Finance Ministry Sets ₹20 Lakh Cap for Government EV Procurement
· Automobile · Hindustan Times, Car and Driver
The Finance Ministry has made electric vehicles the default choice for government staff cars and set a ₹20 lakh price cap for their procurement, double the ₹10 lakh limit for petrol and diesel vehicles. This revision replaces the 2022 ceiling of ₹6 lakh and aims to cut fossil fuel dependence while accounting for EV lifecycle costs. Ministries must justify any ICE vehicle procurement through the Department of Expenditure with approval from the Secretary and Financial Adviser. The policy supports the government's broader push for clean mobility, domestic EV manufacturing, and charging infrastructure development.
Why it matters
Government employees will now predominantly use EVs for official transport, reducing fuel costs and emissions while boosting domestic electric vehicle demand.
Read the original report — Hindustan Times
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