Telangana launches ‘electric vehicle and energy storage policy’ — first 2 lakh electric two-wheelers exempted from road tax

Telangana launches ‘electric vehicle and energy storage policy’ — first 2 lakh electric two-wheelers exempted from road tax
BCCL
  • As part of its new policy to promote electric vehicles, the Telangana government will offer 100% exemption of road tax and registration fee purchased and registered within the state.
  • The policy to promote electric vehicles in the state will be effective until 2030.
  • Incentives include road tax exemption for first two lakh electric two-wheelers, capital and power tariff subsidies, among others.
Telangana Ministers KT Rama Rao and Ajay Kumar have launched the policy to promote electric vehicles in the state. The policy will be effective until 2030.

As part of its new policy to promote electric vehicles, the Telangana government will offer 100% exemption of road tax and registration fee purchased and registered within the state, according to the State Electric Vehicle and Energy Storage Policy.

“To make Telangana a major base for EV and ESS (energy storage system) sectors and to attract investments worth $4 billion and create employment for 120,000 persons by 2030 through EVs in shared mobility, charging infrastructure development and EV and ESS manufacturing activities,” the policy said.

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Following are the demand side incentives proposed under the Telangana State Electric Vehicle and Energy Storage Policy 2020 – 2030 to incentivize usage of Electric Vehicles in the state of Telangana.

SegmentIncentives offered
Electric Two Wheelers100% exemption of road tax & registration fee for the first 2,00,000 electric 2 wheelers
Electric Three-seater Auto-Rickshaws100% exemption of road tax & registration fee for first 20,000 electric 3 wheelers. Retro-fitment incentive at 15% of the retro-fitment cost.
Electric 4-Wheeler commercial passenger vehicles100% exemption of road tax & registration fee for the first 5,000 electric 4-wheeler commercial passenger vehicles such as Taxi, Tourist Cabs, etc
Light Goods Carriers100% exemption of road tax & registration fee for first 10,000 Electric three-wheeler (goods), e-carriers as well as electric Light Goods carriers.
Private Cars100% exemption of road tax & registration fee for the first 5,000 Electric 4-Wheeler private vehicles.
Buses100% exemption of road tax & registration fee for the first 500 Electric buses.
Tractors100% exemption of road tax & registration fee shall be applicable for electric tractors.


The policy also called for developing Telangana as a global centre for cutting-edge research and innovation in electric vehicles, battery technologies and other emerging technologies such as autonomous/ connected vehicles. The government will extend tailor-made benefits to mega and strategic projects on a case to case basis.

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Investment of more than ₹200 crore in plant and machinery or providing employment to more than 1,000 people shall be categorised as megaproject.

"Telangana has come out with an extremely comprehensive policy. We also ensured that energy story policy is clubbed in with the EV policy because these two are tight-knit ideas which need to work cohesively...we have taken a pragmatic approach while designing this policy and consulted industry leaders," Rama Rao after unveiling the policy.

The government on Friday signed MoUs with five firms that are set to invest in the EV space.

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(with wires input)

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