Kerala budget 2026: Auto stands to become smart hubs, big push for electric autorickshawas
Kerala budget 2026: Auto stands to become smart hubs,big push for electric autorickshawas
KN Balagopal ,Kerala FM


Thiruvananthapuram , 29 Jan (H.S.): In a major boost to autorickshaw workers and sustainable urban mobility, the Kerala government has announced an ambitious plan to transform auto stands across the State into smart micro hubs, while simultaneously incentivising a shift to electric autorickshaws. Finance Minister K. N. Balagopal unveiled the initiative during his Budget speech, underlining the government’s commitment to protecting the livelihoods of autorickshaw workers who form the backbone of the public transport system.

Acknowledging the severe challenges faced by the sector due to rising fuel prices and central government policies, the Minister said the State would roll out a set of welfare and green mobility measures to support autorickshaw workers. As part of the transition to clean energy, owners who scrap old petrol or diesel autorickshaws and purchase new electric autos will receive a one-time scrappage incentive of ₹40,000.

To further ease the financial burden of switching to electric vehicles, the government will provide a two per cent interest subsidy on loans taken from select public sector banks for the purchase of electric autorickshaws. An allocation of ₹20 crore has been earmarked for the implementation of these schemes, the Finance Minister announced.

The move is aimed not only at supporting workers in the unorganised transport sector but also at reducing pollution and promoting the adoption of green energy across Kerala. Encouraging the use of eco-friendly autorickshaws, the Budget proposals are expected to significantly benefit drivers who are keen to move away from conventional fuel-powered vehicles and adopt electric alternatives.

In another major announcement, the government said it plans to upgrade around 5,000 informal autorickshaw stands across Kerala into smart micro hubs. These upgraded stands will be designed as worker-friendly spaces, tailored to local requirements, and equipped with modern amenities.

Each smart auto stand will feature facilities such as solar-powered charging units for electric autorickshaws, providing both convenience and sustainability. The project aims to improve working conditions for drivers while integrating clean energy solutions into everyday transport infrastructure. A separate allocation of ₹20 crore has been set aside for the development of these smart micro hubs.

Together, the initiatives signal a decisive shift towards cleaner transport, improved urban infrastructure, and stronger social protection for autorickshaw workers, reinforcing Kerala’s broader vision of inclusive and environmentally responsible development.

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Hindusthan Samachar / Arun Lakshman


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