The Centre on Tuesday has revised the purchase price limits for staff cars, capping the net dealer price of electric vehicles (EVs) at Rs 20 lakh and that of internal combustion engine (ICE) vehicles at Rs 10 lakh. The lower ceiling covers petrol, diesel and hybrid models. The revised instructions take effect immediately, according to an office memorandum.
Central ministries and departments will ordinarily buy EVs when they retire or replace their existing ICE staff cars. The memorandum makes EVs the default choice for such purchases and allows ministries and departments to seek an exception if they consider buying or deploying an electric vehicle impractical.
A ministry or department seeking to buy an ICE staff car must submit a proposal to the Department of Expenditure explaining why it needs an exception. The proposal may be referred with the approval of the secretary of the administrative ministry or department and the concurrence of its financial adviser. The Department of Expenditure will consider requests for relaxation on a case-by-case basis.
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For hired vehicles, ministries and departments must continue to follow the Department of Expenditure's September 2022 instructions mandating the hiring of EVs. A ministry or department that considers it necessary to hire an ICE vehicle must submit a justified proposal to the Department of Expenditure. The proposal requires approval from the administrative secretary and concurrence from the financial adviser. The department will consider each hiring exception individually, according to the office memorandum.
The September 2022 memorandum and subsequent instructions will continue to govern staff car entitlement and other terms for buying and hiring vehicles. Ministries and departments must also follow the General Financial Rules, 2017, as amended from time to time, when procuring staff cars. The memorandum says the revised instructions were issued with the approval of the expenditure secretary.
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