The Centre has issued a notification making EVs the default and preferred choice for the procurement of government staff cars in all ministries and departments of the Centre, with the order coming into effect immediately. The notification issued by the Finance Ministry’s Department of Expenditure has doubled the net dealer price ceiling for the procurement of vehicles by the central government ministries and departments to Rs 20 lakh, while the ceiling for ICE vehicles, including petrol, diesel and hybrid cars, has been fixed at Rs 10 lakh.
The order, which also mandates the preference for EVs in hiring cars for government use, has been issued with an aim to promote electric mobility, reduce dependence on fossil fuels and take into account the prevailing market prices and the cost of crude oil.
“Going forward, Ministries and Departments shall ordinarily procure Electric Vehicles (EVs) at the time of condemnation or replacement of their existing ICE staff cars. EVs shall be the default and preferred choice for procurement,” the office order stated.
In case a ministry or department considers that the procurement or deployment of EVs is not practical and proposes to procure an ICE vehicle instead, a proposal duly justified shall be referred to the Department of Expenditure for relaxation on a case-by-case basis. Such a proposal may be referred with the approval of the Secretary of the administrative ministry or department and concurrence of the Financial Adviser, the order further stated.
According to the order, all ministries and departments will adhere to the instructions by the Department of Expenditure dated September 1, 2022, mandating the hiring of electric vehicles. The procurement shall be governed by the provisions of the General Financial Rules 2017, as amended from time to time, the order added.