India Makes EVs Default for Central Government Staff Cars

The Finance Ministry has made electric vehicles the default choice for central government ministries and departments replacing staff cars, setting a net dealer price ceiling of ₹20 lakh for EVs, twice the limit for petrol, diesel and hybrid vehicles.

A Department of Expenditure memorandum dated November 10 says ministries and departments should ordinarily procure an EV when an existing internal-combustion-engine staff car is condemned or replaced. The order also sets a ₹10 lakh ceiling for petrol, diesel and hybrid cars. It took effect immediately, according to reports describing the memorandum.

Departments proposing to buy an internal-combustion vehicle because an EV is impractical must submit a justified request to the Department of Expenditure for case-by-case relaxation. The request requires approval from the administrative ministry or department’s secretary and the concurrence of its Financial Adviser.

The memorandum also refers to existing instructions on hiring vehicles and says departments seeking to hire internal-combustion vehicles should request case-by-case relaxation. Those requests require the same approvals. The order describes earlier Department of Expenditure...