VIJAYAWADA: Noting that unattractive interest rates were deterring industries from investing in energy efficiency (EE) projects, the state government has requested the Centre to introduce an interest subvention scheme to help attract entrepreneurs in industries sector, particularly MSMEs, to take forward EE initiatives.
Energy secretary Srikant Nagulapalli has shot off a letter to Union Ministry of Power urging it to provide at least five per cent interest subvention as a part of a programme planned to be rolled out by the Bureau of Energy Efficiency (BEE).
In his letter to the secretary of Union Ministry of Power dated July 9, Srikant Nagulapalli said that MSME units suffered economically due to COVID-19. He observed that energy costs account for major share in MSMEs’ expenditure and hence EE has a large impact in boosting their economic conditions.
“Energy efficiency financing at attractive interest rates will play a pivotal role in achieving the targeted energy savings. The AP government has pursued with many industries to implement EE projects but as interest rates are not attractive, many industrial representatives are not willing to come forward,” he explained.
Since union ministry of power’s BEE was planning to introduce an interest subvention scheme for large industries as well as for MSMEs to provide finance for energy efficiency projects, the state secretary requested, “In view of the above, it is requested to ensure providing at least five per cent interest subvention in the proposed scheme planned by the ministry which will attract many entrepreneurs to implement EE projects, ultimately helping the state as well as the nation achieve EE objectives.”
The secretary also took the opportunity to inform that AP was proactively taking up EE activity to achieve substantial energy savings to the tune of 25 per cent (15,000 Million units (MU)) of the total annual energy demand of 61,818 MU in areas of commercial, domestic, municipal, Industrial and agricultural sector etc. He noted that the state has so far saved around 2,932 MU with monetary savings of around Rs 2,014 crore.
Srikant further informed that ECBC-2017 code was made mandatory for all commercial buildings and that the staff of housing, ward and village secretariat departments was being trained in ECBC Residential Code. A “Model Super ECBC building” is also being taken up in Visakhapatnam with support of BEE and the state government, he added.
Energy Efficiency steps save 2,932 MU in Andhra Pradesh
AP was proactively taking up EE activity to achieve substantial energy savings to the tune of 25 per cent (15,000 MU) of the total annual energy demand of 61,818 MU in areas of commercial, domestic, municipal, Industrial and agricultural sector. The state has so far saved around 2,932 MU worth around Rs 2,014 crore.