Technology Innovation and Diffusion – Opportunities for CO2 Mitigation in Indian Small-Scale Industry Sector

Abstract:

The small-scale industry sector occupies a position of prominence in the Indian economy, contributing to more than 40% of the industrial production. There are nearly 13 million small-scale units in the country and a large number of such units exist as clusters, many of which are in urban and peri-urban areas. There are nearly 400 small scale industry clusters in India The small scale industry sector thus assumes an important role in the economy, as it is the backbone of the Indian manufacturing sector.

There are many energy intensive small scale sectors, which use commercial fuels like coal, oil and natural gas e.g. metallurgical/metal processing, glass and ceramics, brick making etc. Energy and environmental management in these small units assumes utmost importance as many of the small-scale units co-exist with residential areas and are a source of local pollution. In many cases, the units continue to use obsolete technologies that were developed in an era when energy was not a core issue. The poor energy and environmental performance is directly related to the lack of technical capacity in these enterprises to identify, access, adapt and adopt better technologies and operating practices. In addition, the units do not have the capacity to invest sufficient resources in technology innovation and development. Hence, intervention in this sector aiming at technology innovation and diffusion with a focus on developing country specific programs presents a good opportunity for reducing CO2 emissions.

The proposed paper/presentation would draw upon the results of a program that TERI initiated nearly a decade back in the Indian small-scale sector. The technological intervention program in some of the energy intensive clusters has lead to development and successful demonstration of energy efficient technologies at the field level. After an initial reluctance, many units have replicated these technologies, which has led to significant energy savings (nearly 75000 tonnes of oil equivalent). In addition to highlighting the mitigation efforts, the paper/ presentation would focus on the methodology/approach that can be adopted in promoting energy efficiency and innovation at the cluster level in developing countries.