Odisha Relaxes Rules for Hiring Government Vehicles, Allows Petrol and Diesel Cars if EV Tenders Fail

The Odisha government has relaxed its rules for hiring vehicles for official purposes, allowing government departments to hire petrol and diesel vehicles if tenders for electric vehicles (EVs) fail to attract suitable bids. The Finance Department has issued a fresh directive revising the existing guidelines for hiring vehicles for government offices.

Under the revised rules, government departments must first invite tenders for hiring electric vehicles. If no suitable bids are received, they can seek permission to hire petrol or diesel vehicles by submitting an application through the concerned department along with proof that the EV tender process has failed.

Earlier, the state government had made hiring electric vehicles mandatory for official purposes from June 1 through an order issued on June 4. The decision was aimed at reducing fuel expenditure amid the West Asian crisis. However, the policy has now been relaxed after the tender process failed to attract suitable bidders willing to provide EVs.

Permission Required for Hiring Conventional Vehicles

According to the new guidelines, administrative departments may permit the hiring of replacement vehicles if existing government vehicles are declared unserviceable or scrapped.

However, if a department intends to hire a new petrol or diesel vehicle without scrapping its existing vehicle, prior approval from the Finance Department will be required.

The revised rules will also apply when new government offices are established or vehicles are required for newly sanctioned posts. Departments must follow the prescribed procedures and obtain the necessary approvals before hiring vehicles.

Departments to Invite Tenders Directly

The government has also changed the procedure for hiring vehicles through the Odisha Renewable Energy Development Agency (OREDA).

Under the revised arrangement, government departments will no longer hire vehicles through OREDA. Instead, individual offices will invite tenders at their own level after obtaining prior approval from the competent authority.

However, electric vehicles currently operating in government offices through OREDA will continue to be used until their existing contracts expire. Once the contractual period ends, OREDA will withdraw from the vehicle-hiring process.

The Finance Department’s latest directive has come into effect from the date of its issuance.

The revised policy is expected to provide greater flexibility to government departments in arranging vehicles for official work while retaining the requirement to explore electric vehicles before opting for conventional petrol or diesel alternatives.