In a bid to promote the adoption of electric vehicles and combat pollution, the Telangana government on Sunday, November 17 announced a 100% exemption from road tax and registration fees for all electric vehicles purchased in the state. The policy, valid for two years until December 31, 2026, applies to electric two-wheelers, four-wheelers, commercial passenger vehicles (including taxis and auto rickshaws), electric light goods carriers, tractors, and buses.

The announcement was made by Transport Minister Ponnam Prabhakar, who stated that the initiative aims to prevent Hyderabad from facing similar pollution challenges as New Delhi. The minister also emphasised the importance of spreading awareness about the use of electric vehicles among the public. The government also urged electric vehicle manufacturers to establish a robust network of charging stations to ensure user convenience.

This exemption will also be applicable to electric vehicles operated by the Telangana State Road Transport Corporation and buses owned by industries for transporting their employees (excluding those used for commercial purposes). The exemption is valid for two years until December 31, 2026, regardless of the number of vehicles registered.

Telangana in 2020 had become the third state in the country to launch an Electric Vehicle and Energy Storage policy after Delhi and Gujarat. The policy stated that the state would be a hub for electric vehicles, storage systems and component manufacturing, and wanted to attract investments worth $4 billion and create 1,20,000 persons jobs in the sector by 2030.