Telangana Proposes ₹200 Crore Scheme to Convert 18,766 Autos to Electric Vehicles

The Telangana government has proposed a ₹200 crore initiative, titled the Telangana Auto Rickshaw Electric Conversion Scheme 2026, to convert 18,766 petrol and diesel autorickshaws into electric vehicles across the Core Urban Region Economy (CURE) region in Hyderabad. Transport Minister Ponnam Prabhakar announced the recently approved scheme, which provides financial subsidies to vehicle owners.

The scheme covers 11,254 diesel and 7,512 petrol autorickshaws operating in the CURE region. Eligible owners of internal combustion engine vehicles can choose between retrofitting their current autos or purchasing new electric models.

Under the retrofitting option, drivers can convert their vehicles using an AIS-123-approved electric kit installed by empanelled vendors. The state government will provide a subsidy of up to ₹1.50 lakh, or the actual cost of retrofitting, whichever is lower, covering the kit, installation, and standard fitment accessories. Beneficiaries can opt for either fixed or swappable battery systems.

Vehicle owners opting for replacement must surrender their existing petrol or diesel autorickshaws and purchase a factory-built, type-approved electric passenger three-wheeler. Empanelled dealers will deduct a fixed subsidy of ₹1.50 lakh directly from the vehicle's final on-road price.

The government plans to finance the ₹200 crore project by allocating ₹50 crore each from the SC, ST, BC, and Minority Welfare Departments. Financial assistance will be available to all eligible auto owners regardless of their social category.

A three-level monitoring and implementation structure has been established, comprising a State-Level Steering Committee, a Scheme Implementation Committee, and a District Sanction Committee.

Minister Prabhakar stated that the initiative aims to shift Hyderabad's urban transport system toward net-zero carbon emissions while easing the burden of rising fuel expenses on auto-rickshaw drivers and improving air quality.