Government creates fund to boost energy efficiency in states

The State Energy Conservation Fund will be built with contributions of at least Rs2 crore each from the various states. The Fund plans to promote and implement energy efficiency and conservation programmes

The Indian government has set up a green fund with an initial contribution of Rs2 crore to promote and implement energy efficiency and conservation programmes in the states, according to a power ministry official, reports PTI.

"It is important to work with the states in the direction of energy conservation. In order to implement energy conservation measures in a more effective way and with the involvement of different states, the State Energy Conservation Fund has been created with an initial amount of Rs2 crore," said Ajay Mathur, director of the Bureau of Energy Efficiency (BEE), an arm of the power ministry.

The Fund will be built with contributions from the states that will chip in at least Rs2 crore each towards the initiative, Mr Mathur added.

Although the plan has been put to action, the Fund would be fully operational only by fiscal 2011-12, he said.

However, several states have already sent requests for grants from the Fund. "So far, we have received proposals from Kerala, Haryana, Rajasthan and Chhattisgarh, which we are evaluating. Other states have also evinced interest in this direction," Mr Mathur said.

Further, the states have also indicated the creation of a State Defined Agency (SDF) for energy conservation on the lines of the BEE. The SDF is supposed to help Special Economic Zones and small-scale units become more energy efficient.

To meet the rising power demand, the government has targeted generating 1 lakh MW in the XII Plan Period (2012-17). The government also believes that energy conservation will be able to save about 25,000MW.


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