Govt Staff Cars To Go Electric As Finance Ministry Issues New EV Procurement Rules

New Delhi, Nov 11: The Finance Ministry has issued a notification making electric vehicles (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 force with immediate effect.

The notification issued by the Finance Ministry’s Department of Expenditure has doubled the net dealer price ceiling for the procurement of EVs by central government ministries and departments to Rs 20 lakh, while that for ICE vehicles, including petrol, diesel and hybrid cars, has been fixed at Rs 10 lakh.

The order, which also mandates preference for EVs in hiring cars for government use, has been issued with a view to promoting electric mobility, reducing dependence on fossil fuels, and taking into account the prevailing market prices and lifecycle costs of vehicles.

EVs Made Default Procurement Choice

“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 states.

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 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 states.

EV Hiring Rules To Continue

According to the order, all Ministries and Departments will also continue to adhere to the instructions issued by the Department of Expenditure, dated September 1, 2022, mandating the hiring of electric vehicles.

The order also states that in cases where hiring of ICE vehicles is considered necessary, a proposal, duly justified, shall be referred to the Department of Expenditure for relaxation on a case-to-case basis, with the approval of the Secretary of the Administrative Ministry or Department and concurrence of the Financial Adviser.

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Existing Procurement Conditions Remain Unchanged

All other terms and conditions governing entitlement, procurement and hiring of cars, as prescribed in the office memorandum dated September 1, 2022, and subsequent instructions, shall remain unchanged. Procurement shall continue to be governed by the provisions of the General Financial Rules (GFR), 2017, as amended from time to time, the order added.

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