Telangana’s New EV Policy: 100% Tax Exemption to Drive Green Transition
The Telangana government is set to implement its ambitious electric vehicle (EV) policy, the Telangana Electric Vehicle & Energy Storage Policy 2020-2030, beginning tomorrow. This landmark initiative aims to transform Hyderabad into a cleaner, greener city by reducing vehicular pollution while offering substantial financial incentives to EV buyers.
Key Highlights of Telangana’s EV Policy
The policy introduces several measures to encourage the adoption of electric vehicles across the state. Here’s a detailed breakdown:
100% Road Tax and Registration Fee Exemption
Under the new policy, all electric vehicles purchased and registered in Telangana will enjoy a 100% exemption from road tax and registration fees until December 31, 2026. This exemption applies to a wide range of EV categories, including:
- Electric two-wheelers
- Electric four-wheelers (private cars, taxis, and tourist cabs)
- Commercial passenger vehicles like autorickshaws
- Electric light goods carriers (three-wheeled goods vehicles, electric tractors)
- Electric buses
For electric buses operated by the Telangana State Road Transport Corporation (TSRTC), this exemption will extend for their entire operational lifespan. Additionally, buses owned by private industries for employee transportation will also benefit from these tax waivers until the end of 2026.
| Key Details | Insights |
|---|
| Policy Objective | To promote Electric Vehicle adoption under the Telangana Electric Vehicle & Energy Storage Policy 2020-2030. |
| Tax Exemption | 100% exemption on Road Tax and Registration Fees for EVs until December 31, 2026. |
| Applicable Vehicles | Includes Electric Two-Wheelers, Four-Wheelers (private/commercial), Auto Rickshaws, Taxis, Light Goods Carriers, Tractors, and Buses. |
| Buses’ Condition | Applies only to buses used for transporting employees by industries or Telangana State RTC, not for commercial purposes. |
| Coverage Period | Incentive valid for an initial two-year registration period, regardless of the number of vehicles registered. |
| Exclusion Clause | Excludes commercial buses not exclusively used for transporting employees. |
| Administrative Note | Issued under the powers conferred by Motor Vehicle Taxation Act, 1963 and Telangana Motor Vehicle Rules, 1989. |
| Why is Telangana promoting EVs? | To reduce carbon emissions, align with the EV & Energy Storage Policy 2020-2030, and position Telangana as a leader in sustainable transport. |
| Who benefits from this exemption? | Individuals, industries, and the Telangana State Road Transport Corporation operating non-commercial electric vehicles. |
| How does this policy impact EV adoption? | It makes EV ownership more affordable, encouraging more individuals and businesses to shift from conventional vehicles to electric options. |
Encouraging Public and Private EV Adoption
The policy is designed to promote EV adoption at both individual and organizational levels. Private car owners, commercial taxi operators, and logistics companies can save significantly on initial costs, with potential savings of up to ₹1 lakh annually, according to Telangana’s transport minister, Ponnam Prabhakar.
For businesses, this policy reduces the financial burden of transitioning their fleets to electric vehicles, making it an attractive option for companies focused on sustainability and cost efficiency.
Why Telangana’s EV Policy Matters
Tackling Pollution in Hyderabad
Hyderabad, like many metropolitan cities in India, faces rising air pollution levels. By incentivizing EV adoption, the government aims to curb vehicular emissions, which are a significant contributor to urban air quality issues. The policy reflects proactive governance to prevent Hyderabad from becoming as polluted as Delhi.
Boosting the EV Ecosystem
The exemption of taxes and fees is just one facet of the policy. It is part of a larger framework to develop a robust EV ecosystem in Telangana. The state aims to become a hub for EV manufacturing, research, and development, creating economic opportunities while fostering environmental responsibility.
Implementation and Legal Backing
The policy has been formally enacted through G.O.Ms.No.41, issued on November 16, 2024. This order is backed by the Telangana Motor Vehicles Taxation Act, 1963, and the Motor Vehicle Act, 1988.
The exemption applies to vehicles registered within Telangana, regardless of their numbers. However, the policy restricts exemptions for buses solely used for employee transport, ensuring that benefits remain targeted and impactful.
Telangana’s Vision for a Greener Future
With this policy, Telangana joins the ranks of progressive states actively promoting electric mobility. The government’s vision extends beyond mere incentives. By integrating this policy with infrastructure development, including EV charging stations and energy storage solutions, Telangana aims to lead India’s transition to sustainable transport.
Challenges and Expectations
While the policy is ambitious, its success will hinge on the availability of affordable EV models, sufficient charging infrastructure, and public awareness. If implemented effectively, it could serve as a blueprint for other states to follow.
Conclusion
The launch of Telangana’s EV policy marks a pivotal step toward sustainable urban mobility. By addressing both economic and environmental concerns, the state is setting a strong precedent in India’s green transition. With 100% tax exemptions and a comprehensive plan, Telangana is poised to emerge as a leader in electric vehicle adoption, paving the way for a cleaner, healthier future.
