Upscaling Energy Efficient Production in Small Scale Steel Industry in India

What is the Project About

The project, in partnership with the Government of India and supported by AusAid, aims to upscale energy efficient interventions in the steel re-rolling mills sector and other sub-sectors of the small scale steel industry in India. This will enable mitigation of GHG emissions and lead to improvement in productivity.

What are the Planned Activities

What are the Planned ActivitiesPhoto: UNDP India
  • 287 [against a target of 300] steel units adopted energy efficiency measures. The units received technical assistance to implement energy efficiency. Each unit received the following
    • Baseline measurement report for 2 days [approximately 16 hours] and a report on eight key parameters relating to energy, production, productivity, burning losses etc.
    • Report consisting of customized solutions
    • Knowledge inputs regarding cost-benefits of interventions, vendor list to steel unit management by technical experts
    • Post implementation measurements similar to baseline measurements
    • Financial incentive for the units that have complied to achieving the set goals
  • In addition to upscaling already proven technologies in 280 steel rerolling mills which were called E2 units. These units were able to demonstrate reduction of coal from 84 to 65 kg per tonne of steel and 110 to 100 kWh per tonne of steel.
  • As demanded by the sector, the project worked in identifying some new technology packages. They are, High performing insulation for re-heating furnace, Effective furnace atmosphere control through automation, Coal drying using waste heat available in flue gas, Energy efficiency in motion control for SRRM and Power generation through waste heat utilization from flue gas. Except the last one, all others were tested in three steel units which were called Lead SRRM units. These units were able to demonstrate reduction of coal from 80 to 52 kg per tonne of steel.
  • Technology packages namely, Installation of shredding machine and shredded scrap charging through bucket or vibro-feeder, Replacement of coil cradle of old furnace, Installation of Continuous Casting Machine for billet making, Sintering panel for sintering heat, Scrap preheating and Ladle preheating were formulated and tested in four Induction furnace units. The interventions reduced nearly 100 kWh of electricity per tonne of steel produced.
  • In all the 287 secondary steel units’ implemented energy efficiency. They together invested 15 million USD. Thus for every dollar of grant, 3.85 USD was invested by steel units. The payback on investment was 12-18 months. The investments have lead to the following benefits
    • Saved 24% specific energy consumption.
    • Reduced 260,000 tCO2 annually.
    • Reduced energy cost of INR 123 crore to all 287 the units
  • Following knowledge products (case study, operating manual and documentary) developed, namely
  • An e-network ( and ) were used extensively to interact with key participant steel units and helped in professional consultations with stakeholders. 

Funding Support by

Donor Name Amount Contributed
United Nations Development Programme US$ 1,159,784
US$ 697,219
Ministry of Steel
US$ 583,174



Expenditure in Previous Fiscal Years

Year Amount
2015 US$ 809,846.20
2014 US$ 1,070,278
2013 US$ 210,740




Stories of Change

Innovating to Achieve Energy EfficiencyPHOTO: SHASHANK JAYAPRASAD/UNDP INDIA

Innovating to Achieve Energy Efficiency
Companies in the highly polluting steel-rerolling sector in India are introducing measures to improve energy efficiency as a result of a partnership between UNDP and the Ministry of Steel. In doing so, they are demonstrating that the industry can become more energy efficient, more environmentally conscious and more profitable. Mr. Haoliang Xu, Assistant Administrator and Regional Director, UNDP visited one such success story in Jaipur, Rajasthan and saw first-hand how the company has innovated to improve productivity and reduce specific fuel consumption.  




Upscaling Energy-efficient Production in the Secondary Steel Sector in India
This publication documents the efforts undertaken by the Ministry of Steel, Government of India, and the United Nations Development Programme to fast-track the implementation of energy efficiency measures in the secondary steel sector in India. The upscaling steel project managed to increase the number of energy-efficient small-scale steel units from 34 to 300 in 30 months. This document also captures how innovations in the execution of a programme can lead to desired results.



Rolling in Profits: A Reference Manual on Energy-Efficient Technologies and Practices for Profitable Steel Rolling
The ready-reference publication provides information on various technologies that could make steel rolling in India energy efficient and even reduce the cost of energy consumption, making it cost effective.


Compendium of Energy Efficient Technology Measures for Electric Induction Furnace (EIF) Sector
The compendium contains selected list of energy efficient technology packages and practices that will help in improving the energy efficiency in secondary steel electric induction furnace (EIF) units. 


Energy Efficient Technology Packages
The report highlights different energy-efficient technology packages that will enable steel re-rolling mills to reduce their specific energy consumptions and reduce associated greenhouse gas emissions.


Contributing to Energy Saving: Recognition to UNDP

Contributing to Energy Saving: Recognition to UNDP
28 June 2014 - S.N. Srinivas, Programmme Officer with UNDP India has been awarded the Hitech’s 2014 India’s Leading Energy Saving Expert Award for his contribution to energy saving in the steel sector. The Award was presented by HITEC India, a non-profit organization that aims to promote IT solutions, next generation networks and enabled services to India. The Awards recognize experts across industrial sectors that have made a significant contribution to using technologies to address the complex problems facing industry and Government in India. 

Press Releases

Launch of Project ‘Upscaling Energy Efficient Production in Small Scale Steel Industry in India’

Improved Energy Efficiency in Steel Re-rolling Sector Results in Higher Profits and more Jobs
25 November 2013, New Delhi - Recognizing the success of a Ministry of Steel partnership with UNDP in helping small-scale steel re-rolling units reduce energy consumption by up to 30 percent, a new project will expand this partnership across the country. The scale-up is being supported by the Ministry of Steel, UNDP and the Australian Agency for International Development.  

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