Hyderabad to get 65,000 new eco-friendly autos as Telangana lifts decades-old permit cap

The state issued GO No. 263 relaxing the long-standing cap on new auto rickshaw permits within Greater Hyderabad. For over two decades, restrictions were placed on operating new petrol and diesel auto rickshaws.
E Auto
Move aims to cut pollution and boost jobs; drivers flag fare revision, illegal autos and fuel shortages as key concerns
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3 min read

HYDERABAD: In a major move aimed at reducing pollution and improving urban transport in Hyderabad, the Telangana government has approved the introduction of 65,000 new eco-friendly auto rickshaws within the city limits and the Outer Ring Road (ORR).

The decision, driven by Transport Minister Ponnam Prabhakar and aligned with Chief Minister Revanth Reddy’s vision, is expected to contribute to environmental sustainability and employment generation.

The state issued GO No. 263 relaxing the long-standing cap on new auto rickshaw permits within Greater Hyderabad. For over two decades, restrictions were placed on operating new petrol and diesel auto rickshaws.

However, with rising urban population, expanding residential layouts and increasing demand for last-mile connectivity, the state government has granted permission for 20,000 new electric auto rickshaws, 10,000 new CNG auto rickshaws, 10,000 new LPG auto rickshaws and 25,000 retrofitted electric auto rickshaws.

The government has emphasised that only one permit will be issued per individual to prevent misuse or unauthorised trade of permits.

It has also clarified that no new or transferred permits will be issued for diesel or petrol auto rickshaws within ORR limits.

Auto drivers voice operational concerns

Though the initiative is expected to create employment opportunities for nearly 65,000 families, providing a livelihood boost to many urban and semi-urban households, the auto drivers voiced several operational concerns.

Speaking to TNIE, auto driver Veeraiah, who has been running an LPG auto for the past 15 years, pointed out that auto drivers are still following fare rates that were fixed 15 years ago, making it difficult to manage rising fuel and maintenance costs. He urged for the revision of fares.

He also raised a serious concern about the influx of autos from other districts, stating, “There are nearly twice as many autos from outside the city operating in Hyderabad compared to those registered within the city limits.” He explained that while a CNG auto costs around `5.8 lakh in the city including the permit, the same vehicle can be purchased for about `2.8 lakh outside the city.

These district autos are illegally operated in city limits, not following the 60 km operational radius rule, he added and urged the traffic police for the strict enforcement of the norms.

Responding to this, Joint Transport Commissioner C Ramesh informed that there are over 1 lakh autos functioning in the city and steps are being taken to curb operation of autos registered outside GHMC limits (other than TS - to TS 13).

TGPWU Founder President Shaik Salauddin noted a severe shortage of LPG and CNG at fuel outlets across the city. “Drivers have to wait in long queues just to fill their tanks. The infrastructure is not keeping up with the demand,” he said. He also urged the government to establish electric charging points across the city to support the growing number of electric vehicles and ensure smooth operations.

Govt’s incentives for retrofitment of autos

It is to be noted that the government appointed Telangana State Renewable Energy Development Corporation Limited (TGREDCO) as nodal agency for retrofitment of existing autos as electric three seater auto rickshaws in 2022.

The government had also introduced a 100% exemption on road tax and registration fees for electric auto rickshaws until December 31, 2026. It has been providing retrofitment incentives at 15% of retro-fitment cost capped at `15,000 per vehicle to retrofit an old auto into an EV, which costs around `75,000 to `90,000.

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