Bhubaneswar, Apr 29: The Odisha Finance Department has initiated strict action against officials who allegedly disbursed unauthorized advances to government employees for purchasing electric vehicles (E-vehicles or EV) beyond the stipulated deadline.

Under the Odisha E-Vehicle Policy 2021, government employees were allowed to avail interest-free advances to encourage adoption of eco-friendly transport.

This facility, however, was officially discontinued after March 31, 2026, following a notification issued by the Finance Department. Despite this, several departmental officers reportedly continued sanctioning large sums of money to employees for buying E-vehicles, violating government rules.

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Finance Department Principal Secretary Sanjeeb Kumar Mishra has written to all departmental secretaries directing recovery of such advances along with interest.

The letter specifies that employees who received advances illegally must repay the principal amount plus 12.5% annual interest. Additionally, disciplinary action has been ordered against officials who approved and released these funds in violation of the government’s directive.

According to official records, thousands of employees had benefited from the scheme during its valid period, which was extended multiple times to promote E-vehicle usage across the state. However, the continuation of advances beyond the cut-off date has now triggered scrutiny.

This development is expected to impact several departments where advances were disbursed after the deadline. Employees who availed the facility illegally will now face repayment obligations, while officers responsible for sanctioning the advances could face departmental proceedings.

About Odisha Electric Vehicle Policy 2021

The policy was introduced to accelerate the adoption of eco-friendly transport across the state. Launched on September 1, 2021, the policy set an ambitious target of achieving 20% electric vehicle (EV) penetration by 2025.

It offered a range of incentives, including subsidies for two-wheelers, three-wheelers, and four-wheelers, alongside support for manufacturers and charging infrastructure developers.

With the extension, the policy ensures 15% subsidies on EV purchases and promotes charging stations through special incentives.

The policy aimed to reduce vehicular pollution, promote sustainable mobility, and generate employment through local EV production.  Initially valid until August 2025, the scheme was later extended until March 31, 2026. The policy, originally meant for a shorter term, is now in force until June 30, 2026.

Initially, government employees were also allowed to avail interest-free advances to purchase EVs, encouraging wider adoption. This facility, however, was officially discontinued after March 31, 2026, following a notification issued by the Finance Department.