The Ministry of Finance has made electric vehicles (EVs) the default choice for staff cars purchased by central government ministries and departments, while doubling the maximum purchase price ceiling for electric cars to ₹20 lakh. The revised guidelines, which came into immediate effect on November 10, 2026, aim to accelerate electric mobility across government offices and reduce dependence on fossil fuels.
The revised instructions also increase the price ceiling for conventional vehicles to ₹10 lakh, compared with the earlier limit of ₹10 lakh for staff car procurement.
The ministry said the revision takes into account prevailing vehicle prices and their lifecycle costs, alongside the need to promote electric mobility and reduce dependence on fossil fuels.
Exceptions for conventional cars
Such proposals must be:
- Supported by proper justification explaining why an EV cannot be procured or deployed
- Approved by the Secretary of the concerned administrative ministry or department
- Cleared by the Financial Adviser of the ministry or department
The proposals will then be referred to the Department of Expenditure for relaxation on a case-by-case basis.
Existing EV hiring rules remain
The finance ministry has clarified that the existing September 1, 2022, instructions mandating the hiring of electric vehicles by government ministries and departments will continue to apply.
The latest memorandum also states that other rules governing staff car entitlements, procurement and hiring remain unchanged. Vehicle purchases will continue to be governed by the General Financial Rules (GFR), 2017, and subsequent amendments.
The revised instructions came into force with immediate effect from November 10, 2026, following approval from the Secretary of the Department of Expenditure.
