Energy development agency to guide SMEs how to cut operating costs

The meltdown-hit small and medium enterprises (SMEs) can now see some light at the end of the tunnel. The Gujarat Energy Development Agency (GEDA) has decided to conduct an energy audit of nearly 5,000 SMEs...

Written by Express News Service | Vadodara | Published:January 22, 2009 1:51 am

The meltdown-hit small and medium enterprises (SMEs) can now see some light at the end of the tunnel. The Gujarat Energy Development Agency (GEDA) has decided to conduct an energy audit of nearly 5,000 SMEs,showing them the way to conserve energy so that they can cut operating costs.

By the end of the current financial year,GEDA will do “walk through” energy audit in 1,000 SMEs. The rest will be done in the next financial year. The Agency will have its own set of auditors for the work and will charge a nominal amount.

“We have come up with the energy audit scheme where the SMEs can register with us. We will just walk through and check the status of machines and the power consumption,and then sit with the company officials to suggest changes. This can help in conservation of energy and bring in more efficiency,” said V H Buch,director,GEDA.

The industrial sector consumes over 35 per cent of the energy used in Gujarat,including thermal and electrical,with SMEs form a major part of the total consumption. The consumption by SMEs also constitutes a significant portion of the total manufacturing cost.

“To help SMEs sustain,it is very important that they cut down on the cost of energy. Reduction in energy consumption through efficiency improvement in SMEs will enhance their profitability,” he added.

The audit will not only check the energy consumption,but also the equipment being used by the SMEs.

The major consumption of energy is in the SMEs related to the cement industry,iron re-rolling,pharma and pulp manufacturing. The SMEs that consume less than 200 KV of energy will be covered under the scheme. Those above it

have to go for a compulsory auditing.

There are nearly three lakh SME units in Gujarat and their share exceeds 30 per cent of the total manufacturing and exports of the state.

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