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India Tightens Government Car Rules: One Official, One Vehicle Policy Enforced

· · 2 min read

The Indian Centre has implemented stricter rules for official vehicle usage, mandating a 'One Entitled Officer, One Official Car' policy. This directive aims to curb misuse and reduce public expenditure across ministries and public sector undertakings.

New Delhi, India – The Central government has introduced stringent new guidelines for the use of official vehicles, enforcing a strict “One Entitled Officer, One Official Car” policy. This move, spearheaded by the Department of Expenditure under the Ministry of Finance, seeks to prevent the misuse of government vehicles and significantly reduce avoidable public expenditure.

New Directives to Boost Efficiency and Accountability

The updated directive, issued via an Office Memorandum (OM), explicitly states that no officer entitled to a government staff car can be allocated more than one official vehicle. This rule applies even if an officer holds additional charges across multiple ministries, departments, public sector undertakings (PSUs), or autonomous bodies.

Ministries and departments across the Union have been instructed to ensure rigorous compliance with these revised norms. Furthermore, vehicles not actively in use must be securely stored rather than being deployed unnecessarily, aiming to optimize resource allocation.

Curbing Misuse and Duplication

The new regulations also prohibit Central government officials from using vehicles belonging to PSUs, autonomous bodies, or quasi-government organizations, except when they are on official duty or an authorized tour. This measure is designed to eliminate duplication in vehicle allocation, enhance administrative efficiency, and ensure the prudent use of public funds.

These latest instructions reinforce and build upon earlier guidelines issued in September 2022. The emphasis remains on streamlining vehicle allocation and preventing misuse across all government entities.

Fuel Caps and Personal Use Rules Reinforced

Key aspects of the previous guidelines, now reinforced, include strict controls on operational costs. Each staff car is subject to a monthly fuel cap of approximately 250 litres. Any consumption exceeding this limit requires special approval from both the Administrative Secretary and the Financial Advisor, ensuring tighter fiscal oversight.

For personal use, entitled officers may utilize their official car for up to 500 kilometres per month. This privilege comes with a fee of ₹3,000 per month, in exchange for relinquishing their standard monthly transport allowance. Any personal travel beyond the 500 km monthly threshold will incur an additional charge of ₹24 per kilometre.

These comprehensive instructions have been circulated to all Union ministries and departments for immediate and strict compliance, effective July 28, 2026. The Centre anticipates that by enforcing the “One Officer, One Official Car” principle, it will effectively curb unnecessary expenditure and ensure that official vehicles are utilized solely for legitimate government purposes.

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