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UNDP to promote energy efficient production in small scale steel industry

Updated: Nov 16, 2013 01:24:33pm
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New Delhi, Nov 16 (KNN)  In an effort to promote energy efficiency and reduce emission of greenhouse gases among small scale steel re-rolling mills, the United Nations Development Programme (UNDP) has embarked on a project in partnership with AusAID and the Indian government.

In this context, UNDP has invited proposals from reputed organisations who are engaged in energy efficiency.

The project is a part of the programme “Baseline energy measurement in SRRM unit” started by UNDP towards up-scaling energy efficient production in the Indian small scale industries (SSIs).

The objectives of the programme comprise increase end-use energy efficiency of Steel Re-rolling Mills (SRRM) sector, reduce associated emissions of greenhouse gases from this sector and enable the penetration of environmentally-sustainable, energy-efficient technologies to remove barriers in large-scale commercialization of energy efficient technologies in the sector.

The project also envisions the commissioning of 50 SRRM model units with eco-tech packages and developing 40 pipeline units to enable adoption of energy efficiency measures. 

Steel production is an energy-intensive process. It takes nearly 56-66 litres of furnace oil (or 226-269 kg of coal) and 165-192 Kilowatt-hour (KWh) of electricity to produce one ton of steel. The production of one ton of crude steel from iron ore generates about 1.2 tons of solid waste and approximately 2.5 tons of carbon dioxide and other pollutants.  

Among India’s small and medium enterprises (SMEs), there are more than 1,800 steel re-rolling mills (SRRM), a majority (75 per cent) of which are small-scale units.
The SMEs engaged in steel re-rolling constitute an important link in the overall supply chain of steel, contributing more than 57 per cent of steel produced in the country.

However, these mills have grown haphazardly, utilizing outdated technologies, and are characterized by high production costs and low investment in upgrading technologies or research and development.

The direct energy use in this sector includes fossil fuels (furnace oil, natural gas and coal) and electrical energy is estimated to account for 25-30 per cent of the overall production costs. (KNN/ST)

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