Odisha government has released guidelines for interest-free advance payment to its employees wishing to purchase electric vehicles (EV). The move aims to streamline the payment procedure and prevent irregularities. The Finance Department observed that the guidelines for electric vehicle advance were not being meticulously followed by the departments while sanctioning the advance in favour of their employees. To maintain uniformity in the procedure and avoid irregularities, the department has laid down some provisions/guidelines to be strictly followed by the sanctioning authorities.
Odisha government releases guidelines for interest-free payment for purchasing electric vehicles
According to the guidelines, the interest-free advance for purchase of electric motor cars will be available only to Group-A & Group-B category of government employees. The advance amount is limited to 75% of the cost of the electric vehicle (Ex-showroom Price) subject to a maximum of Rs 15 lakh. For electric two-wheelers (electric motor cycle/scooter/invalid carriages etc.), the advance will be available to Group-C and Group-D government employees and above. The advance amount is limited to 75% of the cost of the electric vehicle (Ex-showroom Price) subject to a maximum of Rs 2 lakh. The advance will be recovered in a maximum of 100 consecutive monthly instalments from subsequent months.
If the government employee retires or expires without payment of the full amount of the loan, the residual amount will be recovered from their arrear salary bill, leave salary bill, pension, Commutation pension or gratuity before its disbursements. If he/she resigns/quits from government service, the amount will be recovered under the OPDR Act. The government employees who will avail the advance have to furnish the copy of Registration Certificate, insurance and retail invoice of the vehicles to the sanctioning authority within 3 months from the date of release of the advances.
The Electric Vehicle Policy 2021 had promised a slew of incentives, including interest-free advance to government employees to promote EVs in the state to control the pollution emerging from fossil fuel used in vehicles. After introducing a portal for the release of subsidy on the purchase of EVs, the state government had announced the provision of interest-free advance to its employees in April 2022.
The Odisha government’s move to provide an interest-free advance for electric vehicle purchases to its employees is a significant step towards promoting sustainable transportation. The policy will not only help the state government reduce carbon emissions but will also encourage its employees to switch to cleaner modes of transport. Moreover, the guidelines for the interest-free advance ensure that the process is streamlined and the loans are recovered in a timely manner. This is a welcome move by the government, and it is hoped that it will lead to an increase in the adoption of electric vehicles in the state.
The electric vehicle market in India is expected to grow significantly in the coming years, driven by favorable government policies and incentives. The Odisha government’s move to provide an interest-free advance for electric vehicle purchases to its employees is a step in the right direction and will serve as a model for other states to follow.