Telangana launches India's first state-negotiated EV discount for Government employees

Hyderabad (Telangana): Telangana Transport Minister Ponnam Prabhakar on Tuesday announced a first-of-its-kind initiative, which encourages the adoption of electric vehicles (EVs) as an eco-friendly alternative to fossil fuel-run vehicles, said the Telangana government on Tuesday.

To encourage this transition, Transport Minister Ponnam Prabhakar secured discounts up to 20% on electric two-and four-wheelers for state government employees. This was done after multiple rounds of negotiations with leading EV manufacturers Mahindra Electric, Ola Electric, Gravton Motors, and Ather Energy. This unique move is expected to translate into savings of up to ₹4 lakh per employee for around five lakh government employees across the state.

While announcing the scheme, Transport Minister Ponnam Prabhakar announced the establishment of a dedicated EV headquarters in Hyderabad. He characterised the initiative as a landmark step toward fostering holistic and sustainable development across Telangana.


"... A proposal has been launched in Telangana to encourage electric vehicle use among government employees. It includes a 10-20% subsidy on EV purchases, supported by companies like Mahindra. Alongside this, infrastructure like charging stations will be expanded to strengthen the EV ecosystem. For the first time, an EV headquarters has been set up in Hyderabad, marking a major step towards sustainable transport and development in the state," said Prabhakar.

Earlier in 2024, the Telangana government, under Transport Minister Ponnam Prabhakar, had announced 100% exemption from road tax and registration fees for electric vehicles, including two-wheelers, four-wheelers, taxis, autorickshaws, goods carriers, tractors, and buses, as part of its public EV policy.

"With the additional 20% purchase discount, on top of the existing 100% exemption from road tax and registration fees, Telangana is making EV ownership among the most affordable in the country. By empowering government employees as early adopters, we are accelerating the transition towards cleaner mobility across society," said Minister Ponnam Prabhakar.

The announcement follows a clear directive from Telangana Chief Minister Anumula Revanth Reddy, who has mandated that all government departments must henceforth purchase only EVs. Even vehicles hired by government departments within core urban areas must now be electric, signalling Telangana's commitment to building a clean and sustainable transport ecosystem. In a major achievement, the state already operates more than 2,800 electric buses as part of its public transport fleet.

According to Telangana government, up to 20%" discount is secured through OEM negotiations under a bulk institutional framework and does not involve direct budgetary subsidy.

Further, Minister Ponnam Prabhakar added that he is actively engaging with leading EV manufacturers such as Tata EV and other Indian companies to expand partnerships and ensure more choices, better technology, and greater accessibility for consumers in Telangana.

"We want Telangana to be a leader when it comes to building an ecosystem that supports innovation, clean energy, and future-ready transportation. Our goal is simple ~ cleaner air, lower fuel dependence, and a future where Telangana becomes a model state for green mobility in India," said Minister Ponnam Prabhakar.

In a strong bid to encourage EV adoption, Minister Ponnam Prabhakar stated that to support this transition, charging infrastructure will be expanded across the state, from the Telangana Secretariat to district and mandal-level government offices, as well as major public parking spaces, ensuring convenience and confidence for EV users. At the same time, he has also called on hotels, malls, commercial complexes, and public parks to set up EV charging facilities, making charging accessible in everyday parking spaces.

"We don't want Hyderabad to go the Delhi way (with respect to pollution levels). Nearly one lakh auto-rickshaws currently running on petrol, diesel or gas will be retrofitted with electric kits. Along with the introduction of 2800 EV buses, these initiatives will significantly reduce vehicular pollution and promote cleaner urban transport. From a consumption standpoint, Telangana is positioning itself as an EV hub, which will, in turn, attract production companies as well," said Transport Minister Ponnam Prabhakar.