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Steel Ministry to scale up energy efficiency project for small units

According to reports, enthused by the success of a project aimed at reducing energy consumption by small-scale steel units, the Steel Ministry has now decided to take it up on a bigger scale.

The new project – Upscaling Energy Efficient Production in Small-Scale Steel Industry in India – will lead to cleaner production in 300 units, including the induction furnace units, Steel Secretary G Mohan Kumar said here.

The Steel Ministry had earlier proposed a project on the same lines in its 12th Five-Year Plan document for energy efficiency improvement projects in the secondary steel sector by providing interest subsidy. However, this did not happen.

Under the existing project, which started in April 2004 and will end next month, the ministry and UNDP had taken up 34 small-scale steel rolling units. The success of the project resulted in improved energy efficiency leading to higher profits and fuel savings of Rs 40 crore.

“The new phase of partnership with UNDP and Australian Agency for International Development ( AusAID) will represent an important step in this direction by demonstrating energy efficient production processes in 300 units across the country,” Kumar said.

India has about 1,800 steel-rolling mills. They supply about 65 per cent of India’s long product demand.

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