News & Management Updates

Steel Authority completed first assessment year under PAT

The PAT (Perform-Achieve-Trade) Scheme, a part of India's National Mission for Enhanced Energy Efficiency (NMEEE), is developed to improve energy efficiency of industry. The scheme is designed by Bureau of Energy Efficiency (BEE) under the Ministry of Power (MOP). The scheme is based on intensity targets for each of eight industrial sectors - Thermal power plant, Iron & steel, Cement, textile, Aluminium, Chlor-alkali, Ferlizer, Paper & pulp, announced on 30 March 2012. The DCs are asked to reduce their energy intensity or specific energy consumption to meet the target. If a DC exceeds its energy target the ESCerts (1 Energy Saving Certificate is equivalent to saving of 1 toe) will be issued. On the other hand, if it fails, it has to purchase ESCerts from other DCs. The first assessment period is 2012-2015.

The specific energy consumption depends on several factors such as type of technology, product mix, raw material quality, plant size, and plant capacity utilization. The specific energy consumption in Indian steel industry is 0.69 toe/tcs in 2007-08, and that for the world 0.45 toe/tcs. Higher energy intensity is due to use of outdated technologies of 60s and 70s, and use of inferior quality raw material (high alumina iron ore with high alumina/silica ratio, and high ash blended coking coal.

Please see in attached file, Table : Specific energy consumption in different plants of SAIL

According to PAT, the steel plants (DCs) will have to achieve their target intensities by 2015. The target intensity is decided as reduction from baseline on pro-rata basis. The baseline is assessed as three year's average, 2007-2010. SAIL complete the first year (2012-13) of the Assessment Period (2012-15).

According to a recent press release on 8 Apr 2013 from the Ministry of Steel, the current specific energy consumption during 2012 (Apr-Dec) shows the SAIL plants have a long way to go to meet the target. Incidentally, SAIL has several Energy Efficiency (EE) projects at various stages of implementation. It is hoped that once put in service, these projects will help reduce the Specific Energy Consumption.