Govt turns up heat on induction push, makers asked to ramp up production

Kolkata: The government has made fresh requests to the industry to significantly expand domestic production capacity for induction cooktops, as it plans to procure millions of units over the next 12-18 months to accelerate a shift away from LPG-based cooking, two senior industry executives said.

The executives said during recent meetings with industry stakeholders, government officials indicated that the procurement could be as high as 6-8 million units. According to them, the cooktops are expected to be distributed under the National Efficient Cooking Programme (NECP) run by Energy Efficiency Services (EESL), which will procure the products through a tendering process.

EESL, a joint venture of public sector undertakings under the power ministry, had earlier led the nationwide transition from incandescent bulbs to LED lighting by reducing the cost of LED bulbs by 70-80% through bulk procurement. The government wants EESL to replicate this model for induction cooktops through NECP. The company recently floated a tender to procure 200,000 induction cooktops, which closed earlier this month.

"It has been communicated that this is a pilot tender and more are expected to follow. The government wants the industry to prepare for significantly higher demand as it may itself procure several lakh units. Initial estimates suggest the number could eventually rise to 6-8 million units," said the chief executive of a leading electronics contract manufacturer that produces induction cooktops for multiple brands.

In response to ET's queries, an EESL spokesperson said the company had floated a tender for 200,000 induction cooktops. EESL sells induction cooktops through its retail platform and is also supplying them along with other energy-efficient products such as BLDC fans and LED lights.

EESL launched the programme in 2023 and is supplying to states like Andhra Pradesh, Ladakh and Tripura, he said. "EESL looks forward and hopes for market transformation with its NECP."

India has been encouraging domestic electronics companies to expand production and increase localisation of induction cooktops since the onset of the Gulf conflict, when crude oil prices surged and the rupee came under pressure. According to the government, the country currently has LPG stocks sufficient for around 45 days. The government has also asked manufacturers to explore electric cooking appliances for commercial use.