Lifting of the ban on purchase of new vehicles by Ministries – Departments

Lifting of the ban on purchase of new vehicles by Ministries – Departments

“To encourage the auto sector, the Government of India decided to lift the ban on the purchase of new vehicles to meet the operational requirement of Defence Forces, CAPF. Ban on purchase of other vehicles (including staff cars) continue except against condemnation”

The Finance Ministry issued orders today regarding the above subject and the same reproduced and given below for your information…

F.No.7(1)/E.Coord/2019
Ministry of Finance
Department of Expenditure
E.Coord.

North Block, New Delhi
September 17th, 2019

Office Memorandum

Subject: Lifting of the ban on purchase of new vehicles by Ministries/Departments

Reference is invited to Para of this Department’s OM No. 7(1)/E.Coord./2014 dated 29.10.2014 pertaining to economy measures and rationalization of expenditure wherein it stated that “Purchase of new vehicles to meet the operational requirement of Defence Forces, Central Paramilitary Forces & security related organizations are permitted.

Check also: Finmin Orders – Orders issued by Finance Ministry

Ban on purchase of other vehicles (including staff cars) continue except against condemnation”. Consequent to the aforesaid condition, all proposals relating to purchase of vehicles by Ministries/Departments other than those against condemnation were being made with the concurrence of the Department of Expenditure.

Read also: Finance Ministry Orders on 7th Pay Commission

(2) The matter regarding ban on purchase of vehicles (including staff cars) except against condemnation has been reassessed and examined by this Department.

(3) I am directed to state that the ban on purchase of other vehicles (including staff cars) except against condemnation stands withdrawn with immediate effect. The purchase of new staff cars on requirement basis including against condemnation will continue to be regulated within the ceiling fixed by the Department of Expenditure from time to time.

Also read: Finmin Orders 2019

Purchase of vehicles other than staff cars for operational need is also allowed, Ministries/Departments in consultation with their Financial Advisers shall ensure that all purchases of vehicles are made judiciously keeping in mind the principle of ‘need’ and ‘want’ and GFR 2017 provisions on procurement are adhered to strictly.

sd/-
(Thanglemlian)
Director (E,Coord)

View the order