The moment the country opened gates for liberalization a couple of decades ago, started the growing demand for electricity, an issue which is yet to be addressed fully.

Energy-intensive industries such as power, iron and steel, cement, fertiliser account for over 45 per cent of commercial energy use in India, to deliver 25 per cent of national GDP, as per the estimate of BEE.

For these businesses, energy constitutes a high proportion of input cost ranging from about 25 per cent in the case of iron and steel, 40 per cent in case of cement and fertiliser to almost 90 per cent in case of thermal power plants.

An assessment by the World Bank says Indian industry has seen greater energy efficiency improvement since the late 1980s than any other sector of the economy. Some of the reasons for this are the rise in competition following liberalization, high energy prices and the enactment of the Energy Conservation Act, 2001. This trend needs to be sustained. There is strong evidence to show that investment in energy efficiency pays back in a short period of time, while delivering a lasting impact on input costs.

The Prime Minister, in his address on National Energy Conservation Day, reiterated the need for measures to stimulate energy efficiency, and thereby enhance cost-effectiveness of commercial and industrial activities.

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