Govt makes EVs default choice for staff vehicles, doubles net dealer price ceiling to ₹20 lakh

The finance ministry has made electric vehicles the default choice for procurement of staff cars by central government ministries and departments, doubling the price ceiling for their purchase to ₹20 lakh.

In an office memorandum issued on November 10, the Department of Expenditure said ministries and departments should ordinarily procure electric vehicles (EVs) when replacing their existing petrol, diesel or hybrid staff cars.

“Going forward, Ministries/Departments shall ordinarily procure Electric Vehicles (EVS) at the time of condemnation/replacement of their existing ICE staff cars,” the memorandum stated. “EVs shall be the default and preferred choice for procurement.”

The net dealer price (NDP) ceiling for electric staff cars has been raised to ₹20 lakh from ₹10 lakh.

The ceiling for conventional internal combustion engine (ICE) vehicles, on the other hand, has been fixed at ₹10 lakh.

The revised guidelines, however, do not completely rule out the purchase of conventional vehicles.

“In cases where a Ministry/Department considers that procurement or deployment of EVS is not practical and proposes to procure an ICE vehicle, a proposal, duly justified, shall be referred to the Department of Expenditure for relaxation on a case-by-case basis,” the ministry said.

Such proposals will require the approval of the secretary of the administrative ministry or department and concurrence of the financial adviser.

The move is aimed at promoting electric mobility and reducing dependence on fossil fuels, the department said.

It has also retained the existing requirement for ministries and departments to hire electric vehicles.

Any proposal to hire conventional vehicles will similarly require a justified request to the Department of Expenditure and approval at the secretary level, along with concurrence of the financial adviser.