Hyderabad: The Telangana government has approved the Telangana Auto Rickshaw Electric Conversion Scheme 2026 to promote cleaner public transport in Hyderabad.
Transport Minister Ponnam Prabhakar said the scheme aims to convert petrol and diesel-powered auto rickshaws in the Core Urban Region Economy (CURE) area into electric vehicles.
The initiative is part of the Telangana Rising Vision 2047 and seeks to reduce carbon emissions, air pollution and fuel costs for auto drivers.
₹1.5 Lakh Subsidy for Electric Auto Conversion
According to the Transport Department database, 18,766 eligible petrol and diesel autos are registered in the CURE area. This includes 11,254 diesel autos and 7,512 petrol autos.
Eligible owners can choose between two options under the scheme.
The first option allows existing auto owners to convert their vehicles using an AIS-123 approved electric retrofit kit. The government will provide financial assistance of up to ₹1.5 lakh or the actual conversion cost, whichever is lower.
Beneficiaries can choose either a fixed battery system or a swappable battery kit from empanelled vendors.
The second option allows owners to surrender their old petrol or diesel auto and purchase a new electric passenger three-wheeler. The government will provide a fixed subsidy of ₹1.5 lakh for an eligible factory-made and type-approved L5M electric auto.
The subsidy will be deducted from the vehicle’s on-road price by the empanelled dealer before delivery.
Telangana Sets Aside ₹200 Crore for Auto Electrification
The state government has proposed ₹200 crore for implementing the electric auto scheme. The funds will be contributed equally by the SC, ST, BC and Minority Welfare departments, with ₹50 crore allocated from each.
The government has also proposed a three-tier monitoring mechanism to ensure transparent implementation.
A State Level Steering Committee will oversee the scheme at the state level. A Scheme Implementation Committee will coordinate its execution, while District Sanctions Committees will handle approvals at the district level.
Minister Ponnam Prabhakar said the initiative would provide both environmental and economic benefits.
He said electric autos could significantly reduce air and noise pollution while helping drivers reduce their dependence on petrol and diesel.
The government aims to use the scheme to move Hyderabad towards cleaner air, sustainable public transport and lower operating costs for auto drivers.
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