The Finance Ministry has asked ministries and departments to make electric vehicles (EVs) their “default and preferred choice” for staff cars, and set a price cap of ₹20 lakh for procurement of such vehicles.
In cases where a Ministry/Department considers that procurement or deployment ofEVs 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. In an office memorandum dated November 10, the Expenditure Department said going forward, Ministries/Departments shall ordinarily procure Electric Vehicles (EVs) at the time of condemnation/ replacement of their existing ICE staff cars. The Finance Ministry also said that all Ministries/ Departments will continue to adhere to the 2022 instructions mandating the hiring of EVs.
The Finance Ministry 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 EVs and Internal Combustion Engine (ICE) vehicles. “EVs shall be the default and preferred choice for procurement,” it said. “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.
