India is planning a major push to expand the adoption of electric cooking stoves, as a shortage of cooking gas triggered by the West Asia conflict continues to strain households, Mint reported, citing
people aware of the development.
The government is likely to explore a model that leverages multilateral financial institutions to offer zero-interest loans for induction stoves through state-run Energy Efficiency Services Ltd (EESL).
As part of the plan, EESL may revamp and scale up the National Efficient Cooking Programme (NECP), which was launched in 2023, to meet a sharp rise in demand for electric cookstoves—previously considered a niche product before the crisis.
Under the proposed framework, a third party would subsidise the interest component on equated monthly instalments (EMIs), thereby reducing the financial burden on economically weaker consumers. The existing NECP does not currently include any interest subsidy component.
EESL is in discussions with global financial institutions such as the World Bank and the Asian Development Bank (ADB) to structure the programme. “It would be a form of interest subvention, supported by these institutions,” one of the people cited told Mint.
Once partnerships are finalised, EESL could facilitate zero-interest loans for induction stoves. The model may involve tie-ups with public and private sector banks, where consumers purchasing stoves on EMI would only repay the principal amount, while the interest cost is borne by the partnering financial institutions.
The move comes amid a surge in demand for electric cooking solutions following disruptions linked to the West Asia conflict, which has impacted fuel availability and prices.
