Now, public sector companies allowed to buy cars of up to 2,500 cc for staff

The Department of Public Enterprises (DPE) has issued recent tips permitting firms to buy automobiles of as much as 2,500 cc, an improve from the sooner restrict of two,000 cc, with the situation that the automobiles should be manufactured in India, fuel-efficient and bought with the prior approval of the board of administrators. “CPSEs could buy fashions of autos manufactured in India, not exceeding 2,500 cc, for workers automotive functions and area visits,” mentioned the rules, which had been despatched to all Ratna CPSEs final month.

The kind of automotive to be chosen for buy would rely upon components such because the schedule of the CPSE, Ratna standing, pay scales adopted and monetary prudence.

Whereas the federal government helps the usage of electrical and hybrid autos, it has mentioned that CPSEs should contemplate their monetary place earlier than choosing hybrid or electrical autos, that are dearer than petrol and diesel variations.

The rules additionally enable for the substitute of present autos, however with sure circumstances. Any substitute would require prior approval from the board of administrators, guaranteeing that the choice is clear and in keeping with the organisation’s monetary targets.

The rules prohibit non-public use, imposing a month-to-month restoration of ₹2,000 for private journeys, whereas selling a extra accountable and sustainable method to employees automotive administration in CPSEs.

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Occasionally, the Division of Public Enterprises points such tips as a fiscal self-discipline measure. In 2022, it had restricted CPSEs from utilizing automobiles with engines bigger than 2,000 cc for official use.