Telangana Launches India’s 1st State-negotiated EV Discount for Govt Staff
This is the first such initiative in India in which a State government has specifically negotiated discounts from Original Equipment Manufacturers (OEMs) for its employees to purchase EVs, going beyond conventional tax waivers to create a direct financial benefit for the government employees
Hyderabad: In a landmark move, Telangana Transport Minister Ponnam Prabhakar on Tuesday announced a first-of-its-kind initiative to encourage the adoption of electric vehicles (EVs) as an eco-friendly alternative to fossil fuel–run vehicles.
To encourage this transition, the Minister successfully secured discounts of up to 20 per cent on electric two-and four-wheelers for State government employees. This was done after multiple rounds of negotiations with leading EV manufacturers Mahindra Electric, Ola Electric, Gravton Motors, and Ather Energy.
This unique move could translate into savings of up to Rs.4 lakh per employee for around five lakh government employees across Telangana.
This is the first such initiative in India in which a State government has specifically negotiated discounts from Original Equipment Manufacturers (OEMs) for its employees to purchase EVs, going beyond conventional tax waivers to create a direct financial benefit for the government employees.
While announcing the scheme, Prabhakar said that the State was moving beyond mere encouragement by seeking to make EVs more affordable, accessible and practical for everyday use, beginning with incentives and measures aimed at government employees.
“When our government fleet goes electric, everyone in Telangana breathes cleaner air. This is governance that serves both people and the planet,” the Minister said.
Earlier too, in 2024, within a year of taking office, Prabhakar had announced and executed 100 per cent exemption from road tax and registration fees for electric vehicles, including two-wheelers, four-wheelers, taxis, autorickshaws, goods carriers, tractors, and buses, as part of its public EV policy.
“With the additional 20 per cent purchase discount, on top of the existing 100 per cent exemption from road tax and registration fees, Telangana is making EV ownership among the most affordable in the country. By empowering government employees as early adopters, we are accelerating the transition towards cleaner mobility across society,” the Minister said.
The announcement follows a clear directive from Chief Minister A Revanth Reddy, who has mandated that all government departments must henceforth purchase only EVs. Even vehicles hired by government departments within core urban areas must now be electric, signalling Telangana’s commitment to building a clean and sustainable transport ecosystem.
In a major achievement, the state already operates more than 2,800 electric buses as part of its public transport fleet. It is to be noted that the “up to 20 per cent” discount is secured through OEM negotiations under a bulk institutional framework and does not involve direct budgetary subsidy.
Further, Prabhakar added that he is actively engaging with leading EV manufacturers such as Tata EV and other Indian companies to expand partnerships and ensure more choices, better technology, and greater accessibility for consumers in Telangana.
“We want Telangana to be a leader when it comes to building an ecosystem that supports innovation, clean energy, and future-ready transportation. Our goal is simple cleaner air, lower fuel dependence, and a future where Telangana becomes a model state for green mobility in India,” Prabhakar said.
In a strong bid to encourage EV adoption, Prabhakar stated that to support this transition, charging infrastructure will be expanded across the state from the Telangana Secretariat to district and mandal-level government offices, as well as major public parking spaces ensuring convenience and confidence for EV users.
At the same time, he has also called on hotels, malls, commercial complexes, and public parks to set up EV charging facilities, making charging accessible in everyday parking spaces.
“We don’t want Hyderabad to go the Delhi way (with respect to pollution levels). Nearly one lakh auto-rickshaws currently running on petrol, diesel or gas will be retrofitted with electric kits. Along with the introduction of 2800 EV buses, these initiatives will significantly reduce vehicular pollution and promote cleaner urban transport. From a consumption standpoint, Telangana is positioning itself as an EV hub, which will, in turn, attract production companies as well,” he said.

