The Telangana government has approved a new electric vehicle policy for the state. Under this initiative, 100 per cent exemption on road tax and registration will be provided to the first two lakh electric two-wheelers and first 5,000 electric commercial four-wheelers. This subsidy also extends to 20,000 three-seater electric auto rickshaws. Also included are 10,000 electric LCVs, 5,000 private electric four-wheelers and 500 electric buses.

These cars will be supported by a proposed ecosystem for electric mobility that will include infrastructure such as charging stations and battery swapping facilities.

Unlike the Delhi government’s policy that is aimed to promote EVs as a viable alternative to current forms of urban mobility, the Telangana government’s focus is on developing the state into an EV manufacturing hub. Manufacturers and other industries related to EVs will be eligible for a 20 per cent capital investment subsidy capped at Rs 30 crore. There will also be a subsidy on power tariffs capped at Rs 5 crore while 100 per cent reimbursement of SGST will b provided. This is limited to Rs 25 crores and seven years. The government will also pay the interest costs for these firms, limited to 5.25 per cent for five years and capped at Rs 5 crore. Finally, other exceptions like that on stamp duty will be given.

The state is expecting a Rs 30,000 crore investment to be made in this industry. This should lead to 1.2 lakh direct and 2.5 lakh indirect new jobs. To make this happen, the Telangana government will be setting up two exclusive induatrial parks for EV industries over 775 acres. These will work with the infrastructure already created for the Electronic Manufacturing Clusters at Raviryal and Maheshwaram.

The Telangana and Delhi EV policy show that there are numerous ways that this integration of EVs into our society can begin. For Delhi, the more populist strategy of incentivizing individual to switch to EVs seems more suitable given its critical pollution problems. While for Telangana, this switch can be integrated deeper through all levels of the economy. This may lead to deeper integration but calls for deeper investment with a more long term plan.


Our priority is to make lithium ion batteries in India, says Nitin Gadkari

There is a need to reduce dependence on the import of lithium ion batteries, one of the key components in electric vehicles (EVs), road transport and highways minister Nitin Gadkari said on Thursday.

“In e-mobility technology, the most imp thing is we should not depend on import the material used to make these vehicles. Our priority is to make all these materials , particularly lithium ion batteries in India,” Gadkari said at the e-mobility conclave.


“We have given mines of lithium ion to two private companies. We expect to get raw material as early as possible. At the same time we are developing technology. We are also doing research on sodium ion technology,” he said.

Lithium cells are the building blocks of rechargeable batteries for EVs, laptops and mobile phones. Currently, India is heavily dependent on import of these cells as the battery metal is available in India. This is also one of reasons why battery manufacturing has not picked up significantly in India even as the finance ministry last year announced customs duty exemption on lithium-ion cells, to lower the cost. Globally, lithium-ion cell manufacturing is dominated by China, followed by US, Thailand, Germany, Sweden and South Korea.


According to the minister, there is a need to make more EVs as higher volumes will ultimately reduce the cost of the product. “It is (electric vehicle) is economically viable as compared to petrol, diesel vehicle,” he said. “In the due course of time I expect people to use it.”




    • Battery cost dropping rapidly and may reach to half of its current level in less than 10 years.
    • Electric Vehicle performance is expected to improve by 2 times from its current levels in 10 years.
    • Charge time is decreasing from 5 hours to less than 1 hour thus reducing the Range anxiety.
    • Energy cost per km for electric vehicles is 4-5 times less than gasoline equivalents. However, the initial ownership cost of Electric vehicles is currently on the higher side.

Government of India (GOI) in its Automotive Mission Plan 2016 has laid a vision of ‘safe, comfortable and efficient mobility with an eye on environmental protection and affordability through both public and personal transport options’.


