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Telangana rolls out India’s first state-negotiated EV discount for govt employees

Talks are ongoing with other EV makers, including Tata Motors, to widen the range of vehicles available under the scheme.

Published Mar 25, 2026 | 1:18 PMUpdated Mar 25, 2026 | 1:18 PM

Telangana govt believes EV ownership in state could become among the most affordable in India. Credit: iStock, x.com/revanth_anumula

Synopsis: Telangana has rolled out state-negotiated discounts of up to 20% on electric two-and four-wheelers for its five lakh employees, securing savings of up to ₹4 lakh per family. Partnering with leading EV makers, the scheme—without subsidies—leverages bulk institutional negotiation. Alongside charging infrastructure and retrofitting autorickshaws, the initiative strengthens Telangana’s clean mobility push.

Telangana government has announced state-negotiated discounts of up to 20 percent on two and four wheeler electric vehicles (EVs) for its employees, a move it said is aimed at accelerating the shift to clean mobility while reducing the cost of ownership.

Transport Minister Ponnam Prabhakar said the discounts, secured after negotiations with leading EV manufacturers including Mahindra Electric, Ola Electric, Gravton Motors and Ather Energy, could translate into savings of up to Rs 4 lakh per family.

The scheme is expected to benefit over five lakh state government employees, positioning Telangana as the first state in India to directly negotiate price reductions with original equipment manufacturers (OEMs) for its workforce.

‘Serving people and planet’

“This is governance that serves both people and the planet,” Prabhakar said, underlining that the government is moving beyond policy encouragement to make EVs “affordable, accessible and practical” for everyday use.

The initiative in line with the state’s earlier EV policy, under which it had already introduced 100 percent exemption from road tax and registration fees for a wide range of electric vehicles, including two-wheelers, cars, taxis, autorickshaws and buses. With the additional upfront discount, the government believes EV ownership in Telangana could become among the most affordable in the country.

The push comes following a directive from Chief Minister A. Revanth Reddy mandating all government departments to procure only electric vehicles going forward. The order also extends to hired vehicles in core urban areas, signalling a broader transition to a cleaner public transport ecosystem, an official release said on Tuesday, 24 March.

2,800 electric buses already in operation

Officials said the state already operates over 2,800 electric buses in its public transport network, marking significant progress in fleet electrification.

Importantly, the negotiated discount does not involve any direct budgetary subsidy. Instead, it has been structured under a bulk institutional framework, leveraging the government’s scale to secure better pricing from manufacturers.

The minister added that talks are ongoing with other EV makers, including Tata Motors, to widen the range of vehicles available under the scheme.

Alongside financial incentives, the government is also focusing on infrastructure expansion. Charging facilities will be set up across government offices—from the Secretariat to district and mandal levels—as well as in public parking spaces. Private players, including malls, hotels and commercial complexes, are also being encouraged to install charging stations.

Prabhakar said the government is also planning to retrofit nearly one lakh conventional autorickshaws with electric kits, further reducing urban pollution. “We don’t want Hyderabad to go the Delhi way in terms of pollution,” he said, adding that the combined push—from EV buses to retrofitting and employee incentives—would significantly cut vehicular emissions.

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