Telangana has approved a new electric auto conversion scheme offering subsidies of up to ₹1.5 lakh. Auto drivers will be able to choose between retrofitting existing petrol or diesel autos and purchasing new electric vehicles.
A new push for electric autos in Telangana
The Telangana government has announced a new subsidy scheme aimed at encouraging auto-rickshaw drivers to shift from petrol and diesel vehicles to electric alternatives.
Under the proposed Telangana Auto Rickshaw Electric Conversion Scheme 2026, eligible auto drivers can receive financial assistance of up to ₹1.50 lakh for an electric retrofit kit or an electric auto. The government plans to implement the programme in phases, with the first stage targeting the distribution of 18,766 electric autos.
The initiative is part of the state government’s efforts to promote electric vehicles and reduce pollution in urban areas. Instead of requiring all existing petrol and diesel autos to be replaced immediately, the scheme provides drivers with options to convert their current vehicles or move to a new electric auto.
The government is expected to begin implementing the scheme soon.
Subsidy of up to ₹1.50 lakh
The key feature of the programme is the subsidy of up to ₹1.50 lakh available to auto drivers.
The financial assistance can be used for an electric retrofit kit or for purchasing an e-auto, depending on the option selected by the beneficiary. The government plans to introduce the scheme through a structured process that will include awareness programmes, selection of kit manufacturers and finalisation of prices.
Before implementation, the authorities have decided to conduct awareness programmes with auto unions. The objective is to explain the scheme and its available options to drivers before applications begin.
The government will also select manufacturers of the electric conversion kits and determine the applicable prices as part of the preparations for rolling out the programme.
Applications to be handled online
A dedicated online portal is expected to be launched for the subsidy scheme. Auto drivers will be able to submit their applications through the portal and seek the financial assistance available under the programme.
The application process is planned to be conducted online from start to finish. This will include scrutiny of applications as well as the issuance of relevant Regional Transport Authority, or RTA, documents.
According to the scheme details, the subsidy will be transferred directly to the bank accounts of eligible beneficiaries through the Direct Benefit Transfer (DBT) system.
The government has planned the process as an online mechanism, with the stated aim of keeping the distribution of the subsidy transparent.
Two options for auto drivers
The scheme provides drivers with two distinct routes for switching to electric mobility.
Under Component A, owners of existing petrol or diesel autos can have an electric kit installed in their vehicles. This option allows the existing auto to be converted into an electric vehicle rather than being replaced.
Under Component B, drivers can scrap their old auto and purchase a new electric vehicle instead.
Both options come with the possibility of receiving a subsidy of up to ₹1.50 lakh, according to the scheme details.
This two-option structure means drivers will be able to choose between converting their existing vehicle and replacing it with a new electric auto, subject to the scheme’s eligibility and implementation guidelines.
Cabinet approval already given
The Telangana government has named the programme the Telangana Auto Rickshaw Electric Conversion Scheme 2026. The state Cabinet has already approved the scheme.
The proposal was cleared at the Cabinet meeting held on Friday. The government is expected to issue the official orders relating to the scheme on Monday, after which the detailed guidelines and procedures are expected to be released.
The formal guidelines will provide the framework for implementing the subsidy programme and processing applications.
Until those procedures are issued, the government’s announced framework establishes the broad structure of the scheme: eligible auto drivers can seek assistance of up to ₹1.50 lakh, while the electric transition can take place either through retrofitting or through the purchase of a new e-auto.
Target of 18,766 electric autos
The government has set a target of 18,766 electric autos for the initial phase of the programme.
The plan is to first undertake the conversion of petrol and diesel autos into electric vehicles in phases and subsequently make the vehicles available to beneficiaries with subsidy support.
The programme therefore combines two elements: the conversion of existing vehicles and financial assistance for drivers making the transition to electric mobility.
For auto drivers, the scheme is positioned as a route to obtain support while shifting away from conventional petrol and diesel autos. For the government, it forms part of its broader move to encourage electric vehicles in Telangana, particularly with the stated objective of reducing pollution in urban areas.
What happens next
The immediate next step is the release of the government’s official orders and detailed scheme guidelines. Following that, preparations will include the online application system, awareness programmes with auto unions, selection of retrofit-kit manufacturers and finalisation of kit prices.
Once the online portal becomes operational, drivers will be able to apply for the subsidy through the prescribed process. Application scrutiny and RTA-related documentation are also expected to be handled online.
The subsidy itself will be credited directly to the bank accounts of eligible beneficiaries through DBT.
With Cabinet approval already in place and official guidelines expected to follow, the Telangana Auto Rickshaw Electric Conversion Scheme 2026 is set to provide auto drivers with two ways to make the transition to electric vehicles, backed by financial assistance of up to ₹1.50 lakh.
0 Comments