announced on Tuesday the country’s first state-level EV discount initiative. Under this scheme, government employees will be offered a discount of up to 20 percent on the purchase of electric two-wheelers and four-wheelers.
According to an official press release, following several rounds of negotiations with EV manufacturers—Mahindra Electric, Ola Electric, Gravton Motors, and Ather Energy—discounts of up to 20 percent on EVs have been secured. This move could result in savings of up to ₹4 lakh for each employee. This discount will be applicable to approximately 500,000 government employees in Telangana.
While announcing the scheme, Prabhakar stated that the state government is now moving beyond merely offering incentives and is striving to make EVs more affordable, accessible, and practical for everyday use. This effort is being initiated through special incentives and measures specifically designed for government employees.
The press release noted, “This is a first-of-its-kind initiative in India, wherein a state government has specifically negotiated discounts with Original Equipment Manufacturers (OEMs) to facilitate EV purchases for its employees. It represents an endeavor to move beyond traditional tax exemptions and deliver direct financial benefits to government employees.”
In 2024, under its public EV policy, the Telangana government announced—and subsequently implemented—a 100 percent exemption on road tax and registration fees for electric vehicles, including two-wheelers, four-wheelers, taxis, auto-rickshaws, commercial vehicles, tractors, and buses.
The Minister remarked, “With the additional 20 percent discount on the purchase price—over and above the existing 100 percent exemption on road tax and registration fees—buying an EV in Telangana has become one of the most affordable options in the country. By empowering government employees to act as ‘early adopters,’ we are accelerating the pace of the transition toward clean transportation across society as a whole.”
This announcement follows a directive issued by Telangana Chief Minister A. Revanth Reddy, mandating that, effective immediately, all government departments shall procure only electric vehicles. The press release also states that vehicles leased by government departments in key urban areas must now exclusively be electric. This underscores Telangana’s commitment to establishing a clean and sustainable transportation ecosystem.
The release further clarifies that this concession—amounting to “up to 20 percent”—was secured through negotiations with OEMs under a ‘bulk institutional framework’ and does not involve any direct budgetary subsidy from the government. Prabhakar added that charging infrastructure would be expanded across the entire state—ranging from the Telangana Secretariat to district and Mandal-level government offices, as well as major public parking facilities—thereby providing convenience and confidence to EV users.
Additionally, he appealed to hotels, malls, commercial complexes, and public parks to install EV charging facilities, ensuring that charging remains easily accessible even at everyday parking locations.
“We do not want Hyderabad to follow the path of Delhi (in terms of pollution levels),” he stated.
The Minister noted that electric kits would be retrofitted into approximately one lakh auto-rickshaws currently running on petrol, diesel, or gas. He further added that, alongside the rollout of 2,800 EV buses, these measures would significantly curb vehicular pollution and promote cleaner transportation within the cities.
