Odisha to Replace Entire Official Vehicle Fleet with EVs in Six Months
State to procure 10,000 electric and hybrid vehicles amid budget constraints and model shortages
Bhubaneswar: The Odisha government is preparing for a major green transition by replacing its entire fleet of official vehicles used by ministers, senior bureaucrats, and department heads with electric vehicles (EVs) within the next six months. The move aims to make the state administration a frontrunner in adopting clean mobility and reducing carbon emissions, but the procurement process is already generating intense competition among automobile manufacturers and triggering policy dilemmas for officials.
Preparations are in full swing, with discussions on procurement models, cost revisions, and brand selection gaining momentum. However, officials remain caught between budgetary limitations and the high cost of electric and hybrid vehicles. Several leading automakers have begun lobbying hard at Lok Seva Bhawan, vying for what could become one of the country’s largest government EV procurement deals.
High-Level Talks and Intense Lobbying
Representatives from major automobile companies including Tata, Mahindra, Hyundai, Kia, Toyota, MG, Honda, and Maruti Suzuki have been camping in Bhubaneswar in recent weeks, meeting senior officials to pitch their electric and hybrid models. Officials from the Chief Minister’s Office, Chief Secretary’s Office, and the Departments of Transport and Finance are holding regular discussions with these companies to evaluate performance, pricing, and availability.
Sources said the Finance Department is finding it difficult to align existing budgetary ceilings with the significantly higher prices of EVs. A high-level meeting chaired by the Chief Secretary is expected shortly to finalize the state’s new vehicle procurement policy. This meeting will determine the final mix of electric and hybrid vehicles, vendor selection criteria, and revised cost slabs for various ranks of officials.
Financial Challenges and Scrappage Incentives
As per Transport Department data, Odisha has already scrapped around 4,000 old vehicles, earning nearly ₹300 crore through the Centre’s vehicle scrappage incentive scheme. Another 6,200 vehicles are due to be scrapped soon, which could fetch an additional ₹500 crore in central assistance. Combined with state funds, the government plans to purchase approximately 10,000 new vehicles at an estimated total cost exceeding ₹800 crore.
However, the transition is complicated by the fact that many government-approved vehicle models do not yet have EV equivalents. This has prompted the Finance Department to propose revising the existing vehicle cost ceilings to accommodate the higher prices of EVs and hybrid options.
Under current guidelines, the Chief Minister, Cabinet Ministers, Chief Secretary, and senior IAS officers are entitled to vehicles priced up to ₹25 lakh—typically Toyota Innova, Tata Hexa, or Mahindra XUV500, with most preferring the Innova. Principal Secretaries and Secretaries are allowed vehicles costing up to ₹15 lakh, such as Maruti Ciaz or Honda City, while District Collectors and Superintendents of Police usually use SUVs like Mahindra Scorpio, Hyundai Creta, or Marazzo. Mid-level officials are allotted smaller vehicles such as Swift Dzire or Bolero.
Cost Revisions and Hybrid Mix
Since electric vehicles are significantly more expensive than their petrol or diesel counterparts, the Finance Department has proposed recalculating cost limits by excluding GST and road tax to bring EV and hybrid options within budget. Officials are also considering a hybrid purchase model, which would allow the use of both electric and hybrid vehicles to mitigate challenges posed by limited EV charging infrastructure across the state.
This hybrid approach is expected to ensure continuity in official travel, particularly in remote or rural areas where charging facilities remain sparse. The proposal aligns with the government’s long-term plan to expand EV charging stations under its clean mobility and sustainable transport policy.
Industry Competition and Transparency Concerns
Traditionally, Odisha’s government fleet has been dominated by Toyota, Mahindra, and Maruti Suzuki. However, the upcoming procurement has attracted new entrants such as Tata Motors, Hyundai, Kia, MG Motor, and Honda, all keen to expand their footprint in the government segment. Each company has reportedly offered competitive pricing, maintenance support, and localized production commitments to strengthen their bids.
Observers note that the procurement, which could exceed ₹800 crore in value, will require a highly transparent and well-audited process to ensure fairness and accountability. Questions have also been raised about whether automakers can supply the large number of vehicles required within the tight six-month deadline.
Despite these challenges, officials remain optimistic. “The transition to electric mobility is a crucial step toward achieving Odisha’s sustainability and climate goals. The focus now is on balancing fiscal prudence with environmental responsibility,” said a senior official from the Finance Department.
If executed as planned, Odisha could become one of the first states in India to completely electrify its official vehicle fleet, setting a national precedent for clean governance and sustainable administration.
