Hyderabad: Transport Minister Ponnam Prabhakar launched an EV incentive scheme for government employees, offering manufacturer discounts of 10% to 20% on electric vehicles.
He said the EV incentive scheme marked a first-of-its-kind effort in India, where a state directly negotiated price reductions with manufacturers instead of limiting benefits to tax exemptions. The government secured these discounts after discussions with Mahindra Electric, Ola Electric, Gravton Motors, and Ather Energy.
According to the Minister, the initiative could deliver savings of up to ₹4 lakh per employee. It targets nearly five lakh government employees across Telangana. He added that the move aims to accelerate the adoption of electric vehicles as a cleaner alternative to fossil fuel-based transport.
Ponnam Prabhakar said the government designed the EV incentive scheme to make electric vehicles more affordable and practical. “When our government fleet goes electric, everyone in Telangana breathes cleaner air,” he said, stressing the environmental benefits of the transition.
The Minister also highlighted that the discounts were arranged through an institutional bulk framework. He clarified that the scheme does not involve direct budgetary subsidies.
EV incentive scheme expands affordability and adoption
The EV incentive scheme builds on earlier policy measures introduced in 2024. The Telangana government had already granted 100% exemption from road tax and registration fees for all categories of electric vehicles, including two-wheelers, cars, taxis, autorickshaws, and buses.
With the additional manufacturer discounts, the state is positioning EV ownership among the most affordable in India. The Minister said this approach would encourage government employees to act as early adopters and drive wider social acceptance.
The announcement followed directions from Chief Minister A. Revanth Reddy, who mandated that all government departments must purchase only electric vehicles. In addition, vehicles hired for official use in urban areas must also be electric.
Telangana currently operates more than 2,800 electric buses in its public transport system. The Minister said the government plans to expand charging infrastructure from the Secretariat to district and mandal offices. Public parking areas will also receive charging facilities.
He further urged private establishments such as hotels, malls, and commercial complexes to install EV charging stations. This, he said, would ensure convenient access for users in daily life.
Separately, the government plans to retrofit nearly one lakh auto-rickshaws with electric kits. The initiative aims to reduce pollution levels and avoid air quality issues seen in cities like Delhi.
Ponnam Prabhakar said the state is also engaging with companies such as Tata EV to widen partnerships. He added that Telangana aims to emerge as a hub for electric mobility, attracting both consumption and manufacturing investments.