  • Nearly 80% of India’s crude requirement is imported.
  • Diesel based causes air quality degradation that perpetuates climate change. 
  • Diesel exhaust contains pollutants causing major health risks such as heart diseases, lung cancer etc


Electric vehicles in India has received little public interest despite being available for a significant period (REVA was launched in 2001), primarily due to the following issues

  • Inadequate charging infrastructure and high charging time with existing battery technologies
  • Absence of an Electric Vehicle portfolio across segments comparable with available ICE Vehicles
  • Maturity of current Battery technologies as well as the cost parity of EV’s with ICE vehicles


India currently has roughly 20 cars per 1000 persons, compared to 800 cars per 1000 persons in the United States, creating the growth opportunity but also posing challenges in terms of energy security, and environmental/infrastructure balance. The Indian Auto market size is projected anywhere between 9.8 M(@5.8 % growth) to 13.4 M(@7.5 % growth) cars alone in the year 2026. GOI launched its FAME scheme in 2015, outlining subsidies for EV adoption and bringing focus on four key areas of technology development, demand creation, pilot projects and charging infrastructure. However, the pace of adoption despite the government push failed to meet expectations, primarily due to lack of adequate charging infrastructure along with the high price & low performance of EVs. While the Pace of EV and battery technologies developments forecast a price/ performance parity with ICE vehicles by 2025, the availability of charging infrastructure remains a challenge and key to mass EV adoption.


Telangana was judged as No. 1 state in Ease of Doing Business for 2016 in DIPP rankings. As per a recent report by ASSOCHAM, Telangana surpassed its southern peer states in attracting investments. 

  1. A  major highlight of this reform process is TS i-PASS,  a  path-breaking industrial project approval system that provides time-bound clearances (15 days for megaprojects) based on self-certification. 
  2. Telangana State policy support goes beyond Ease of Doing Business and industrial infrastructure in form of preferential allotment to Made in Telangana products for government orders
  3. Telangana has the desired social and urban infrastructure to translate into a strong demand and nurturing ground for EV technologies. 
  4. Telangana has attracted significant investments from new and existing automotive units since its formation and is home to Mahindra & Mahindra and MRF manufacturing base along with Hyundai and ZF global R&D centers. 
  5. Telangana holds the legacy of a strong Electric & Electronics (core, defense, and aerospace) manufacturing base led by PSUs like ECIL & BHEL.
  6. A good supply of knowledge workers from premier technical Institutes such as IIT and IIIT has well supported these knowledge-based entities which can be further leveraged to support Research and Innovation initiatives for Electric Vehicles
  7. Telangana Industrial Infrastructure is unmatched with its vast Industrial land bank, 24*7 Power, and water supply.  Telangana holds a strong logistic advantage with its location on India’s Map and excellent highway.
  8. Telangana has abundant native labour supply for all shop floor activities in a manufacturing environment.


To establish  Telangana as the benchmark state in  India and a  showcase model of  International standards for  Electric Vehicle adoption across segments  (personal,  shared and commercial), supported by a world-class infrastructure and ecosystem. 


 The EV policy is targeted to achieve 100% migration to Electric Vehicles by 2030 in Telangana state in  alignment  with  Government  of  India  vision,  supported  by enabling  infrastructure  and local manufacturing base for Electric Vehicles and related components


  1. To attract investments worth 3.0 B USD and create employment for 50000 persons by 2022 through EV manufacturing & charging infrastructure development.
  2. Provide best in class ecosystem & infrastructure to make Telangana the EV Hub of India
  3. Develop a proving ground for viable Business models through accelerated demand for EVS
  4. Promote innovation in EVs and other emerging trends such as Autonomous/Connected Mobility
  5. Make Telangana state the preferred destination for Electric Vehicle &component manufacturing
  6. Creating a pool of skilled workforce for the Industry
  7. Create an ambiance for Industry & Research institutions to focus on cutting edge research in EV technologies


  1. Clear Definition of incentives on Supply and Demand Side of an Electric Vehicle ecosystem
  2. Support and a clear roadmap for developing charging infrastructure in the state
  3. Incentives related to various components of ownership cost of Electric Vehicles 
  4. Mandating Use of EVs at Institutional Level Starting with Government entities
  5. Establishing a start-up ecosystem to nurture innovation in EV technology space
  6. Support for Research & Innovation in Electric, Autonomous & Connected Mobility 
  7. Emphasis on skill development for EV design, development & manufacturing
  8. Promote manufacturing of Battery cells and packs through special status/ incentives


This policy builds upon the Telangana Industrial Policy framework 2014 that defined the Auto Sector as one of the priority sectors. However, considering the current shift in the Auto Sector towards Electric Vehicles, special status is accorded here to EV and EV component Industry. Both demand and supply side is assigned equal importance for policy support as demand is key to establishing an EV ecosystem. 

