Giving its eco-friendly transport policy shape, the Telangana government has proposed a ₹200 crore scheme that entails the conversion 18,766 petrol and diesel autos into electric vehicles (EVs) with a substantial financial subsidy component for vehicle owners.

In a statement, Transport Minister Ponnam Prabhakar referred to the recently-approved Telangana Auto Rickshaw Electric Conversion Scheme 2026. The scheme seeks to provide financial assistance of up to ₹1.50 lakh, either retrofitting their existing autorickshaws, or purchasing new electric ones.

The Core Urban Region Economy (CURE) region has 11,254 diesel and 7,512 petrol autorickshaws. The scheme will cover all eligible internal combustion engine autos in the region. Beneficiaries have the option of choosing whether they want to go for retrofitting, or buying new electric autos.

According to the Department, those who wish to retrofit their autorickshaws can do so by converting their vehicles using an AIS-123-approved electric kit installed by empanelled vendors. The government will provide a subsidy of up to ₹1.50 lakh, or the actual cost of the retrofitting, whichever is lower, towards the kit, installation and standard fitment accessories. Beneficiaries can opt for either fixed or swappable battery systems.

Vehicle owners who choosing to replace their existing autorickshaws are required to surrender their ICE autorickshaws and and buy a factory-built, type-approved electric passenger three-wheeler. A fixed subsidy of ₹1.50 lakh will be provided, with empanelled dealers required to deduct the amount from the vehicle’s final on-road price.

The government has proposed to fund the scheme by drawing ₹50 crore each from the SC, ST, BC and Minority Welfare Departments. The assistance will be available to eligible vehicle owners irrespective of their social category.

A three level mechanism has also been proposed for implementation and monitoring, comprising a State-Level Steering Committee, Scheme Implementation Committee and District Sanction Committee.

The Transport Minister stated the scheme was intended to support the transition of Hyderabad’s urban transport system towards net-zero carbon emissions while reducing the financial burden of rising fuel costs on auto-rickshaw drivers.

Environmental protection, sustainable urban development and the economic interests of auto-rickshaw drivers were being balanced through the scheme, he stated, adding that the government aimed to take Hyderabad towards cleaner air and sustainable public transport.