5 days Ago By Sakshi Sadashiv K
Explainer Briefly Slides To encourage the adoption of electric vehicles (EVs), the Telangana Government has announced a 100% exemption from road tax and registration fees for EV purchases, reported Economic Times . This incentive covers electric two-wheelers, four-wheelers, commercial passenger vehicles like taxis, three-seater autorickshaws, light goods carriers (including three-wheeled models), tractors, and buses. The policy will remain in effect for two years, until December 31, 2026, without a cap on the number of vehicles registered during this period.
Transport Minister Ponnam Prabhakar stated that the new EV policy, effective from November 18, aims to transform Hyderabad into a pollution-free city. Additionally, all electric buses operated by the Telangana State Road Transport Corporation or owned by industries for exclusive employee transport (non-commercial use) will enjoy lifetime exemptions. Mr.
Prabhakar highlighted that the state has registered 1.7 lakh EVs so far and noted that five out of every 100 vehicles in Telangana are now electric, reported The Hindu . “It will save consumers up to Rs 1 lakh per year.
The EV policy is being introduced with the aim of preventing Hyderabad from becoming a polluted city like Delhi,” stated Mr. Prabhakar, reported MoneyControl . Telangana Previously Reversed EV Tax Exemption In August 2023, Telangana reversed its road tax exemption for EVs and introduced high rates, ranging from 11% to 15% based on the vehicle’s price, as per a report by The Hindu .
This change surprised potential EV buyers, as road tax, also known as life tax, had previously been set to zero. This move had come despite the government’s efforts to position Telangana as a hub for e-mobility. The Telangana Transport Department announced this decision as part of the government’s efforts to address revenue shortfalls, reported Telematics Wire .
Electric Cars or Hybrids Not Covered in Central Government’s new EV subsidy programme In November this year, it was reported that the Ministry of Heavy Industries (MHI) launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with a Rs. 10,900 crore allocation to promote EV adoption in India. However, the scheme does not provide support for electric cars or hybrid vehicles.
The scheme is set to run from October 1, 2024, to March 31, 2026. It offers subsidies for electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), ambulances, trucks, and other commercial EVs. It also includes grants for procuring electric buses and developing EV charging infrastructure in high-demand areas, excluding electric and hybrid cars.
Nitin Gadkari’s statements on EV Moreover, in September this year, Nitin Gadkari, the Union Minister of Roads and Highways, had expressed his perspective that subsidies for EVs might no longer be necessary. “Electric vehicles are readily available, and I believe that within two years, the cost of petrol and diesel vehicles will be the same as electric vehicles. Therefore, subsidies may not be necessary, especially since there are already savings on fuel with electric vehicles,” Gadkari stated, reported India Today .
He further mentioned that consumers are increasingly opting for electric and compressed natural gas (CNG) vehicles on their own, which lessens the need for significant subsidies for EVs. He also highlighted the advantage of a lower GST rate on electric vehicles (5%) compared to petrol and diesel vehicles (28%), reported Economic Times. Read More:.
