Business · India Bureau
Finance Ministry pushes electric vehicles as priority for government fleet purchases
India's Finance Ministry has directed all central government departments to prioritise electric vehicles when procuring staff cars, signalling a major shift in official transport policy. The directive requires departmental proposals to secure approval from administrative secretaries and financial advisers.
LSN India ·
The Finance Ministry has issued guidelines instructing all central government ministries and departments to adopt electric vehicles as their default choice for official car purchases. The move reflects New Delhi's broader commitment to reducing carbon emissions and promoting clean energy adoption across the public sector.
Under the new framework, any proposal for vehicle procurement must be routed through the respective ministry or department's administrative secretary for approval, alongside the concurrence of the Financial Adviser. This multi-level clearance mechanism ensures that EV adoption decisions undergo scrutiny and align with budgetary considerations.
The directive represents a significant policy intervention aimed at scaling India's electric vehicle ecosystem. By leveraging government procurement as a demand driver, the Finance Ministry is seeking to encourage EV adoption while potentially supporting domestic electric vehicle manufacturers and charging infrastructure development.
The guidelines apply to all central government entities and mark a departure from traditional practices that have favoured conventional fuel-powered vehicles for official fleets. Implementation of the directive will require coordination between administrative, financial, and procurement wings across government departments.