THEFinance Ministry has asked Ministries and departments to make electric vehicles (EVs) their “default and preferred choice” for staff cars, and set a price cap of Rs 20 lakh for procurement of such vehicles. The Finance Ministry said that, to promote electric mobility, reduce dependence on fossil fuels, and account for prevailing market prices and vehicle lifecycle costs, it is revising the Net Dealer Price (NDP) ceiling for procuring EVs and Internal Combustion Engine (ICE) vehicles. Accordingly, the NDP ceiling for EVs has been set at Rs 20 lakh, double the Rs 10 lakh limit set for ICE vehicles (petrol/diesel/hybrid). The 2022 instructions prescribing the guidelines regarding procurement and hiring of cars by Ministries/Departments had fixed the NDP ceiling at Rs 6 lakh. The Expenditure Department said going forward, Ministries/Departments shall ordinarily procure Electric Vehicles (EVs) at the time of condemnation/ replacement of their existing ICE staff cars.