Gujarat govt scheme to help MSMEs reduce energy consumption

The comprehensive scheme will be launched soon by Gujarat Energy Development Agency (GEDA)

Don't want to miss the best from Business Standard?

The Gujarat government is planning to launch a comprehensive scheme to help state-based Micro, Small and Medium Enterprises (MSMEs) reduce their energy consumption as well as carbon footprint using latest technologies in conservation.

The project will be launched in the near future by Gujarat Energy Development Agency (GEDA), the nodal agency of state government for the promotion of energy efficient technologies.

According to GEDA Director J T Akhani, there is a huge scope in MSME sector for conservation as well as reuse of energy consumed by these units. As per a rough estimate, there are around three lakh MSME units operational in Gujarat.

"MSMEs account for a large share of energy consumption. Our aim is to reduce their consumption. MSME sector has potential to save 25 to 30% of energy consumed at present. They can achieve it by adopting energy efficient technologies. However, this concept of energy conservation is not very popular among them," Akhani said.

Keeping in mind these factors, GEDA has devised a long term plan to make these units more energy efficient by suggesting new techniques for saving as well as reusing energy for their need.

"At present, we are working on finding out ways to help MSMEs in reducing their energy consumption. In near future, we will launch a scheme to promote the use of waste heat, which is usually emitted in the form of air, in these units," said Akhani.

"Capturing and reusing such waste heat in factories would become very crucial for the industry in reducing their energy bill. GEDA will encourage maximum number of units to take advantage of our scheme, which will be mutually beneficial" he said.

Providing more insight into the ambitious scheme, GEDA's senior executive engineer Raju Pandya said Gujarat based units have a potential to save 2,500 MW electricity by adopting simple, yet effective ways to harness the waste heat.

"There are 3 lakh MSME units in Gujarat. Most of them uses boilers and furnaces, particularly those engaged in making steel bars, chemicals, dyestuffs and processing of textiles. However, most of these units are not aware of techniques by which the waste heat generated in their plants can be reused," he said.