Noida, May 18 (APAC Media): The Union government has directed state-owned banks and insurance companies to implement aggressive cost-cutting measures and accelerate their transition to electric vehicles (EVs) in a move aimed at enhancing operational efficiency and supporting India’s green mobility goals.
According to sources, the Ministry of Finance has asked these public sector entities to review non-essential expenditures, optimise operational processes, and consider shifting their vehicle fleets to EVs wherever feasible.
The directive comes amid ongoing efforts to reduce the carbon footprint of government institutions and promote sustainable practices across sectors.
“Public sector banks and insurance firms play a pivotal role in the economy. Reducing operational costs while transitioning to electric vehicles will not only boost efficiency but also demonstrate India’s commitment to a greener future.†Ministry of Finance, said.
The government has stressed using technology and digital tools to reduce costs and improve service delivery. Proposed measures include lowering energy consumption in offices, streamlining travel expenses, and reviewing vendor contracts.
“Encouraging public sector entities to adopt EVs and trim operational costs sets a strong precedent for private sector companies,†said Anil Kumar, a senior economist at the Centre for Policy Research. “It’s an important step towards sustainable finance and cleaner urban mobility.â€
Analysts noted that the move could boost domestic adoption of electric vehicles and help curb India’s reliance on fossil fuels in government transport fleets.
“All organizations should, wherever feasible, replace petrol and diesel vehicles in their head offices and branches with electric cars,†the order stated.
Together, state-run banks and insurance companies manage assets worth several lakh crore rupees, making their operational efficiency crucial to the wider economy.
The Finance Ministry’s directive highlights the government’s push to embed sustainability and fiscal discipline across public institutions.
Officials said the plan would be rolled out in phases, focusing first on areas with the greatest impact, though no specific timelines have been set.
News Agency Inputs
Disclaimer:Â Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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