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Energy efficiency

Energy costs make up a substantial portion of production costs among many MSMEs (30–40%). This is particularly the case with MSMEs in energy intensive sectors such as manufacturing industries, metallurgical and metal industries (foundries, forging, alloys, and so on), and construction materials (bricks, tiles, and other such products). At the same time, most of the MSMEs largely use inefficient technologies and operating practices, which lead to wastage of energy. In today’s liberalized economy, the very survival of these MSMEs in a highly competitive market depends on their ability to cut down on energy costs. Hence, a prime focus area is to develop and promote energy efficient technologies and practices, so as to improve the profitability and competitiveness of these MSME units and reduce the overall energy requirements of the industry sector.

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