The central government has changed the rules for buying cars for employees and officers. A new limit has been set on cars purchased for the use of officers and employees in central departments and ministries. Now government departments will be able to spend up to Rs 20 lakh to buy an electric car, while the maximum price for buying petrol and diesel cars has been fixed at Rs 10 lakh. It is clear that double the budget has been allowed for electric cars.
The Department of Expenditure of the Finance Ministry has issued an office memorandum in this regard on 10 November 2026. Its objective is to promote electric mobility in government vehicles and reduce dependence on petrol and diesel. The new instructions have been implemented with immediate effect.
What is the new price limit for government cars?
The Finance Ministry has fixed the maximum limit of Net Dealer Price (NDP) for the purchase of government staff cars. Under this, cars have been divided into two categories.
- Electric Car (EV): Maximum Rs 20 lakh.
- Petrol-Diesel Car (ICE): Maximum Rs 10 lakh.
NDP i.e. Net Dealer Price is the price on the basis of which the limit for purchase of a car has been fixed.
According to the new rule, government ministries and departments can spend up to twice the price to buy an electric car as compared to a petrol-diesel car.
Problems with EV: You can buy a petrol-diesel car, but…
The Finance Ministry has clarified that when ministries and departments replace their existing staff cars or buy new cars, they will generally give preference to electric vehicles. This means that EVs will be the preferred option in the purchase of government cars.
However, if any department feels that buying or using an electric car is not practical, then it can propose to buy petrol-diesel cars. But for this the department will have to give proper reasons and take special exemption from the expenditure department.
Such proposals will be considered on a case-by-case basis. For this, the approval of the Secretary of the concerned administrative ministry and the consent of the financial advisor will be required.
Exemption is also necessary for taking petrol-diesel car on rent.
The new rules are not limited to the purchase of government cars only. If any ministry or department needs to hire a petrol-diesel car, then for this also exemption will have to be taken from the Expenditure Department.
The department will have to send a proposal for this with proper reasons. This means that in case of buying petrol and diesel cars for government use as well as taking them on rent, now the rules will have to be followed.
Rest of the rules will remain applicable as before
The Finance Ministry has clarified that there has been no change in the remaining rules related to purchase, rental and other conditions of cars. Government departments will have to follow the General Financial Rules (GFR), 2017 and other instructions issued from time to time.
With this decision, the share of electric cars in the purchase of government vehicles is expected to increase. The government’s emphasis is not limited to just buying electric cars, but is also on reducing dependence on petrol and diesel in government transport.
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Source: ndtv.in
