India is planning a major push to increase the share of electric cooking stoves in its kitchens, as a shortage of cooking gas triggered by the West Asia war continues to hit households. The plan may involve bringing in multilateral financial institutions to arrange zero-interest loans through state-run Energy Efficiency Services Ltd (EESL).
The EESL is likely to redesign and ramp up the three-year-old National Efficient Cooking Programme (NECP) to meet a surge in demand for what was largely a niche product before the conflict, two people aware of the matter said. Under the model under consideration, a third party would subsidize the interest on equated monthly instalments (EMIs), lowering the cost burden for economically weaker consumers. The existing NECP has no provision for an interest subsidy.
“EESL is in talks with several financial institutions including World Bank and ADB,” one of the two people cited above said, requesting anonymity. “It would be a sort of subsidy on the interest, which the financial institutions can support with.” Once the loan from the multilateral institution is tied up, EESL will use it to support zero interest loans for induction stoves.
"Under this model, a tie-up with financing private or public sector banks may be worked out wherein if a person procures a cookstove from EESL on EMI, then the consumer needs to pay only the principal part of it every month, and the interest will be paid by the financial institution such as World Bank or ADB, which may partner with EESL, every month," the person added.
Demand for electric cookstoves shot up after the war began as consumers rushed to compensate for a shortage in LPG (liquefied petroleum gas) cylinders. On 12 March, an Amazon India spokesperson told Mint that sales of induction cooktops increased 30X in just two days.
Prices of these cooktops, too, have risen, though not abnormally. Basic models priced at around ₹1,800 saw an increase of about ₹100, while higher-end models witnessed steeper hikes, according to e-commerce data.
As demand rises, procurement of cooktops by EESL under the scheme is also being scaled up.
The second person said that a tender for 100,000 cookstoves has closed recently. “Two more tenders are scheduled for a total of 5 lakh (500,000) units,” this person said. “Given the growing interest, tenders may become more frequent and with more units on offer.”
The NECP was launched with a target of deploying 2 million cookstoves. “By FY27, it was initially targeted that 10 lakh (1 million) induction-based cookstoves would be deployed,” the second person said, adding that the target was later cut to 500,000 units due to weak demand.
“But now, given the rejuvenation of demand, the phase-wise target may have to be revised,” the second person added.
In response to an e-mail query, EESL’s spokesperson said that the agency had an order book for 69,872 units as of 25 March, of which 16,526 units were successfully deployed, while the rest are under deployment.
“The tender of 2 lakh (200,000 units) in phase one is under process,” the spokesperson said. “Regarding subsidies, at present there is no such agreement with any financial institutions. EESL has been working with OEMs and the ministry (of power) to address the problems/ issues of industry.”
A spokesperson for the World Bank said it is not involved in or financing EESL’s NECP scheme, including for any interest subvention or subsidies.
A World Bank spokesperson in response to an email query, said it is currently engaging in discussions with a range of stakeholders, including EESL, in a consultative capacity, as part of its broader support to the government of Uttar Pradesh in developing a clean cooking program under the Uttar Pradesh Clean Air Management Program.
“These engagements involve sharing global experience and insights on scaling clean cooking solutions. However, the World Bank is not directly involved in or financing EESL’s National Efficient Cooking Programme, including any arrangements related to interest subvention or subsidies. We would recommend reaching out to EESL for specific details on their program design and timelines,” the spokesperson said.
Queries emailed to the spokespersons of the Union ministry of power and ADB remained unanswered till press time.
Power to electrify
The development assumes significance for India, the second-largest global importer of LPG, with around 340 million consumers. Nearly 65% of its annual demand of 33 million tonnes is imported—about 90% from West Asia—exposing households to global disruptions and putting pressure on the country’s import bill.
Kirit Parikh, former member (energy) of the erstwhile Planning Commission of India, said the shift towards induction-based cooking is needed urgently, in light of the fact “most of our LPG is imported and the imports are very concentrated”.
“Induction cookstoves can very well replace LPG; however, availability should be ascertained,” added Saurabh Kumar, former vice chairman and MD of EESL. “One of the ways to ensure efficient adoption of linking of the programme to the PM Surya Ghar Yojana, wherein about 3 million households have already adopted solar power and they are connected to the discoms through net metering. Discoms have their data, so they can be easily approached.”
Kumar added that while the current spike in demand is driven by the crisis, awareness of the benefits will be key to making the shift permanent.
Mint earlier reported that the government is exploring ways to increase domestic production of induction cookers, petrochemicals, and other essential industrial inputs, as the West Asia war shows signs of continuing for some time.
Officials from the department for promotion of industry and internal trade (DPIIT), the power ministry and the directorate general of foreign trade (DGFT) reviewed strategies to boost output in sectors that could face supply disruptions if the war continues for the next few months, Mint reported.
During the meeting, industry stakeholders noted that key components of an induction cookstove—glass, coil, printed circuit boards (PCB) and DC fan—are mostly imported from China, and so incentives are required for domestic production.
“Industry has also sought customs duty reduction and GST reduction from 18% to 5% on these components,” said a third person aware of the developments, also requesting anonymity.