Telangana to announce electric vehicle policy today: All you need to know

Telangana is all set to announce its electric vehicle policy today. After Delhi and Gujarat, Telangana will become only the third state in India to have a comprehensive policy for electric vehicles. The EV policy was earlier passed by the Telangana cabinet in August.

Telangana is all set to announce its electric vehicle policy today. (Bloomberg)
Telangana is all set to announce its electric vehicle policy today.

According to the policy that was given a green signal by the Telangana cabinet, the state would exempt road tax and registration fees for the first batch of two lakh electric two-wheelers, 5,000 electric cars, 20,000 electric commercial vehicles and 500 electric buses.

Out of the 5,000 electric cars, half of it will be reserved for commercial purpose, like cabs.

Another 10,000 electric light commercial vehicles (LCVs), including tractors, will also get the benefit of the new electric vehicle policy. All electric vehicles bought for commercial purpose will also get incentives from the government in an effort to promote e-mobility. However, details of such incentives are not yet clear.

The Telangana Electric Vehicle & Energy Storage Policy 2020-2030 will be applicable only to electric vehicles bought after the official announcement and registered in the state.

The EV policy aims to promote clean energy and faster transition to e-mobility to help the state become a hub for electric vehicles in future. Besides the exemptions on road tax and registration fees to EV owners, the policy will also offer incentives to OEMs to manufacture electric vehicles in the state. The EV makers will be given capital subsidies, state GST reimbursements, power tariff subsidies and setting up a fast charging network in the state in a phased manner. The state’s electricity board may also offer special power tariff for EV charging stations.

(Related read: Delhi poised to be the nerve center of India's electric vehicle revolution)

Currently, Delhi and Gujarat are the only two other states which have a comprehensive electric vehicle policy. In Delhi, the state government recently rolled out the scheme to incentivise the first batch of electric vehicle owners. Last week, the Delhi govt approved more than 100 models of vehicles, including 45 makes of e-rickshaw and 12 of four-wheelers, for subsidy under the new electric vehicles policy.

Earlier in September, Gujarat had announced a new scheme aimed to incentivise switch to electric vehicles. The scheme allowed students in 9th standard or above to receive a subsidy of 12,000 to buy an electric two-wheeler. The state government had also announced subsidy of 42,000 for purchase of an electric three-wheeler for commercial purpose. The state aims at least 10,000 electric two-wheelers and 5,000 electric three-wheelers on road by end of the current fiscal year.

First Published Date: 30 Oct 2020, 10:10 AM IST
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