Kerala Budget sees push for electric autos: ₹40,000 incentive; over 5,000 stands to become smart

The Kerala government has rolled out a new package of measures in the 2026–27 State Budget aimed at safeguarding autorickshaws, improving worker welfare and accelerating the shift to electric mobility across the state.

Finance Minister K N Balagopal announced financial incentives for drivers to move away from petrol and diesel autorickshaws, alongside major infrastructure upgrades targeting thousands of auto stands.

₹40,000 scrappage bonus for switching to electric autos

Under the new scheme, autorickshaw owners who scrap petrol or diesel vehicles and purchase electric models will receive a one-time scrappage incentive of ₹40,000.

To further ease the transition, drivers taking loans from public sector banks to buy electric autorickshaws will be eligible for a two per cent interest subsidy, reducing borrowing costs.

The budget has earmarked ₹20 crore to fund both the scrappage bonus and the interest subsidy for electric autorickshaw purchases.

Over 5,000 auto stands to become smart micro hubs

The government also plans to upgrade more than 5,000 autorickshaw stands across Kerala into smart micro hubs.

Each site will be developed as a worker-friendly smart auto stand with essential facilities, including solar-based electric vehicle charging systems.

An additional ₹20 crore has been allocated for setting up these smart micro hubs and installing electric charging infrastructure statewide.