SMEs demand tech tonic to gain energy efficiency

NEW DELHI: The Bureau of Energy Efficiency���s (BEE) move to make star ratings mandatory from February 2009 has caught micro, small and medium electrical equipment manufacturers napping.

Unable to procure cost-effective technology, they have sought government support to meet the deadline. At present, the star ratings, which denote the level of energy efficiency, are voluntary.

���Though we principally support the bureau���s intent to develop energy efficient products, there is a lack of resources to implement the programme. SMEs don���t have resources like big manufacturers. They need hand holding,��� Federation of Indian Micro and Small & Medium Enterprises (FISME) secretary general Anil Bhardwaj said.

The star ratings programme is being implemented on voluntary basis by all major companies such as Godrej, Voltas, LG, Surya Roshni and Samsung.

However, home appliances, including air conditioners (ACs), refrigerators and tubelights are also manufactured by micro, small and medium enterprises locally. Given the high cost of technology, well-equipped laboratory and testing fee for energy efficiency, it has been difficult for them to comply with energy efficiency standards, he said.

While big players have a well-equipped lab to self-regulate the efficiency standards, there are only two labs accredited by National Accreditation Board for Testing and Calibration Laboratories (NABLs) in India where these small players can get their products tested. These labs charge testing fee of about Rs 40,000-50,000 for one sample product. Setting up own equipped lab would require almost Rs 3 crore, BEE secretary Saurabh Kumar said.

Although, Mr Kumar claims the ministry of power and BEE are considering measures to ensure the small scale industry does not suffer on the account and have taken up programmes to help such players, industry sources say little has been done.

A Delhi-based small scale manufacturer of refrigerators, ACs and other cooling products said: ���We have not yet received any support or communication from BEE in this regard. However, if they make it mandatory then we will try our best to comply.���

According to Mr Bhardwaj, before making it mandatory the government must support the small scale industry with proper communication about the technology, availability of loans, consultants and banks to be approached otherwise people will continue to flout these rules.

���The pharma industry has experienced similar situation in past when good manufacturing practices (GMP) requirement were notified and made mandatory. The government had to twice revive the deadlines. Without proper resources in place it will typically become inspector raj and people will exploit the law with money,��� Mr Bhardwaj said.

Refrigerators, ACs, florescent tubelights and distribution transformers are part of the voluntary labelling scheme. BEE also plans to soon bring in other products like electrical motors, televisions, computers, washing machines, CFL bulbs, submersible pumps and battery chargers.

���This scheme will not only reduce energy consumption for consumer but will also make manufacturers competitive in the global markets and enable them to venture into overseas markets effectively as all major countries have made energy efficient standards mandatory,��� argues Mr Kumar.

According to Mr Kumar, it is important to mandate the scheme because many manufacturers take advantage of lack of regulations in the country and produce energy efficient products for overseas��� markets and not the same for the Indian market.

As estimated by BEE, with the use of energy efficient appliances, the electricity saving for the country by 2012 could be up to 18 billion units, which is 4% of the current electricity consumption.