India weighs induction cooktop subsidy amid Iran war energy crisis

New Delhi: India is weighing a plan to offer support for induction cooktops under the PM Suryaghar Muft Bijli Yojana in the wake of severe energy market disruptions due to the Iran war, aiming to move at least some households from LPG to solar-powered electricity usage.

Preliminary discussions have been held at the government's highest level, multiple people aware of the development said, adding that the renewable energy ministry is firming up the details. The aim is to encourage usage, not just ownership, of the appliances, they said. India has more than 320 million active LPG connections.



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These LPG connections include those recently upgraded to the clean cooking fuel supply grid through the Pradhan Mantri Ujjwala Yojana (PMUY). The scheme, started a decade ago, now has nearly 100 million such beneficiaries.

A government official said electric cooking could help cut reliance on conventional fuels, adding that the current situation presents a timely opportunity to push adoption.

A two-pronged approach would be followed that would focus on enhancing local production with a big push for adoption with some support. ET recently reported that the government was also working on dual-pronged tax cuts on induction cooktops to make electric cooking more affordable. It is also considering lowering customs duties on key components used in induction cooktops to ease input cost pressures for local manufacturers and boost production.


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Separately, the commerce and industry ministry has proposed reducing the goods and services tax (GST) on appliances to 5% from the current 18%.

The commerce and industry ministry recently held stakeholder consultations with the power ministry to address demand-supply challenges in the induction cooktop sector and assess immediate measures for stabilising product supply and prices.