New Delhi, November 11, 2026: The Central Government has made electric vehicles (EVs) the default and preferred choice for procuring official cars across all Union ministries and departments. The Finance Ministry has issued a fresh notification directing government departments to prioritise electric vehicles while replacing their existing staff cars, with the order coming into immediate effect.
According to the notification issued by the Department of Expenditure under the Ministry of Finance, the maximum net dealer price ceiling for procuring electric vehicles has been doubled from the earlier limit to ₹20 lakh. In comparison, the price ceiling for internal combustion engine (ICE) vehicles, including petrol, diesel and hybrid cars, has been fixed at ₹10 lakh.
The decision aims to accelerate electric mobility, reduce dependence on fossil fuels and promote environmentally sustainable transportation across government departments.
EVs to Be First Preference for Government Procurement
The Finance Ministry’s order clearly states that ministries and departments should ordinarily procure electric vehicles whenever their existing internal combustion engine (ICE) staff cars are condemned or replaced.
“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 notification stated.
The directive is expected to increase the adoption of electric cars across central government offices and encourage the transition towards cleaner transportation.
Government Departments Need Approval to Purchase Petrol and Diesel Cars
The new guidelines also specify conditions under which government departments can purchase conventional petrol, diesel or hybrid vehicles.
If a ministry or department believes that procuring or deploying an electric vehicle is not practical, it must submit a properly justified proposal to the Department of Expenditure seeking an exemption.
Such proposals will require approval from the Secretary of the concerned administrative ministry or department, along with the concurrence of the Financial Adviser. The Department of Expenditure will examine these requests on a case-by-case basis.
Electric Vehicles to Get Preference in Hiring Too
The Finance Ministry has also reiterated its earlier instructions regarding the hiring of electric vehicles for official government use.
All ministries and departments must continue to follow the guidelines issued by the Department of Expenditure on September 1, 2022, which mandated preference for hiring electric vehicles.
If hiring conventional ICE vehicles becomes necessary, departments must submit a justified proposal to the Department of Expenditure for relaxation.
Such requests will also require approval from the concerned departmental Secretary and concurrence of the Financial Adviser.
Existing Procurement Rules to Continue
The Finance Ministry clarified that all other terms and conditions relating to vehicle entitlement, procurement and hiring will remain unchanged.
Government departments must continue to follow the provisions of the General Financial Rules (GFR), 2017, as amended from time to time, along with the existing instructions issued by the Department of Expenditure.
Push Towards Green Mobility
The latest decision marks another significant step in the Centre’s efforts to promote electric mobility and reduce carbon emissions.
By making EVs the default option for official vehicle procurement and increasing their permissible price ceiling to ₹20 lakh, the government aims to encourage wider adoption of electric vehicles within the public sector.
The move could also provide a boost to India’s electric vehicle industry by increasing institutional demand for electric cars and supporting the country’s transition towards cleaner and more sustainable transportation.
