"In keeping with that tradition of supporting the national interest, Tata companies are requesting those employees who can afford to do so to consider whether they may wish to voluntarily give up the use of subsidised LPG," Tata group said in a statement on its website.
The group said Mr Modi's appeal to citizens, who can buy LPG at market prices to do so and forego the subsidy, is in the national interest.
"India's vital fuel requirements are met in large measure through costly imports; moreover, the foregone subsidy can be re-deployed towards other national development purposes," the group said.
Last week, Mr Modi had said that Rs 100 crore in subsidy has been saved by 2.8 lakh people giving up the use of below market price LPG.
"This money could be used for schools and providing medical facilities. I appeal to those who can buy LPG at market price, to please do not take subsidised LPG," Mr Modi had said.