New Delhi, November 11, 2026 (Yes Punjab News)
The Finance Ministry has made electric vehicles (EVs) the default and preferred choice for the procurement of government staff cars across all Central ministries and departments. The order has come into immediate effect.
Under the notification issued by the Department of Expenditure, the net dealer price ceiling for EV procurement has been doubled to Rs 20 lakh. The ceiling for internal combustion engine (ICE) vehicles, including petrol, diesel and hybrid cars, has been fixed at Rs 10 lakh.
“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 order states.
Ministries and departments seeking to procure ICE vehicles on grounds of impracticality must submit a duly justified proposal to the Department of Expenditure for case-by-case relaxation. Such proposals require approval from the Secretary of the administrative ministry or department and concurrence of the Financial Adviser.
The order also reiterates the requirement to prioritise electric vehicles when hiring cars for government use, in line with instructions issued on September 1, 2022. Any proposal to hire ICE vehicles will also require a justified request for relaxation through the prescribed approval process.
All other conditions governing entitlement, procurement and hiring of cars under the September 1, 2022 office memorandum and subsequent instructions will remain unchanged. Procurement will continue to follow the General Financial Rules (GFR), 2017, as amended from time to time.
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