Bhubaneswar, June 1: In a major push towards sustainable mobility and energy conservation, the Odisha government has directed all departments to procure only electric vehicles (EVs) for official use. The decision comes against the backdrop of prevailing fuel and energy challenges arising from the West Asia crisis and the growing burden of fuel expenditure on government finances.

The new guidelines were issued by the Finance Department through an Office Memorandum dated May 30, 2026.

According to the memorandum, all future vehicle purchases by government departments must be electric and adhere to prescribed cost ceilings based on the rank of the officials using them. The maximum limit has been fixed at ₹30 lakh for the Governor, Chief Minister, Ministers, Chief Justice, and Judges of the Orissa High Court. Senior bureaucrats, including the Chief Secretary, Development Commissioner, Agriculture Production Commissioner, Additional Chief Secretaries, Principal Secretaries, and Secretaries, will be entitled to EVs costing up to ₹25 lakh.

District Judges, Collectors, Superintendents of Police, and officers of equivalent rank can use vehicles priced up to ₹20 lakh.

The government has made it mandatory for departments to obtain prior concurrence from the Finance Department before procuring new vehicles. EVs can only be purchased after the existing vehicles complete their prescribed lifespan and are formally condemned or scrapped.

The memorandum also encourages procurement through the Government e-Marketplace (GeM) platform. Only EVs manufactured by Tata Motors, Mahindra, and Maruti Suzuki will be eligible for purchase.

The policy further restricts the procurement of petrol and diesel vehicles, allowing them only in exceptional circumstances with Finance Department approval. The guidelines will apply to all state government departments, public sector undertakings, universities, institutions, and government-supported societies.

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