Bhubaneswar: In a major step towards promoting green mobility and reducing government expenditure on fuel, the Odisha government has made it mandatory for all departments and state-supported institutions to hire Electric Vehicles (EVs) for official purposes from June 1, 2026.
The Finance Department issued an Office Memorandum on Thursday, directing all government departments, public sector undertakings, universities, autonomous institutions and societies receiving state support to switch to EVs while hiring vehicles for official use.
The decision comes against the backdrop of rising fuel costs and prevailing energy challenges linked to the ongoing crisis in West Asia, which has increased the financial burden on the state exchequer.
Under the new policy, all vehicles hired after June 1, 2026, for official duties must be electric vehicles. The government has also prescribed category-wise maximum monthly hiring charges for EVs, excluding taxes and charging costs.
As per the revised rates, EVs hired at the Block and Tahasil levels can be engaged at a maximum monthly charge of ₹55,000. The ceiling has been fixed at ₹50,000 for pool vehicles of administrative departments, Special Secretaries, Directors and district-level officers. District Collectors, Superintendents of Police and District Judges will be entitled to vehicles costing up to ₹60,000 per month, while Additional Chief Secretaries, Principal Secretaries and equivalent officers can hire EVs up to ₹65,000 per month.
The highest hiring ceiling of ₹80,000 per month has been approved for the Governor, Chief Minister, Chief Justice, Ministers and Ministers of State. The Chief Secretary, Development Commissioner and officers of equivalent rank will be eligible for EVs costing up to ₹70,000 per month.
The memorandum further provides for a charging cost reimbursement of ₹2 per kilometre to service providers. However, no separate charging payment will be made if the government itself bears the charging expenses.
To facilitate implementation, departments have been allowed to hire EVs through the Odisha Renewable Energy Development Agency (OREDA) at tendered rates. OREDA has been authorised to supply up to 300 electric vehicles on a rental basis.
The prescribed rates will remain effective for two years and will be reviewed thereafter, the order stated.
The government has instructed all departments, Heads of Offices, District Collectors, Superintendents of Police and other competent authorities to ensure strict compliance with the new guidelines. Existing terms and conditions governing vehicle hiring under the Finance Department’s memorandum dated May 27, 2025, will continue to remain in force.
