FinMin asks ministries to make EVs the default and preferred choice for staff car purchases
To promote electric mobility, reduce dependence on fossil fuels, and account for prevailing market prices and vehicle lifecycle costs, the Finance Ministry is revising the net dealer price ceiling for procuring EVs and internal combustion engine vehicles.
The Finance Ministry has instructed ministries and departments to make electric vehicles (EVs) the default choice for procuring staff cars, with a procurement price cap of Rs 20 lakh. This decision aims to promote electric mobility, reduce dependence on fossil fuels, and account for market prices and vehicle lifecycle costs. The NDP ceiling for EVs is set at Rs 20 lakh, which is double the Rs 10 lakh limit for internal combustion engine (ICE) vehicles.
The 2022 procurement guidelines previously fixed the NDP ceiling at Rs 6 lakh. Going forward, ministries and departments will ordinarily procure EVs when replacing existing ICE staff cars. If a ministry or department believes procuring an ICE vehicle is practical, a justified proposal must be submitted to the Department of Expenditure for possible relaxation on a case-by-case basis.
The Finance Ministry's instructions align with the government's efforts to accelerate electric vehicle adoption as part of its clean mobility, energy security, and carbon emission reduction initiatives.
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