Odisha Relaxes Mandatory EV Hiring Rule, Allows Fuel Vehicles After Failed Tenders

Bhubaneswar, Oct 14 (UDN): The Odisha Government has relaxed its mandatory electric vehicle (EV) hiring policy, permitting departments to hire petrol- and diesel-powered vehicles if open tenders for electric vehicles fail to attract eligible bids.

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The Finance Department announced the relaxation through an Office Memorandum, citing operational difficulties faced by government offices, including a lack of responsive bids for EVs.

The earlier directive, issued on June 4, 2026, had made EV hiring mandatory from June 1 as part of the state government’s efforts to reduce fuel expenditure amid the West Asia crisis.

Fuel Vehicles Allowed Under Specific Conditions

Under the revised guidelines, departments can opt for internal combustion engine (ICE) vehicles only after inviting open tenders for EVs and receiving no responsive bids.

The concerned offices must submit documentary evidence of the unsuccessful tender to their administrative departments before proceeding with the alternative arrangement.

Where a hired vehicle is intended to replace a condemned or scrapped government vehicle, the administrative department can approve the relaxation. However, hiring a vehicle for a new office or post, or without scrapping an existing vehicle, will require prior concurrence from the Finance Department, supported by proper justification.

Departments to Conduct Their Own Hiring Process

The new guidelines also change the procedure for hiring vehicles. Individual government offices will now invite their own open tenders after obtaining approval from the competent authority, instead of routing the process through the Odisha Renewable Energy Development Agency (OREDA).

Vehicles already deployed by OREDA will continue to serve the concerned departments and organisations until their existing contracts expire. After that, OREDA will withdraw completely from vehicle hiring and provisioning for other government departments and organisations.

Revised Order Takes Immediate Effect

The revised order has come into effect immediately and provides departments with an alternative when EV hiring proves unworkable through the tendering process.

While the state’s policy continues to prioritise electric vehicles, the relaxation is intended to address practical difficulties in procurement and ensure that government offices can meet their transportation requirements when suitable EV bids are unavailable.