Bhubaneswar: In a key decision, the Odisha government has made it mandatory for its institutions and undertakings to hire only electric vehicles (EVs) from June 1.

In a circular issued on Thursday, the Finance Department said the move has been taken in view of prevailing fuel and energy challenges arising from the West Asia crisis, along with the rising burden of fuel expenditure on the state exchequer.

The department has also fixed monthly hiring charges for different categories of government functionaries. However, these charges do not include the cost of charging the vehicles. A separate cost of ₹2 per kilometre towards charging will be paid to the service provider. In cases where the state bears the charging cost directly, no additional payment will be made to the service provider, the circular clarified.

The Finance Department further stated that EVs must be hired through the Odisha Renewable Energy Development Agency (OREDA), which will provide up to 300 electric vehicles on rent.

New EVs will be hired within the prescribed maximum monthly hiring charges as notified by the department.

The directive will be applicable to all government departments, government-supported undertakings, institutions, universities, and societies under the state government.