The Union Ministry of Finance has directed the ministries and government departments to make electric vehicles the default and preferred choice when ot comes to purchasing staff cars. Also, the ministry has revised the net dealer price ceiling of ₹20 lakh, as compared to ₹10 lakh allotted for petrol, diesel and hybrid vehicles.
The Ministry of Finance has said that to promote electric mobility, reduce dependence on fossil fuels, and account for prevailing market prices and vehicle lifecycle costs, it is revising the Net Dealer Price (NDP) ceiling for procuring electric vehicles and internal combustion engine (ICE) powered vehicles. Previously, in 2022, the guidelines regarding procurement and hiring of cars by the ministries and government departments had fixed the NDP ceiling at ₹6 lakh.
PTI reported that in an office memorandum dated November 10, the Expenditure Department said going forward, ministries and departments shall ordinarily procure electric vehicles at the time of condemnation or replacement of their existing ICE staff cars. “EVs shall be the default and preferred choice for procurement,” it said.
In cases where a ministry or department considers that procurement or deployment of EVs is not practical and proposes to procure an ICE vehicle, a duly justified proposal would have to be sent 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/Department and concurrence of the Financial Adviser,” it added.
The Ministry of Finance also said that all ministries and departments will continue to adhere to the 2022 instructions mandating the hiring of electrc vehicles.
The Ministry of Finance’s instructions come in the backdrop of the government’s efforts to accelerate the adoption of electric vehicles as part of its broader push towards cleaner mobility, energy security and reduction of carbon emissions. The policy approach combines financial incentives, promotion of domestic manufacturing of electric vehicles, development of charging infrastructure and measures to encourage greater consumer and institutional adoption.
