Cabinet approves Rs 235.35 crore for energy efficiency mission

NEW DELHI: The cabinet Thursday approved the implementation plan of the National Mission for Enhanced Energy Efficiency which could lead to reduction in greenhouse gas emissions and savings of crores of rupees of energy expenditure.

A government statement said the cabinet approved expenditure of Rs.235.35 crore for the energy mission, which aims to create and sustain markets for energy efficiency in the entire country.

"These initiatives will result in fuel savings of around 23 million tonnes of oil equivalent (MTOE) and reduction in Green House Gases ( GHG) emissions of 98.55 million tonnes," it said.

Prime Minister Manmohan Singh chaired the cabinet meeting.

The national energy mission has several initiatives, including a market-based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries.

It has also plans to develop fiscal instruments to promote energy efficiency namely Framework for Energy Efficient Economic Development.

Speaking after the cabinet approval, Power Minister Sushil Kumar Shinde said" "The nod for NMEEE is an important milestone in our quest to promote energy efficiency and a major step towards energy securit".