Agricultural Sector

The farmers in the country have installed about18 million pumps operated by diesel/electricity.

It is necessary to provide the much needed irrigation to the crops but, unfortunately, the

pumping systems adopted have remained inefficient and the consumption of electricity and

diesel has been 50 to 100 percent more than what it should be. The excessively wasteful

consumption of energy in the agricultural sector has to stop both for conserving energy per se

and reducing the irrigation cost for the farmers. There has been an increase in the absolute

consumption of energy in agricultural sector. The electricity consumption has grown at the rate

of 14.4% per annum whereas the oil consumption has increased at the rate of10.1% per annum.

Transport Sector

The sector uses, nearly thirty two percent of the commercial energy. This sector is second only

to industrial sector. Further, this sector is heavily dependent on petroleum products. Import of

petroleum is nearly 35percent of total expenditure on imports in India. Its consumption is

increasing at an annual rate of 6 to 8percent. Automobiles thus offer one of the most promising

areas for major savings. to the report of Advisory Board on Energy the conservation potential in

transport sector is nearly 20%which can be achieved by an investment of Rs. 890crores.

Domestic Sector

In domestic sector the maximum consumption of electricity is in lighting. The upcoming

challenge is to provide efficient lighting technology product to far rural area for energy

conservation in domestic sector.

Industrial Sector

Industries consume maximum energy. In general Indian industries are highly energy inefficient.

However, during last 6 to 8 years some major industries have paid attention towards energy

conservation medium and small scale industries are, by and large.

a. Iron And Steel

Indian steel plants have full-fledged fuel economic departments for monitoring and controlling

the plant performance. Of late, there is a growing concern as evidenced by the performance of

steel Authority of India (SAIL) plants which have shown a reduction of specific energy

consumption the industry has drawn an action plan for energy conservation in coke ovens,

sinter plants, blast furnaces, reheating furnaces, utilities etc.

b. Fertilizer

During the last 6 to 7 years number of plants has taken measures to reduce consumption and

have met with a good deal of success. The units have been allowed to retain the benefits of

investments towards energy conservation for a period of six years. Energy saving to the tune of

5 to 10% has been reported by a number of units who have implemented short and midterm

measures. Energy conservation potential in this sub sector is estimated to be 10-15 percent.

c. Cement

A number of energy audit studies carried out by various agencies, have revealed the energy

conservation potential to the tune of 10-15%. Thus, pre-calcinatory technology which can use

coal with high ash content can reduce the specific energy consumption besides improving

productivity in the range of 30 to 50% for cement plants.

d. Textile

Energy Conservation studies by textile research associations, national Productivity Council

(NPC) and others have brought out that there is a possibility of reducing the energy intensity in

Indian Textile Industry by 20 to 25%.

e. Petroleum Refining

India is producing nearly 30 million tons of indigenous crude against the demand more than

50million tones accounting for 60% indigenous production. The demand of petroleum products

is growing at an average of 8% per year. Therefore, any effort of saving of precious petroleum

products will help other development activities.


The energy strategy for the future could be classified into immediate, medium-term and long-

term strategy. The various components of these strategies are listed below:

Immediate-term strategy:

 Rationalizing the tariff structure of various energy products.

 Optimum utilization of existing assets

 Efficiency in production systems and reduction in distribution losses, including those in

traditional energy sources.

 Promoting R&D, transfer and use of technologies and practices for environmentally

sound energy systems, including new and renewable energy sources.

Medium-term strategy:

 Demand management through greater conservation of energy, optimum fuel mix,

structural changes in the economy, an appropriate model mix in the transport sector,

i.e. greater dependence on rail than on road for the movement of goods and passengers

and a shift away from private modes to public modes for passenger transport; changes

in design of different products to reduce the material intensity of those products,

recycling, etc.

 There is need to shift to less energy-intensive modes of transport. This would include

measures to improve the transport infrastructure viz. roads, better design of vehicles,

use of compressed natural gas (CNG) and synthetic fuel, etc. Similarly, better urban

planning would also reduce the demand for energy use in the transport sector.

 There is need to move away from non-renewable to renewable energy sources viz.

solar, wind, biomass energy, etc.

Long-term strategy:

 Efficient generation of energy resources

• Efficient production of coal, oil and natural gas

• Reduction of natural gas flaring

 Improving energy infrastructure

• Building new refineries

• Creation of urban gas transmission and distribution network

• Maximizing efficiency of rail transport of coal production.

• Building new coal and gas fired power stations.

 Enhancing energy efficiency

• Improving energy efficiency in accordance with national, socio-economic, and

• Promoting of energy efficiency and emission standards

• Labeling programs for products and adoption of energy efficient technologies in

environmental priorities

large industries.


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