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Project Objective:The project aims to develop and promote market environment for introducing energy efficient technologies and enhancing the use of renewable energy technologies in process applications in energy-intensive MSMEs in 5 sectors (brass, ceramics, dairy, foundry and hand tools). The project further envisions scaling up the activities to national level in order to reduce energy usage per unit of product, improve the productivity and competitiveness of units, thereby reducing overall carbon emissions and improving the local environment.

Project Overview: Theprojectis designed to increase the uptake of energy efficient and renewable energy technologies in 12 MSME clusters in India under 5 sectors. Presently the project is being executed in 11 clusters as detailed below:

S. No.





Jamnagar, Gujarat



Khurja, Uttar Pradesh



Morbi, Gujarat



Thangadh, Gujarat









Belgaum, Karnataka



Coimbatore, Tamil Nadu



Indore, Madhya Pradesh


Hand tools

Jalandhar, Punjab


Hand tools

Nagaur, Rajasthan


Project Components: 

• Increased capacity of suppliers of EE/RE product suppliers/ service providers/ finance providers.

• Increasing the level of end-use demand and implementation of EE and RE technologies and practices by MSMEs.

• Scaling up of the project to a national level.

• Strengthening policy, Institutional and decision making frameworks.


Desired Project Outcomes: Successful implementation of project would result in fulfilment of the following outcomes:

• Creating a scope for energy savings, by increasing the level of end-use demand and implementation of energy efficiency and renewable energy technologies and practices by MSMEs

• Encouraging the use of renewable energy in various industrial applications

• Improving the productivity and competitiveness of units 

• Reducing overall carbon emissions and improving the local environment 

• Increasing the capacity of energy efficiency and renewable energy product suppliers, service providers, finance providers

• Strengthening policy, institutional and decision-making frameworks

• Scaling up of the project to a national level.

Project Achievements 2018 – 2019

  • Inter-cluster visit organized for Belgaum Cluster to Rajkot cluster
  • Organized project launch workshop at Kerala Dairy Cluster in August 2018
  • Appointed Cluster Leader in Kerala cluster.
  • Various activities of capacity building of local service providers carried out in all clusters through CII & TERI.
  • Various cluster level activities (such as walk-through energy audits, detailed energy audits, knowledge dissemination workshops) organized in Morbi, Kerala and Sikkim clusters through DESL & CII.
  • As part of the activities in the cluster,
    • developed customized training materials, BOP booklets
    • developed 120 DPRs have been developed through for introducing EE technologies in the clusters
    • organized four workshops in each cluster for LSPs with minimum 20 participants in each workshop
    • Conducted 2 energy audits in Sikkim, 6 in Kerala and 20 in Morbi cluster.
  • Organized 9 (11 overall) cluster-specific no-cost 3-days residential capacity building-cum-training workshops on “Best Operating Procedures for energy management in MSMEs” for Cluster Leaders and cluster people, at National Productivity Council, Chennai.
  • Completed 8th Project Steering Committee meeting.
  • International study tour to New Zealand organized for dairy sector (Kerala, Gujarat & Sikkim clusters).
  • 21 demo-projects sanctioned for implementation. Agreement signed with 16 units for implementation. The technologies are at different stages of implementation.
  • Cluster-specific wall calendars developed for wider reach and knowledge dissemination in the clusters.
  • A desk-calendar on project activities and achievements so far also developed.
  • EMC has been established in 3 more clusters – Morbi, Kerala and Sikkim
  • As a new initiative, 2 ‘Energy Clinic’ organized in Coimbatore cluster to discuss “BOP and EE in Induction Furnace for foundries”
  • Organized stakeholder consultation workshop to take suggestions on deciding the scope of work for Component 3 & 4
  • As an outcome of its activities, the project has till date achieved 8740 tonne of oil equivalent energy saving/year to the tune of  Rs. 4526 Lakh monetary benefit/year. This has also avoided 50170 tonnes/year anthropogenic carbon emissions into atmosphere.
  • Till date, there has been an investment of Rs. 6076 Lakh from the MSMEs towards small scale energy efficiency measures, which reflects their interest towards the energy efficiency.