In a landmark move to combat rising fuel costs and reduce the government’s carbon footprint, the Odisha Finance Department has issued a firm directive: every official vehicle hired from today must be electric.
Citing “prevailing fuel and energy challenges arising out of the recent West Asia crisis” and the ever-increasing burden on the state exchequer, the government has made the hiring of Electric Vehicles (EVs) compulsory for all official purposes. The order applies not only to state departments but also to all government undertakings, institutions, universities, and societies.
To ensure transparency and control costs, the Finance Department has fixed maximum monthly hiring charges (exclusive of taxes and charging cost) for different levels of functionaries:
|
Sl. No.
|
Functionaries
|
Maximum Monthly Hiring Charge
|
|---|---|---|
|
1
|
Block / Tahasil Level
|
₹55,000
|
|
2
|
Pool Vehicles (Admin Depts / HoDs), Special Secretary / Director, District Level
|
₹50,000
|
|
3
|
District Judge / Collector / SP
|
₹60,000
|
|
4
|
Additional Chief Secretary / Principal Secretary / Commissioner-cum-Secretary & equivalent
|
₹65,000
|
|
5
|
Chief Secretary / Development Commissioner / Agriculture Production Commissioner / Member, Board of Revenue & equivalent
|
₹70,000
|
|
6
|
Hon’ble Governor / Hon’ble Chief Minister / Hon’ble Chief Justice & Justices of Orissa High Court / Hon’ble Ministers
|
₹80,000
|
Importantly, the hiring charges do not include electricity for charging. Service providers will receive ₹2 per kilometre towards charging costs. If the state government bears the charging expense directly, no additional payment will be made to the provider.
The rates will remain valid for two years and will be reviewed thereafter. Departments have also been encouraged to hire EVs through the Odisha Renewable Energy Development Agency (OREDA), which can supply up to 300 vehicles at tendered rates.
The order further states that all vehicles to be hired for official use after 1 June 2026 shall be EVs only. Officials have been instructed to follow the terms and conditions of an earlier Finance Department memorandum (No. 15836/F dated 27.05.2025) while finalising hires.
This sweeping policy is expected to deliver significant savings on fuel expenditure while positioning Odisha as a leader in sustainable governance. By moving its entire official fleet to electric, the state not only reduces its dependence on volatile global oil prices but also sends a strong message on climate action.
Senior officials say the move will also boost demand for EVs in the state, encouraging local manufacturers and charging infrastructure. With the West Asia crisis still fresh in memory, Odisha’s decisive shift to electric mobility could well become a model for other states grappling with similar challenges.
