This market-based mechanism included approximately 478 facilities from eight sectors in its first cycle from 2012-2015 and these units were mandated to reduce an average of 5% on their energy intensity. The second cycle began in 2016 and has included more facilities in additional sectors including petroleum refineries, power distribution and specific railway facilities.
Targets for improvements in energy efficiency are set under section 14 of the Energy Conservation Act, 2001 in a manner that reflects fuel usage and the economic effort involved. The Government, in March 2007 notified units in nine industrial sectors; namely aluminium, cement, chlor-alkali, fertilizers, iron and steel pulp, paper, railways, textiles and thermal power plants, as Designated Consumers (DCs).
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