New Delhi: The Ministry of Finance has made electric vehicles (EVs) the preferred option for government staff cars and doubled their procurement price ceiling to Rs 20 lakh, while retaining the Rs 10 lakh limit for petrol, diesel and hybrid vehicles, ANI reported.
According to an Office Memorandum issued by the Department of Expenditure on Tuesday, all central government ministries and departments must give priority to electric vehicles while replacing their existing conventional staff cars.
The revised guidelines explicitly state that EVs will be the default and preferred choice for government vehicle procurement. The Net Dealer Price (NDP) ceiling has been fixed at Rs 20 lakh for electric cars, compared with Rs 10 lakh for internal combustion engine (ICE) vehicles, including petrol, diesel and hybrid models.
The Finance Ministry said the changes aim to accelerate electric mobility, reduce dependence on fossil fuels and reflect prevailing vehicle prices as well as the overall cost of ownership and operation over a vehicle’s lifetime.
However, the revised policy does not completely rule out the purchase of conventional vehicles. Ministries and departments can seek permission to procure petrol, diesel or hybrid cars if electric vehicles are found unsuitable for their operational requirements.
Such requests must be accompanied by proper justification and submitted to the Department of Expenditure for case-by-case approval. The proposals must also receive clearance from the Secretary of the concerned ministry or department, along with the concurrence of its Financial Adviser.
The department clarified that its September 1, 2022, instructions requiring government departments to hire electric vehicles will continue to remain applicable. Departments seeking to hire conventional vehicles will also have to follow the same approval procedure.
The latest memorandum partially revises the September 2022 guidelines governing the procurement and hiring of government staff cars. All other provisions concerning vehicle eligibility, procurement and hiring will remain unchanged.
The ministry also stated that purchases would continue to be governed by the General Financial Rules, 2017. The revised instructions have come into effect immediately, according to ANI.
