Finance Ministry makes electric vehicles default choice for government staff cars
·5 hours ago·3 min read
Key Points
The Union Finance Ministry has made EVs the default choice for central government staff cars and increased their purchase price ceiling to Rs 20 lakh. The revised guidelines aim to promote electric mobility, reduce fossil fuel dependence and encourage sustainable transportation across government departments.
Bhubaneswar, Nov 11: The Ministry of Finance has made electric vehicles (EVs) the default choice for government staff cars, raising the maximum purchase price limit for electric vehicles to Rs 20 lakh from the earlier ceiling of Rs 10 lakh.
Under the revised guidelines, central government ministries and departments will now be required to prioritise electric vehicles when replacing their existing conventional staff cars.
According to an Office Memorandum issued by the Department of Expenditure, electric vehicles will be the preferred option for government vehicle procurement.
"EVs shall be the default and preferred choice for procurement," the memorandum stated.
Under the revised guidelines, central government ministries and departments will now be required to prioritise electric vehicles when replacing their existing conventional staff cars.
According to an Office Memorandum issued by the Department of Expenditure, electric vehicles will be the preferred option for government vehicle procurement.
"EVs shall be the default and preferred choice for procurement," the memorandum stated.
📱 Get Argus News App
✨📰 60 Word News🎬 Argus Podcast📺 Live TV and Breaking News🔔 Free Notification Alerts
Download Free:
Under the new procurement rules, the Net Dealer Price (NDP) ceiling for electric staff cars has been fixed at Rs 20 lakh.
In comparison, the maximum purchase price limit for conventional Internal Combustion Engine (ICE) vehicles, including petrol, diesel and hybrid cars, will remain at Rs 10 lakh.
The Finance Ministry said the revised limits take into account prevailing market prices and the overall cost of operating vehicles throughout their lifespan. The move is aimed at accelerating electric mobility, reducing dependence on fossil fuels and promoting environmentally sustainable transportation within government departments.
Although electric vehicles have been made the preferred option, the government has not completely banned the purchase of conventional petrol, diesel or hybrid vehicles.
Ministries and departments can still seek permission to purchase conventional vehicles if electric vehicles are found unsuitable or impractical for their specific operational requirements.
However, such proposals must include proper justification and be submitted to the Department of Expenditure for approval on a case-by-case basis. The proposal must also receive approval from the Secretary of the concerned ministry or department, along with the concurrence of its Financial Adviser.
In comparison, the maximum purchase price limit for conventional Internal Combustion Engine (ICE) vehicles, including petrol, diesel and hybrid cars, will remain at Rs 10 lakh.
The Finance Ministry said the revised limits take into account prevailing market prices and the overall cost of operating vehicles throughout their lifespan. The move is aimed at accelerating electric mobility, reducing dependence on fossil fuels and promoting environmentally sustainable transportation within government departments.
Although electric vehicles have been made the preferred option, the government has not completely banned the purchase of conventional petrol, diesel or hybrid vehicles.
Ministries and departments can still seek permission to purchase conventional vehicles if electric vehicles are found unsuitable or impractical for their specific operational requirements.
However, such proposals must include proper justification and be submitted to the Department of Expenditure for approval on a case-by-case basis. The proposal must also receive approval from the Secretary of the concerned ministry or department, along with the concurrence of its Financial Adviser.
The Department of Expenditure has also clarified that the existing guidelines issued on September 1, 2022, regarding the hiring of electric vehicles by government departments will continue to remain in force.
Departments seeking permission to hire conventional petrol or diesel vehicles will also have to follow the prescribed approval procedure. The latest memorandum partially modifies the September 2022 guidelines governing the procurement and hiring of government staff cars.
The Finance Ministry has clarified that all other existing conditions relating to staff car entitlement, procurement and hiring will remain unchanged. Government departments will continue to follow the provisions of the General Financial Rules (GFR), 2017, while purchasing staff cars.
Departments seeking permission to hire conventional petrol or diesel vehicles will also have to follow the prescribed approval procedure. The latest memorandum partially modifies the September 2022 guidelines governing the procurement and hiring of government staff cars.
The Finance Ministry has clarified that all other existing conditions relating to staff car entitlement, procurement and hiring will remain unchanged. Government departments will continue to follow the provisions of the General Financial Rules (GFR), 2017, while purchasing staff cars.
Related Topics
Explore more stories