Finance Ministry pushes electric vehicles for government fleet purchases

The Finance Ministry has restructured vehicle procurement guidelines for government employees, establishing differentiated price caps that favour electric vehicles over conventional combustion-engine cars. Under the revised framework, officials can purchase electric vehicles up to a limit of ₹20 lakh, while petrol and diesel cars remain capped at ₹10 lakh.

The higher ceiling for EVs effectively makes electric vehicles the default choice for government staff purchasing decisions, aligning procurement policy with India's broader climate and clean energy objectives. The measure reflects growing government commitment to reducing carbon emissions within its own operations and potentially shifting market demand toward sustainable transport options.

The Finance Ministry has also updated procurement rules for information technology equipment, raising purchase limits for domestically manufactured devices. The revised caps provide enhanced financial allocations for Make-in-India laptops and computing devices, supporting the government's objective to boost local technology manufacturing and reduce import dependence.

The dual policy shift—toward electric vehicles and domestic technology products—signals the government's intention to use its substantial procurement power to influence market trends and support broader economic and environmental policy goals. These guidelines will apply to vehicle and technology purchases made by government departments and their employees across the country.