10.1 Demand Side Incentives: 

  • a) Road tax exemption for all-electric vehicles till 2025, expected year of price parity with ICE vehicles
  • b) Simulate demand for EVs through areas of quick adoption such as Taxi services, Public Transport and Institutional transportation
  • c) Establish an adequate network of charging/swapping 
  • d) Preferential Allotment will be made to Make in Telangana Vehicles for Government Orders

10.1.1 EV in Shared Mobility

  • a) Battery operated shuttle services at all Hyderabad Metro Stations for last-mile connectivity
  • b) A time-bound mandate for all auto rickshaws within GHMC to switch to EV, followed by other cities
  • c) Encourage cab operators/ aggregators to switch to full EV fleet in a phased manner.
  • d) Permission for corporate ownership of e-auto rickshaws/e-Ricks to enable entrepreneurship and create jobs for the economically backward segments. 
  • e) Extension of transport department retro fitment rule for existing vehicles.
  • f) Permission for ARAI certified E-rickshaws in the state.

10.1.2 EV in Public/Institutional Transport

  • a) Telangana State Transport corporation to set a target of 100% electric buses induction into their fleet.
  • b) Airport flight shuttles and PUSHPAK buses to be transitioned to EV on priority
  • c) Government vehicles (owned and contractual) to switch to all-electric by 2025, in a phased manner.
  • d) Contract carriage permits for private operators with EV fleet operations
  • e) Tourist places (national parks, ecological sites) in the state to switch to all EVs for transportation in and around their premises. 

10.1.3 EV in Corporate Transport, Hospitals and Educational Institutes

  • a) Corporate  offices  with an annual  turnover  of  Rs  50+  Crores  operating  within  city  limits  to compulsorily migrate 50% of their employee commuting fleet to EVs 
  • b) Allow use of CSR funds for electrification of employee commuting fleets
  • c) Encourage educational institutions & hospitals for a 50% switch of their Buses/Derivatives/Passenger vehicles fleet to Electric Vehicles

10.1.4 EV in Freight Transport, Logistics & Delivery Services and other applications

  • a) Encourage all freight and logistics firms to use Electric Vehicles in a phased manner
  • b) Intra-city goods delivery services (sub 2T category) to switch to EVs only by 2030 in a phased manner 
  • c) Encourage all app-based and e-commerce delivery services to migrate 100% of their vehicles fleet to EVs 
  • d) Use of Battery operated Application vehicles will be encouraged in government departments such as Municipal Corporations, Postal Services etc. across Telangana State.

10.1.5 EV for personal mobility

  • a) Exemption of registration charges on personal vehicles purchase
  • b) Interest-free loans up to 50% of the cost to all state government employees for the purchase of EVs
  • c) Only Electric vehicles will be allowed in high traffic density areas, Heritage zones, IT SEZs and similar EV Zones in Hyderabad.
  • d) Free Parking in public parking places and Toll exemption on State Highways for EVs

10.2 Supports for Charging Infrastructure

  • a) Adequate policy support will be provided for the development of charging/swapping infrastructure 
  • b ) Government  of  Telangana  will work  with  GOI  for the  development  of common  standards  for batteries and charging infrastructure to ensure interoperability wherever possible. 
  • c) Government will set up first 100 fast charging stations in GHMC and other cities in a phased manner.
  • d) Charging points for personal vehicles of Government employees would be provided at Government office parking lots, starting with Hyderabad, followed by other cities in the state.
  • e) A viable business model will be developed for Private players to setup ARAI compliant EV charging stations/ infrastructure at public places such as airports, railway/ metro stations, parking lots, bus depots, markets and malls.
  • f) Electricity distribution companies will bring in amendments to their policies to enable setting up of private charging station and allow re-sale of power
  • g) A separate category of Power tariff will be created for EV Charging, both public and private. Duty exemption on power tariff will be extended to public charging stations for duration of 5 years
  • h) Land belonging to Government Agencies within Hyderabad and other cities will be offered to private players on long term lease at subsidized rates and 2 year moratorium period on rental payment for setting up charging/swapping stations, through a transparent bidding process. 
  • i) Provision for charging spots will be made mandatory in all commercial buildings 
  • j) Amendment to building and construction laws will be made to ensure charging infrastructure is integrated at the planning stage itself for all new constructions. 
  • k) All existing apartment associations with 200+ families will be encouraged to provide charging points in parking lots.
  • i) Existing Residential Townships with 1000+ families will be encouraged to develop charging stations
  • m) 75% of SGST paid on the fast charging equipment / machinery procured by any entity for setting up private/public/institutional charging stations will be reimbursed.
  • n) Supply of Renewable energy will be ensured on preferential basis at special tariffs for EV charging stations with zero connection cost and wheeling charges
  • o) A battery disposal infrastructure model will be created to facilitate deployment of used EV batteries
  • p) Charging/ swapping station will be provided at every 50 kms within state boundaries on highway.
  • q) HMR stations and TSRTC Bus depots (across state) will provide reserved parking and free charging stations for two wheelers in their parking zones

