Bhubaneswar: The Odisha government has discontinued the interest-free advance facility for state employees purchasing electric vehicles (EVs), effective April 1.
In an official letter issued on Tuesday by the Finance Department, all state departments were informed that the provision stands discontinued from the start of the financial year 2026-27 and were directed to ensure strict compliance with the decision.
The interest-free EV advance was a key incentive under the Odisha Electric Vehicle Policy, 2021, introduced by the Commerce and Transport Department to promote green mobility among government staff. Under the scheme, eligible Group-A and Group-B employees could avail advances for electric cars (up to 75% of the ex-showroom price, subject to a maximum of Rs 15 lakh), while Group-C employees were covered for two-wheelers. The advance was fully interest-free.
The original policy was initially valid until December 31, 2025, and was later extended until March 31, 2026. In February 2026, the Finance Department had further extended the deadline for receiving applications for the interest-free advance until February 28, 2026, with sanctions and fund releases to be completed by March 10.
While a separate extension for general EV subsidies under the policy for the public was announced until June 30, 2026, the employee-specific interest-free advance has not been carried forward.
