Telangana announces tax waivers, incentives to phase out 49L ageing vehicles

Hyderabad: Telangana government has announced tax exemptions and incentives to phase out ageing vehicles and curb pollution.

Data reveals there are nearly 49 lakh vehicles in Telangana older than 15 years. These include about 16 lakh in Hyderabad alone.

Scrappage policy in force since September 2024

Transport Minister Ponnam Prabhakar informed the Legislative Council that the scrappage policy has been under implementation since September 2024 and is yielding results. The initiative focuses on removing old, unfit vehicles while promoting cleaner and newer alternatives.

Three scrapping centres operational

The state currently has three Registered Vehicle Scrapping Facilities (RVSFs):

Kothur in Rangareddy district

Vargal in Siddipet district

Pashamylaram in Sangareddy district

These centres are facilitating systematic dismantling and recycling of end-of-life vehicles.

Tax waivers, incentives to boost participation

To encourage voluntary scrapping, the government is offering several benefits:

Waiver of pending vehicle tax liabilities

Tax concessions on the purchase of new vehicles

Incentives include:

Up to ₹5,000 for two-wheelers

Up to ₹50,000 for cars

Up to 19% tax exemption for transport vehicles

Over 6,200 vehicles scrapped so far

Since the policy rollout, 6,278 vehicles have been scrapped across the state. Of these, 4,285 were government vehicles cleared in the past year, while nearly 2,000 belonged to private owners.

Scrapping has been made mandatory for government vehicles older than 15 years. However, private vehicles can continue if deemed roadworthy, subject to registration renewal.

Crackdown on old and unsafe vehicles

Authorities are conducting regular special drives to identify unfit vehicles. School buses older than 15 years are not allowed to operate under any circumstances.

The Telangana State Road Transport Corporation (TSRTC) is also phasing out buses older than 15 years and replacing them with new ones.

Green tax collections on the rise

The state has seen a steady increase in Green Tax collections:

₹71.14 crore in 2025–26 from nearly 2 lakh vehicles

₹68.11 crore in 2024–25

The Green Tax, first introduced in 2006 and revised in 2022, is aimed at discouraging the use of older, polluting vehicles.

Push for electric vehicles gains momentum

The government is also stepping up efforts to promote electric vehicles (EVs). Proposals include offering loans to public representatives, such as MLAs and MLCs, to purchase EVs.

Additionally, automobile companies are offering 15–20% discounts for government employees under the EV policy to encourage a shift towards cleaner mobility.

Transport sector reforms underway

The minister said the transport department is rolling out multiple reforms to modernize the sector, while also questioning the delay in introducing a scrappage policy over the past decade.

The government believes the policy will play a crucial role in reducing pollution, improving road safety, and accelerating the transition to sustainable transport in Telangana, he added.