Energy Efficiency in Small Scale Industries - An Indian Perspective

The small-scale sector occupies a position of prominence in the Indian economy, contributing to more than 50% of the industrial production in value addition terms. The sector accounts for one third of the export revenue and employs the largest manpower next to agriculture. In India's present liberalized economy, the survival and growth of small-scale industry (SSI) largely depends on its ability to innovate, improve operational efficiency and increase productivity. It has been observed that the factories in the small-scale sector in India are generally less efficient in process and utility energy use compared to larger enterprises, as well as to enterprises of equivalent capacity in other countries. There is also a general disregard in small-scale units towards environmental management. The poor energy and environmental performance is directly related to the lack of technical capacity in these enterprises to identify, access, adapt and adopt better technologies and operating pr...