New Delhi. The central government has made a major change in the rules for purchasing government cars for its employees and officers. Under the new decision, now government departments will be able to spend up to Rs 20 lakh on purchasing electric cars. Whereas for cars running on petrol and diesel, the maximum budget has been fixed at Rs 10 lakh. That means, up to double the price has been allowed for the purchase of electric vehicles.
The Department of Expenditure of the Finance Ministry has issued a new office memorandum in this regard on 10 November 2026. The new instructions have been implemented with immediate effect. The aim of the government is to increase the use of electric vehicles in the public transport system and reduce the expenditure on fuel.
Priority will be given to buying electric car
According to the new rules, ministries and government departments will have to give priority to electric vehicles while purchasing new staff cars. For this, a maximum net dealer price of Rs 20 lakh has been fixed. On the other hand, the price of petrol and diesel cars will not exceed Rs 10 lakh.
Approval will have to be taken to buy petrol-diesel car
If any government department feels that electric car is not suitable for its functioning, it can propose to purchase petrol or diesel vehicles. However, for this, proper reason will have to be given and special exemption will have to be obtained from the Department of Expenditure. The proposal will also require the approval of the Secretary of the concerned Ministry and the consent of the Financial Advisor.
This new rule will also apply to rental vehicles
The government has also tightened the rules regarding renting of petrol and diesel cars. Any ministry or department will also have to take permission from the Expenditure Department to hire such a vehicle. For this, the concerned department will have to submit a proposal with reasons.
Use of electric vehicles will increase in government transport
With this decision of the government, the demand for electric cars in government departments is expected to increase. However, other rules related to purchase and rental of vehicles will remain applicable as before. Departments have to follow the General Financial Rules (GFR), 2017. Through this change, the Central Government wants to gradually move government transport towards electric vehicles, so that dependence on petrol and diesel can be reduced and clean transport can be promoted.