Telangana Proposes INR 200 Crore Scheme to Electrify 18,766 Petrol and Diesel Auto Rickshaws

The Telangana government has proposed a INR 200 crore financial assistance scheme aimed at accelerating the transition of petrol and diesel autorickshaws to electric vehicles in Hyderabad’s Core Urban Region Economy (CURE) area.

Under the proposed Telangana Auto Rickshaw Electric Conversion Scheme 2026, owners of eligible internal combustion engine autorickshaws will be offered financial support of up to INR 1.50 lakh for either retrofitting their existing vehicles or purchasing new factory built electric three wheelers.

The CURE region currently has 18,766 autorickshaws, comprising 11,254 diesel and 7,512 petrol vehicles. The scheme is expected to cover all eligible petrol and diesel autorickshaws operating in the region.

Owners choosing conversion can retrofit their vehicles using electric conversion kits approved under AIS 123. The kits will have to be installed by vendors empanelled by the government. The subsidy will cover the cost of the kit, installation and standard fitment accessories, subject to a ceiling of INR 1.50 lakh or the actual retrofit cost, whichever is lower. Both fixed and swappable battery options will be permitted.

Those opting for replacement instead of retrofitting will have to surrender their existing internal combustion engine autorickshaws and purchase factory built, type approved electric passenger three wheelers. A fixed subsidy of INR 1.50 lakh will be applicable, with empanelled dealers required to reduce the subsidy amount from the final on road price of the vehicle.

The proposed funding structure includes INR 50 crore each from the SC, ST, BC and Minority Welfare Departments. However, the financial assistance will be available to eligible autorickshaw owners irrespective of their social category.

Implementation and oversight will be handled through a three tier institutional framework comprising a State Level Steering Committee, a Scheme Implementation Committee and District Sanction Committees.

According to the State government, the initiative is intended to accelerate the shift towards cleaner urban mobility in Hyderabad while helping autorickshaw drivers manage the rising cost of conventional fuels. The scheme is also positioned as part of Telangana’s broader efforts to reduce urban emissions, improve air quality and promote sustainable public transport.

Transport Minister Ponnam Prabhakar said that the programme seeks to balance environmental objectives with the livelihood and economic interests of autorickshaw operators, while supporting Hyderabad’s longer term transition towards net zero carbon emissions.