CSD Canteen Car Buying Process Revised from Jan 2023: New Eligibility Rules with Pay Level

Review of Entitlement of Four-wheelers Through CSD

Pursuant to the official communication from the Ministry of Defence on November 30, 2022, there have been amendments made to the entitlement criteria for​ acquiring a vehicle through the CSD AFD online platform, which will come into effect on January 1, 2023. Members of the Army, Navy, and Air Force, as well as Ex-Servicemen, will now have the privilege to purchase vehicles valued at 8 Lakh, 10 Lakh, and 20 Lakh corresponding to pay​ levels 3 to 5, 6 to 9, and 10 to 18 respectively.

CSD Car Eligibility for Pay Levels 3, 4 and 5

This is a review of the eligibility criteria for purchasing four-wheelers (cars) through CSD for individuals in Pay Level 3A to 5, including retired and widowed individuals (as applicable). The cost of the vehicle is Rs. 8 lakh excluding taxes. The first vehicle can be purchased while in service, and the second vehicle can be purchased after retirement. The first vehicle can be purchased after five years of service. There must be a gap of eight years between the purchase of two vehicles. If the late husband of a widow had purchased a car each while in service and after retirement, she will not be eligible to buy a car. However, if the late husband had purchased only one car while in service, then the widow can purchase one car through CSD after a gap of eight years from the date of the last purchase.

CSD Car Eligibility for Pay Levels 6, 7 and 9

The pay levels of 6 to 9, including retirees and widows, are eligible to purchase a car through the CSD. The first car can be purchased as an Other Rank, the second car upon promotion to Junior Commissioned Officer, and the third car after retirement. The first car can be purchased after completing five years of service, and there must be a gap of eight years between the purchase of two cars. However, if the late husband had purchased a car during his service as well as after retirement, the widow will not be eligible to buy a car. If the late husband only purchased a car during his service, then the widow is allowed to buy one car through CSD after a gap of eight years from the date of last purchase. The cost of the car is Rs 10 Lakh, excluding taxes.

CSD Car Eligibility for Pay Levels 10 to 18

Eligibility for CSD car for Pay Levels 10 to 18, including retired and widows (as applicable), is Rs. 20 Lakh excluding taxes and can be availed once in every eight years.

CSD Car Eligibility for Ordnance Officers

The eligibility criteria for CSD car purchases extends to ordnance employees and officers, as well as serving and retired defence civilians who are paid out of defence estimates in Pay Level 11 to 18, including family pensioners. The maximum limit for the car purchase is set at Rs 20 lakh, excluding taxes, and this benefit can be availed once in every eight years.

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Integrated HQ of MoD (Army)
Quartermaster General’s Branch
Canteen Services Directorate
West Block-Ill, Wing-III,
R K Puram, New Delhi-110066

No 95350/Q/DDGCS/Policy

30 Nov 2022

As per Distribution List

REVIEW OF ENTITLEMENT OF FOUR-WHEELERS THROUGH CSD

1. Refer CS Dte letter No 96350/Q/DDGCS/CAR/POLICY dated 27 Oct 2020.
2. Competent Authority has approved the following revised entitlement of four-wheelers w.e.f. 01 Jan 2023 .-

3 Addl Incentive for Purchase of Electric Vehicles (EVs). Beneficiaries will be entitled to purchase EVs costing up to 5 Lakhs more than the limits stipulated at Para 2 above.

4. Policy on Special Sanctions will continue as hither to fore subject to above entitlement.

5 This letter supersedes CS Dte letter No 95350/0/DDGCS/CAR/POLICY dated 27 Oct 2020

(APS Chahal) Brig
Brig CS
for QMG

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