Bhubaneswar: The Odisha Government is gearing up to replace its entire fleet of official vehicles used by ministers, secretaries, and senior officers with electric vehicles (EVs) within the next six months. Preparations are underway, but officials are reportedly caught in a dilemma over which company’s vehicles to purchase.

Earlier, vehicle allocation and cost were determined based on the seniority of ministers and officials. However, as EVs are significantly more expensive than conventional vehicles, discussions are ongoing on how to adjust the cost ceiling. Meanwhile, representatives from various automobile companies have set up camp at Lok Seva Bhawan, lobbying hard to secure government orders.

Officials from the Chief Minister’s Office, Chief Secretary’s Office, and the Departments of Transport and Finance have been frequently meeting marketing heads of leading car manufacturers such as Toyota, Mahindra, Tata, Hyundai, Kia, MG, Honda, and Maruti Suzuki — each pushing for inclusion in the state’s mega procurement plan.

According to sources, the Finance Department is facing challenges in aligning existing budgetary limits with the higher prices of EVs. A high-level meeting chaired by the Chief Secretary is expected soon to finalise the vehicle procurement policy — including the mix of EV and hybrid vehicles, vendor selection, and revised cost slabs based on official ranks.

Massive Fleet Overhaul

Transport Department data shows that by March 31, the state had scrapped around 4,000 old vehicles, earning nearly Rs 300 crore under the Centre’s vehicle scrappage incentive scheme. Another 6,200 vehicles are set to be scrapped, which could fetch an additional Rs 500 crore in central assistance. Combined with state funds, the government plans to purchase around 10,000 new vehicles, with a total estimated cost of over Rs 800 crore.

However, the transition is complicated by the fact that EV versions of many approved government vehicle models are not yet available. Hence, the Finance Department has proposed a revision of vehicle cost ceilings to accommodate pricier EVs and hybrids.

Current Vehicle Categories and Preferences

As per existing guidelines:

  • Chief Minister, Cabinet Ministers, Chief Secretary, and senior IAS officers are entitled to vehicles costing up to Rs 25 lakh, such as Toyota Innova, Tata Hexa, or Mahindra XUV500. Most prefer the Innova.
  • Principal Secretaries and Secretaries are allowed vehicles within Rs 15 lakh, such as Maruti Ciaz or Honda City — with most currently using Ciaz.
  • District Collectors and SPs are allotted SUVs like Mahindra Scorpio, Hyundai Creta, or Marazzo, though Creta models were reportedly not supplied earlier.
  • Mid-level officials are permitted smaller cars like Swift Dzire or Bolero.

Traditionally, the state fleet has been dominated by Toyota, Mahindra, and Maruti Suzuki vehicles. Now, Tata, Hyundai, Kia, MG, and Honda are making aggressive bids to expand their presence, offering both electric and hybrid options.

Hybrid Option Under Consideration

With EV charging infrastructure still limited across Odisha, the government is also considering purchasing a mix of EVs and hybrids. Since EVs are costlier, the Finance Department has proposed recalculating vehicle prices excluding GST and road tax to bring them within budget limits.

However, questions remain about whether automakers can supply such a large volume of vehicles within the deadline. Observers are also watching how the government ensures transparency in procurement for what could be one of the largest official EV purchases in the country.