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Finance Ministry Makes EVs Preferred Choice for Government Cars, Sets ₹20 Lakh Cap
The ministry raised the EV procurement ceiling to Rs 20 lakh and kept ICE vehicle purchases subject to case-by-case approval.
- In an Office Memorandum issued yesterday, The Union Finance Ministry mandated that EVs serve as the default choice for government staff cars, capping procurement prices at ₹20 lakh.
- This directive supports the Government push toward clean mobility and energy security, aiming to reduce carbon emissions and minimize fossil fuel dependence as part of broader clean mobility efforts.
- Revised guidelines set the Net Dealer Price ceiling for EVs at ₹20 lakh, doubling the ₹10 lakh limit designated for Internal Combustion Engine vehicles under previous rules.
- Departments seeking to procure ICE vehicles must obtain approval from the Expenditure Department, the Administrative Ministry Secretary, and the Financial Adviser upon demonstrating practical necessity.
- Government entities will continue adhering to 2022 instructions mandating the hiring of EVs, as Ministries replace existing staff cars when they are condemned or due for replacement.
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Finance Ministry makes EVs default choice for govt staff cars, doubles purchase price ceiling to Rs 20 lakh - The Tribune
The Ministry of Finance has made electric vehicles (EVs) the default choice for government staff cars and raised the purchase price ceiling for such vehicles to Rs 20 lakh, compared with Rs 10 lakh for petrol, diesel and hybrid vehicles.
·Chandigarh, India
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Govt makes EVs default choice for staff cars, sets ₹20 lakh procurement cap
Government departments should ordinarily replace retiring staff cars with EVs under revised procurement rules. The move supports India’s climate and energy goals, though EVs made up just 0.63% of government vehicles in 2022.
·New Delhi, India
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Total News Sources15
Leaning Left1Leaning Right3Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 17%
C 33%
R 50%
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