10.3 Supply Side Incentives:

The Government will provide benefits/incentives, depending upon the scale of investment as per the categories defined in MSMED act 2006 and Telangana Industrial Policy framework 2014. Investments beyond 200 Crores will be treated as Mega Projects and will be offered tailor made benefits

10.3.1 Infrastructure Support: 

EV Cluster: A designated EV cluster spread over 1500-2000 acres catering to EV/EV component manufacturing for two wheelers, Cars, Buses & Trucks will be integrated with the Automotive Park plan. The EV cluster will have common facilities specific to the requirements of EV units, as given below

  1. Shared facilities to meet staffing and training requirements
  2. A common facility for Design, prototyping and testing available to all units in the cluster

An Automotive Suppliers Park(ASP) to improve the logistics competitiveness for the units

  • Common infrastructure such as Drainage/ ETP/ STP& utilities such as Power, Gas &Water
  • A State-of-art Business environment with facilities such as Convention & exhibition centres
  • A Logistics Hub to provide with multimodal transport for safe and efficient handling of cargo

Built-Up Space with ready factory sheds will be developed to be used mainly by MSME units. 

a) Automotive Electronics Cluster: An  Automotive  Electronics Cluster will be developed within the proposed Electronics city near  Hyderabad where  Special status and incentives will be accorded to units manufacturing electronic components including batteries cells/Packs for Electric Vehicles.

b) Land: Allotment of land will be carried out across three categories:

  • Plots in Integrated Automotive Parks & EV Clusters developed by TSIIC for purchase or on lease with common facilities including ETP, internal infrastructure and other common facilities
  • Individual Plots on Stand-Alone Basis outside the Industrial Parks developed by TSIIC
  • Land for Development of Automotive Park / EV Cluster developed through privately owned or PPP modes of investments

c) Industrial Water: Government has earmarked  10%  water from  all  existing  and  new  irrigation sources for industrial utilization. Water will be provided at subsidised rates to Mega Projects

d) Industrial Power: 24*7 Power supply is a norm for Industrial units operating in Telangana State. Furthermore, Power Tariff Subsidy and duty exemption will be extended to EV units in the state.

e) Support Infrastructure: Support infrastructure like roads, power and water will be provided at door  step  of  the  industry  for  standalone  units  through  Infrastructure  assistance  under  IIDF 

f) Environmental Infrastructure: In the Auto Parks / EV Clusters, Government will facilitate the development of a Common Effluent Treatment Plant (CETP)/Sewage Treatment Plant (STP) in PPP mode by engaging experienced firms.

10.3.2 Research & Development: 

Considering that the EV technologies are fast evolving, the need for Research & Development is key to accelerate the parity point of price/performance with ICE vehicles. It will also help develop solutions as per local operating conditions and local supply chain considerations. 

