The Ministry of Commerce and Industry is working on co-locating the offices of its various organisations into single locations across different state capitals to reduce travel and operational costs, Commerce and Industry Minister Piyush Goyal said in Mumbai on Friday.
The ministry currently operates more than 400 offices across 46 organisations in various state capitals across the country.
Earlier this week, Prime Minister Narendra Modi urged people to revive work-from-home practices and use public transport amid the West Asia energy crisis, which has led to rising fuel prices.
The commerce ministry will begin the co-location initiative in Mumbai before extending it to other state capitals, Goyal said. In Mumbai alone, the ministry has 20 offices across 12 organisations, occupying lakhs of square feet of real estate worth crores.
The National Productivity Council, which functions under the ministry, is studying how various offices can be brought together into a single location. It will also assess how the vacated real estate can be put to more efficient use after the shift.
“It may appear to be an administrative reform, but it will make life easier for businesses and common people,” he said.
Goyal noted that different offices currently incur separate housekeeping, electricity, and administrative expenses, all of which are substantial. Consolidating offices would help reduce these costs.
Not all organizations may need separate offices, as they could operate from centralized facilities equipped with audio-visual infrastructure, he added.
Fuel Price Increase
Commenting on fuel price hikes by oil marketing companies, Goyal said that, contrary to speculation about steep increases, prices had risen by only around ₹3, with companies still absorbing a significant portion of the costs. He also noted that the Centre had not increased fertilizer prices.
Welcoming the Maharashtra government’s decision to reduce VAT on aviation turbine fuel from 18% to 7%, he said Congress-ruled states should follow suit.
On Modi’s recent visit to the United Arab Emirates, Goyal said the Prime Minister had signed major agreements related to strategic petroleum reserves in India.
“The Prime Minister is on a mission for energy security, and the whole world is looking to India to help ease geopolitical tensions,” he said.
Goyal also said India is in talks with the United States on a bilateral trade deal.
“They have raised concerns regarding Section 301. We are working toward a holistic solution on the issue. The agreement will open new export and import opportunities and provide India with preferential access to the US market,” he said.
India currently has foreign exchange reserves of around $700 billion, enough to cover 11 months of imports, he added, noting that the IMF considers reserves sufficient if they can cover more than eight months of imports.