SRINAGAR: The Union Finance Ministry has made electric vehicles (EVs) the default and preferred choice for procurement of staff cars by Central Government ministries and departments, while doubling the maximum permitted vehicle price to Rs 20 lakh.
Under revised guidelines issued by the Department of Expenditure on November 10, the net dealer price (NDP) ceiling for electric staff cars has been raised to Rs 20 lakh, while the limit for petrol, diesel and hybrid vehicles has been fixed at Rs 10 lakh.
The revised instructions, which came into immediate effect, require ministries and departments to ordinarily procure electric vehicles whenever their existing internal combustion engine (ICE) staff cars are condemned or due for replacement.
The department said the changes were aimed at promoting electric mobility, reducing dependence on fossil fuels and taking into account prevailing market prices and the lifecycle costs of vehicles.
The revised guidelines modify the earlier Office Memorandum issued on September 1, 2022, governing the procurement and hiring of vehicles by Central Government ministries and departments.
Under the new provisions, any ministry or department seeking to procure a petrol, diesel or hybrid vehicle on the grounds that an electric vehicle is not practical will have to submit a justified proposal to the Department of Expenditure for relaxation on a case-by-case basis.
Such proposals will require the approval of the Secretary of the concerned Administrative Ministry or Department and the concurrence of its Financial Adviser.
The revised instructions also retain the existing mandate for ministries and departments to hire electric vehicles. Where hiring an ICE vehicle is considered necessary, departments will similarly have to seek case-specific relaxation from the Department of Expenditure with the required approvals.
The Finance Ministry said all other provisions governing entitlement, procurement and hiring of staff cars under the September 2022 memorandum and subsequent instructions would remain unchanged.
Procurement will continue to be governed by the General Financial Rules (GFR), 2017, as amended from time to time.
