The Telangana Cabinet has approved a ₹200 crore scheme to encourage petrol and diesel powered autorickshaws in Hyderabad to shift to electric vehicles.
Under the Telangana Auto Rickshaw Electric Conversion Scheme 2026, eligible auto drivers will receive a subsidy of up to ₹1.5 lakh per vehicle. The scheme aims to reduce vehicular pollution and accelerate the adoption of cleaner public transport in Hyderabad.
What the scheme offers
Auto owners will have two broad options:
- Convert their existing petrol or diesel autorickshaw into an electric vehicle using an approved electric conversion kit.
- Scrap the existing vehicle and purchase a new electric autorickshaw, with the subsidy supporting the transition.
The maximum government support will be ₹1.5 lakh per eligible vehicle.
18,766 autos identified
According to the Cabinet figures, Hyderabad’s Core Urban Region (CURE) has 18,766 petrol and diesel autorickshaws targeted under the initiative.
The government intends to use the scheme to gradually reduce the number of fossil fuel powered autos operating in the city.
₹200 crore government allocation
The state has allocated ₹200 crore for the electric conversion programme. The initiative is expected to reduce emissions while helping auto drivers move towards electric mobility.
The scheme is particularly significant for Hyderabad, where autorickshaws play an important role in last mile public transportation.
Why the scheme matters
The government says the transition to electric autos can help:
- Reduce air pollution
- Lower dependence on petrol and diesel
- Promote cleaner public transportation
- Encourage electric commercial vehicles
- Support Hyderabad’s broader clean mobility goals
However, the success of the scheme will depend on how easily drivers can access the subsidy, financing and authorised conversion facilities.
Questions for auto drivers
While the ₹1.5 lakh maximum subsidy is significant, the government will need to clarify the eligibility criteria, application process, approved conversion companies, subsidy disbursement procedure and financing arrangements before drivers can fully assess the benefit.
Business Galaxy Takeaway
The Telangana government’s ₹200 crore EV conversion scheme could accelerate Hyderabad’s shift towards electric autorickshaws. Eligible drivers may receive up to ₹1.5 lakh per vehicle, either to convert an existing petrol/diesel auto or move to a new electric auto.
Important: The ₹1.5 lakh is a maximum subsidy, not a guaranteed cash payment to every auto driver. Detailed eligibility and implementation guidelines will determine the actual benefit available to individual owners.
