Telangana's ₹200 crore scheme to convert 18,766 autos to electric
The Telangana government has approved the Telangana Auto Rickshaw Electric Conversion Scheme 2026, a ₹200 crore initiative to convert 18,766 petrol and diesel autorickshaws into electric vehicles (EVs) in Hyderabad's core urban region. The scheme, announced by Transport Minister Ponnam Prabhakar, provides financial assistance of up to ₹1.50 lakh per vehicle. Auto owners can choose to retrofit their existing autorickshaw with an electric kit or replace it with a new electric three-wheeler.
The scheme targets the Core Urban Region Economy (CURE) area, which is the central urban zone of Hyderabad. According to government data, this region has 11,254 diesel-powered autorickshaws and 7,512 petrol-powered autorickshaws, making a total of 18,766 vehicles. All eligible internal combustion engine (ICE) autos in the CURE region are covered.
Beneficiaries who opt for retrofitting must convert their vehicles using an AIS-123-approved electric kit. AIS-123 is an Indian automotive standard specifying safety and performance norms for electric conversion kits. The installation must be done by empanelled vendors. For this option, the government will provide a subsidy of up to ₹1.50 lakh, or the actual cost of retrofitting, whichever is lower. The subsidy covers the kit, installation charges and standard fitment accessories. Owners can also select either fixed or swappable battery systems, depending on their preference and usage patterns.
Alternatively, vehicle owners may choose to surrender their existing ICE autorickshaw and buy a factory-built, type-approved electric passenger three-wheeler. In this case, a fixed subsidy of ₹1.50 lakh will be provided. Empanelled dealers are required to deduct this amount from the vehicle's final on-road price, ensuring that the benefit is passed on directly to the buyer.
The government has proposed to fund the scheme by drawing ₹50 crore each from the Scheduled Caste (SC), Scheduled Tribe (ST), Backward Classes (BC) and Minority Welfare Departments. However, assistance will be available to all eligible vehicle owners irrespective of social category, the minister clarified.
A three-level implementation and monitoring mechanism has been proposed to oversee the scheme. This includes a State-Level Steering Committee, a Scheme Implementation Committee, and a District Sanction Committee. The committees are expected to handle policy guidance, execution and sanctioning at their respective levels.
Transport Minister Prabhakar said the scheme is designed to support the transition of Hyderabad's urban transport system towards net-zero carbon emissions. He emphasised that it would also reduce the financial burden on auto-rickshaw drivers, who are directly impacted by rising fuel costs. The minister added that the initiative balances environmental protection, sustainable urban development and the economic interests of auto-rickshaw drivers. The 2026 in the scheme's name indicates the target year for the conversion programme.
The scheme is a significant step in Telangana's efforts to promote electric mobility in public transport. By offering substantial incentives and flexible options, it aims to make electric autorickshaws accessible to a wide section of drivers. Electric autorickshaws produce no tailpipe emissions and typically have lower running and maintenance costs, making them an attractive alternative in the long run. The government hopes this will lead to cleaner air and more sustainable public transport in Hyderabad, setting an example for other urban centres in the country.
