Odisha Implements EV Cost Caps and Considers Centralized Vehicle Management
Odisha caps official EV costs, weighs centralised vehicle management policy

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Odisha has mandated that all new official vehicles must be electric, capping costs based on government rank. The state aims to phase out old vehicles while considering a centralized vehicle management policy to improve efficiency and reduce costs.
- 01The maximum procurement cost for EVs is set at ₹30 lakh for top officials and ₹25 lakh for senior bureaucrats.
- 02The state plans to phase out over 6,000 government vehicles over 15 years old under the vehicle scrappage policy.
- 03A proposed Odisha Centralised Contractual Vehicle Management Policy aims for 50% of hired vehicles to be EVs, increasing annually.
- 04The initiative seeks to reduce fuel expenditure and enhance energy security amid rising fuel costs.
- 05A digital monitoring platform, 'e-Odisha Vahana Tracker', is proposed for real-time tracking and oversight of contractual vehicles.
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The Odisha government has announced that all new official vehicles procured from June 1 must be electric, capping procurement costs based on the rank of government officials. The maximum cost is set at ₹30 lakh for top officials and ₹25 lakh for senior bureaucrats, with a focus on transitioning to electric mobility to reduce fuel expenditures and enhance energy security. This initiative is part of a broader effort to phase out over 6,241 ageing government vehicles over 15 years old. Additionally, the state is considering a centralized vehicle management policy to streamline procurement and improve efficiency. The proposed Odisha Centralised Contractual Vehicle Management Policy aims for at least 50% of all hired vehicles to be electric, increasing by 25 percentage points each year, with a goal of achieving a 100% electric fleet by 2029. A digital monitoring platform, 'e-Odisha Vahana Tracker', is also proposed to enhance oversight and reduce costs associated with contractual vehicles.
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The transition to electric vehicles is expected to significantly reduce fuel costs and improve energy security for the state government.
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