India’s push towards cleaner energy and bioenergy-linked sustainability measures gathered pace after the Finance Ministry directed state-run banks, insurers and financial institutions to adopt austerity steps, including faster transition to electric vehicles and reduced operational spending.
According to a Reuters report, the Department of Financial Services (DFS) on Monday issued fresh guidelines to public sector institutions such as State Bank of India, Bank of Baroda and Life Insurance Corporation of India as part of efforts to control expenditure amid global economic uncertainty.
The new measures require meetings, consultations and review sessions to be conducted through video conferencing unless physical attendance is necessary.
The ministry has also imposed tighter restrictions on foreign travel by senior officials, including chairpersons, managing directors and chief executive officers. Overseas meetings are expected to be attended virtually wherever possible, while travel by top executives must remain within approved limits.
As part of the government’s clean energy push, the DFS has instructed organisations to accelerate the use of electric vehicles by replacing petrol and diesel vehicles used at head offices and branch offices with EVs wherever feasible.
The move follows Prime Minister Narendra Modi’s recent appeal to government departments and officials to maintain restraint in spending and adopt austerity measures in view of possible economic pressures caused by continuing geopolitical tensions.
Reuters reported that prolonged conflict in West Asia could impact India’s economic growth, increase inflationary pressure and strain the country’s balance of payments. The Indian rupee has also weakened significantly and remains among Asia’s poorest-performing currencies this year.
Alongside the Centre’s directives, several Indian states have reportedly introduced work-from-home arrangements for employees two days a week as part of broader efforts to reduce operational costs.
