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Centre widens EV push for staff cars, lifts procurement cap to ₹20 lakh

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Centre widens EV push for staff cars, lifts procurement cap to ₹20 lakh

Centre widens EV push for staff cars, lifts procurement cap to ₹20 lakh

The Centre has made electric vehicles the default choice for government staff cars and raised the procurement ceiling to ₹20 lakh. While petrol, diesel and hybrid cars remain allowed in exceptional cases, ministries will now need formal approval to buy them, reinforcing the government’s push for cleaner official fleets.

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The Centre has tightened the policy nudge towards cleaner official transport, making electric vehicles the default option for government staff cars and lifting the price ceiling for such purchases to ₹20 lakh. The change, issued through an Office Memorandum from the Department of Expenditure , comes as ministries face pressure to align fleet decisions with India’s broader electric mobility push.

According to The Hindu BusinessLine , the revised instructions require central ministries and departments to prefer EVs whenever they replace conventional staff cars. The memorandum also draws a sharper line between electric and internal combustion engine vehicles by allowing a much higher procurement ceiling for the former while keeping petrol, diesel and hybrid cars capped at ₹10 lakh.

The most significant shift in the new rules is procedural as much as financial. EVs are no longer just an acceptable option for government offices looking to replace staff cars. They are now the default and preferred choice for procurement, signalling that the administration wants cleaner vehicles to become the standard rather than the exception.


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