CII – EXIM BANK CONCLAVE ON INDIA – AFRICA PROJECT PARTNERSHIP ENERGY EFFICIENT TECHNOLOGIES IN MANUFACTURING UNITS

1. CII – EXIM BANK CONCLAVE ON INDIA – AFRICA PROJECT PARTNERSHIP ENERGY EFFICIENT TECHNOLOGIES IN MANUFACTURING UNITS “Role of Energy Efficiency in small scale steel industrial units in India” A.C.R. DAS Industrial Advisor , Ministry of Steel Government of India UNDP/GEF- Project (Steel)

2. World steel production in 2011 was 1,527 million tonne and India produced 72 mt. 4th from the top of the list (China, Japan, USA) • Decadal growth rate in India varies in the range of 8-10% • India will reach to 2nd position ie; next to China in steel production in the terminal year of 12th plan and expected to produce 200 mt by 2020. • Production (finished steel) from private sector is 80% in 2010-2011. Out of which, the SME sector contributes 46% • The above indicates a tremendous growth potential of steel sector in India. • With the increase in production. energy consumptions and GHG emissions will also increase correspondingly. As per available information, global carbon emission at present is around 25.2 billion tonne /year, out of which Indias contribution is around 1.0 billion tonnes / year (4%). The steel sector contributes 150 million tonnes / year (15%), out of which SRRM sector contributes 16 million tonnes / year (11%). introduction UNDP/GEF- Project (Steel)

3. Direct Reduction Iron Units (DRI) – 420 Units Induction Furnace – 1174 Units Electric Arc Furnace (EAF) – 48 Units Re-rolling Mills- 1794 Units The Energy Efficiency of Indian Steel Industry is improving with adoption of energy efficient technologies and practices. Ministry of Steel in collaboration with UNDP/GEF took up an initiative to implement Energy Efficiency Improvement Project in the Steel Re-rolling Mill Sector by intervention of Energy Efficient Technology and removal of barriers in 2004 SME Steel SECTOR IN INDIA

4. The global objective is to reduce GHG emissions by improving end-use energy efficiency levels in SRRM sector. The immediate objective is to accelerate penetration of environmentally sustainable energy efficient technologies. Remove key-barriers to energy efficiency measures in the sector. Enabling environment for the industry to adopt energy efficient, economically viable & environmentally sound technologies. Setting up Model units and implement technology packages in major geographic clusters of SRRM. Emphasis on Technical Assistance for sustaining “Best Practices” Success of Model units along with removal of barriers is expected to promote large scale replication of technology package in SRRM sector and induce policy changes. Project Goals & Objectives UNDP/GEF- Project (Steel)

5. Energy Efficient Technologies for Steel Re-Rolling Mill Sector UNDP/GEF- Project (Steel)

6. Benefits to Model Units TechnicalBenefits . Implementation of 5 S-Lean Manufacturing Identification of existing problems Electrical Energy Audit Development of SOP & SMP Performance Improvement Training UNIT Implementation of ISO 9001 and ISO 14001 Evaluation of Roll Pass Design Electrics Capital Subsidy of 25% investment subject to max of 30.0 /75.0 lakhs Reimbursement of the cost of consultancy upto a maximum of Rs. 5,00,000 Financial Benefits UNDP/GEF- Project (Steel)

7. PROJECT TARGETS UNDP/GEF- Project (Steel)

8. Almost 50 Model units have been selected in all over the country out of which 25 units have been commissioned with Energy Efficient Technology & Design Suggested by our project team. • With the Post-Commissioning data available, following reduction has been achieving • Furnace Oil : 20-25% • Pulverized Coal : 15-45% • CO2 emission : 4000 – 10,000 t/annum. in each unit. • 68,000 Training Manuals were prepared in association with SAIL(MTI) and all these manuals have been distributed to 1000, SRRM units in the country. • Class Room training program were held in various clusters, in which more than 2500 people were trained. • On-job training programs have been conducted in 22 Model units covering all clusters, almost 20 persons in each program participated. • Awareness CD has been prepared on 1o Technology Packages & 19 Eco-tech options for Rolling mills. 1200 copies were made and distributed. Major Achievements UNDP/GEF- Project (Steel)

9. 25 National Awareness Workshops are held so far, in different parts of the country. • 5S lean manufacturing system in 10 Model units have been implemented and 10 more units will be taken up this year. This activity is a part of Best Practice Programme. • SOP & SMP Base documents were prepared and implemented in 5 Model Units. 1000 CD has been sent to SRRM units. • Electrical Energy audit was conducted in 20 Model Units and the reports submitted by the consultant. • Feasibility Study was carried out in 20 Pipeline units and reports submitted by the consultant. • The M/s Pulkit Steel, Pondichery a Model unit is the first steel Rolling mill in India who installed a gasifier based on Biomass and has successfully commissioned on 9th July, 2009. It is noted that about 8,000t CO2 emissions will be reduced annually from his unit. Subsequently, several SRRM units are replicating this technology. UNDP/GEF- Project (Steel)

10. CONCLUSION Based on the data available, it is found that the Project is moving in the Right direction and will achieve the target of CO2 reduction as envisaged in the Project Documentamounting to about 36 million tonnes over the project life cycle of 20 years with 40% replication UNDP/GEF- Project (Steel)

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