Gujarat Government Scheme to Help MSMEs Reduce Energy Consumption

Published: 31st August 2015 10:40 AM  |   Last Updated: 31st August 2015 10:40 AM   |  A+A-


AHMEDABAD: 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 per cent 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.

According to Pandya, huge amount of electricity is consumed to generate heat in furnaces and boilers. But, 80 per cent of heat is wasted during the process and emitted into the atmosphere. "If we install heat exchangers on such outlets, we can divert that heat and put it into use for pre-processing work. For example, steel furnace has to produce 1,200 degree Celsius temperature to melt steel. Using heat exchanger, we can pre-heat that steel. This can reduce energy cost," he said.

Before launching the scheme, GEDA has now taken up primary audit of all the heat-intensive units in the state to find out the target industry and prepare customised solutions. "We have prepared a presentation on waste heat recovery system. After the report of primary audit arrives, we will select some units and show them the presentation to suggest them newer ways to save energy and reduce their cost," Pandya said.

"We will also assure them about a particular time frame in which they would recover the cost of installing the system. Our main task would be to make the industry understand the long term benefits, both for them as well as for the country," he said.

GEDA may also propose to share the project cost with MSMEs to win their confidence in the initial phase. "Since it is a new concept for MSMEs and it involves expenditure on their part to install heat recovery systems, GEDA may introduce a scheme where we would share the project cost initially to win their confidence," Pandya added. 

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