  • Smart Mobility Technologies Cluster (SMT): T-Hub has launched a start-up incubation program named Smart Mobility Technologies cluster, to promote innovation in advance mobility space, particularly EVs. SMT Cluster will form a mentor board in partnership with EV, shared mobility, and Energy firms to help start-ups translate their ideas into a viable business model. An Incubation fund with Industry support will be created to provide financial support to Start-ups in EV space. 
  • Mobility Engineering Cluster: A Mobility Engineering will be developed with Industry partnership. This facility with its state of the art infrastructure is envisaged to establish a global benchmark in design, development and validation for EVs and autonomous/ connected mobility. 
  • Centre of  Excellence: State  Government will partner with premier  Technical  Institutes and research establishments across the state to  establishing  Centre of  Excellence for conducting market-focused research on Battery Technologies, battery management, motors, and controllers. 
  • EV Research Hub: A dedicated facility with special incentives will be developed to house EV R&D centers by local and global EV Majors.  
  • Telangana EV Innovation Fund: An  Innovation fund will be created by the government  to offer financial  support to  EV  OEMs,  ancillaries, and  Start-ups  for  research  and  innovation in  Battery technologies.  
  • EV Testing Facility: One of the major costs for the industry is the testing of components and vehicles for compliance with global standards. Telangana State will pursue with the GOI to bring a National Automotive Testing and R&D Infrastructure Project (NATRIP) for Electric Vehicles to the state
  • T-Works  Automotive  Prototyping center: Recognised as  India’s largest  Prototyping  Center,  T-WORKS  will have a  dedicated wing for prototyping of  Electric  Vehicle components/assembly. Industry partnership in the same will be invited from EV OEMs and large component manufacturers. The facility will serve start-ups and MSME units in the EV space at subsidised rates.


The availability of quality manpower in good supply is key to supporting any  Industrial operation. The state will identify nature and quantum of the skill set required by the institute to develop and execute training programs on EV design, development & manufacturing through various channels

  • Telangana  Academy of  Skill  and Knowledge(TASK):  On lines of the  National  Skill  Development  Corporation  (NSDC),  a  not-for-profit company under the  Companies  Act,  2013.  A dedicated Skill development centre for EV/EV component manufacturing on PPP model will be set up under the aegis of TASK and with support from EV Industry. 
  • Finishing  Courses: Short  term  (4-6  months)  finishing course post completion of graduate Engineering courses will be introduced  in select  Engineering  Colleges and  Premier  Technical Institutes in collaboration with  Global  Tech  Universities.  These courses will be designed in consultation with EV Industry and will include short internship module at partnering OEMs 
  • PG Courses on EVs: 2-year PG course on EV Technology with scholarship assistance will be initiated in partnership with premier institutes such as IIT Hyderabad and IIIT Hyderabad and in consultation with the EV industry. NIT Warangal is already running one such master’s programme.

10.3.4 Battery Cell Manufacturing and Assembly Promotion

Manufacture and assembly of Advance* batteries will be encouraged in the State by means of special status and incentives. 

*Lithium-ion and other battery chemistries with an energy density higher than the Li-ion battery 

10.3.5Charging/swapping Equipment Manufacturing Promotion

Development of a charging network is dependent on the quality supply of charging/swapping equipment &machinery. 


  • Single-Window System: Telangana implemented TS i-PASS in 2015, an Industrial Project approval system based on self-certification. It also protects Investors interest with Right to Single Window Clearance and provision for penal action on the officers who delay the applications. 
  • Exit Mechanism: Considering the high volatility  and the risk associated with maturing EV Technologies, the Government of Telangana in consultation with the Government of India will put in place a mechanism for a reasonable exit strategy for the EV enterprises. 
  • Labour Environment: Subject to applicable laws as far as possible, the Government will consider giving permission to the Electric Vehicle and components industry for 24×7 (three shifts) operations, employment of women in night shifts, flexibility in employment conditions including working hours for women and shorter/ longer shift timings and hiring of contract workers. 
  • Technical Committee to certify/define an EV enterprise: A Technical Committee will be constituted with a  mandate to certify/define  Vehicle/  components  Manufacturers including  EV  lithium-ion battery units claiming incentives and concessions under Telangana Electric Vehicle Policy.
  • Steering Committee for EV Charging Infrastructure: A steering committee will be constituted with a mandate of time-bound implementation of charging station network in Hyderabad City followed by other cities/smart cities within Telangana State
  • Telangana  State  EV  Advisory council: A  “State  Electric  Vehicle  Advisory  Council”  shall be constituted with support from SIAM, ACMA, SMEV, CII, FICCI and other industry associations. This council and will have distinguished members from Industry, Academia and Research who will review the progress of EV policy initiatives on both demand and supply side. The council will advise the Government on remedial measures needed to address any concern as well as course corrections at policy level. This Consultative Committee shall also facilitate coordination with the Government of India in areas requiring support for effective development of EV ecosystem in the state