The Telangana state government has introduced a strict mandate requiring all state departments to exclusively procure electric vehicles moving forward. The directive, issued directly by Chief Minister A Revanth Reddy, is aimed at drastically reducing the carbon footprint of the state administration’s mobility fleet. Alongside direct government purchases, the administration has also instructed officials to restrict the hiring of private vehicles for official use to purely electric options within the state capital’s immediate limits.
Focus on the Core Urban Region
The new procurement rule applies most aggressively to the Core Urban Region, which primarily comprises the Greater Hyderabad limits. By phasing out internal combustion engine vehicles in government fleets operating within this densely populated zone, the administration aims to lower vehicular emissions where traffic congestion is highest.
The state government operates thousands of vehicles across various departments, from police patrolling units to municipal administration and revenue departments. Replacing this entire fleet will be a phased process, starting with the immediate ban on the purchase of new petrol and diesel vehicles.
Under the new rules, fleet managers will have to shift their purchasing orders toward electric alternatives like the Tata Nexon EV, Tata Tigor EV, or the Mahindra XUV400, which have become common in government tenders across the country.
Aligning with the new EV policy
This internal government push aligns tightly with Telangana’s broader consumer-facing electric vehicle policy announced late last year. To accelerate public adoption, the state government recently implemented a 100 percent exemption on road tax and registration fees for all categories of electric vehicles.
This tax waiver, which remains valid until December 2026, covers electric two-wheelers, three-wheelers, passenger cars, and commercial buses. Prior to this policy, electric vehicle buyers in the state were subject to road tax structures that could add significantly to the upfront purchase cost of the vehicle.
The financial incentives have already triggered a noticeable jump in private EV registrations across the state. Transport department records indicate that electric vehicle sales have seen a sharp upward trajectory over the past year. According to statements made by the state transport minister, approximately one lakh electric vehicles were sold in the state over the last year alone, heavily driven by the new tax exemptions. By forcing government departments to also adopt these vehicles, the state is attempting to lead by example and guarantee a steady baseline volume of electric vehicle deployments.
Public transport and infrastructure plans
Beyond passenger cars, the government is executing a massive overhaul of its public transport network to cut down on diesel consumption. The local transport corporation is currently operating over 800 electric buses on lease, with confirmed plans to induct another 2,800 new electric buses into the active fleet shortly. Smaller municipalities like Warangal and Nizamabad are also slated to receive dedicated electric bus fleets under central government schemes.
The state Chief Minister held meetings with transport and infrastructure officials to outline the development of a modern bus terminal at Shamshabad. This terminal is strategically located where proposed high-speed rail corridors connecting Hyderabad to Pune, Bengaluru, and Chennai are expected to converge.
As the volume of electric vehicles on the road increases, the administration has directed officials to ramp up charging infrastructure, particularly in government offices, educational institutions, and gated communities. For automotive manufacturers, the Telangana government’s strict EV-only procurement rule opens up a highly lucrative and dependable channel for bulk fleet orders over the next few financial years.
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