HYDERABAD: Transport and BC Welfare Minister Ponnam Prabhakar on Saturday said the government had to forego a revenue of about Rs 925 crore due to the promotion of electric vehicles (EVs). “Despite losing revenue, the government is promoting the use of EVs by exempting taxes,” he said.
Replying to a discussion on demands for grants for the Transport, BC Welfare and Home departments in the Assembly, the minister said the state had registered a total of 1,15,551 EVs, with tax exemptions amounting to Rs 925.94 crore. He noted that the share of EVs had increased steadily from 0.60% in 2023 to 1.50% by 2026, reflecting growing consumer adoption.
He said that despite short-term revenue pressures, the government was focusing on long-term benefits such as reduced pollution, lower fuel dependency and sustainable urban mobility. He added that the EV policy, introduced to promote environmentally friendly transportation, offers 100% tax exemption on electric vehicles until December 31, 2026, significantly reducing costs for consumers and accelerating adoption.
The minister said that revenue in 2024–25, compared to 2023–24, had declined due to a slowdown in vehicle sales across the state, attributed to inflation, stringent emission norms and reduced manufacture of diesel vehicles.
According to him, the government allocated Rs 4,305.49 crore to TGSRTC. The corporation currently operates over 10,000 buses across 97 depots, covering 35.19 lakh km daily and serving over 62 lakh passengers with a 98% occupancy rate. He added that the free bus travel scheme for women had significantly boosted ridership, increasing daily passengers by 33%. “Women now constitute nearly 68% of passengers. The scheme has enabled 286 crore free journeys, saving women nearly Rs 9,871 crore in travel costs,” he said.
He informed the House that RTC’s cumulative losses since 2014 stood at Rs 12,750 crore, while operational profits of Rs 954.86 crore had been recorded till February 2026. He added that a proposal to merge RTC with the government was under consideration by an official committee.