Small-scale steel re-rolling mills produce 65 percent of steel in India which is the world’s fourth largest producer of steel. Typically associated with high levels of pollution and inefficient resource use, these units consume one percent of energy consumed in India. The partnership between the Ministry of Steel and UNDP has demonstrated that units which have adopted a series of measures to improve energy efficiency can save energy costs by 25-30 percent and reduce greenhouse gas emissions by 25 percent.
Speaking at a workshop to launch the new phase of partnership on ‘Upscaling Energy Efficient Production in Small Scale Steel Industry in India’, Shri G. Mohan Kumar Secretary, Ministry of Steel said, “Production of steel in India is expected to reach 149 million tons by the end of the 12th Five-Year Plan period. Strategies to develop the steel sector will need to focus on ensuring sustainable growth in the sector. The new phase of partnership with UNDP and the Australian Agency for International Development will represent an important step in this direction by demonstrating energy efficient production processes in 300 units across the country.”
Ms. Lise Grande, United Nations Resident Coordinator and UNDP Resident Representative said, “This project shows that small and medium sized enterprises are big players when it comes to energy efficiency. The enterprises that have adopted energy efficient technologies are saving money, contributing to a better environment and becoming more competitive. The approach they are taking is a winning approach.”
Much of the investment in cleaner and more energy efficient production processes in the first phase of the partnership was driven by small mill owners themselves. Thirty-one units saved up to INR 40 crore in fuel savings. Companies were able to pay back investments made in energy efficiency measures in 6 to 18 months.
Nearly 150 stakeholders representing small scale steel mill owners, industry associations, technology providers and government agencies participated in the launch workshop.
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