Objectives:

• To evolve a strategy of incentivising the steel rerolling industry for long term sustainability of GEF objectives
• To recommend an operational mechanism to implement the incentive structure for realizing the goal of energy efficiency improvement in the industry on continuing basis

Scope of work:

• strategy to develop flexible instruments to promote energy efficiency by mobilizing the market
• review central/state level policies, impact of excise/custom duties etc.
• identification of various incentive schemes (India / International)
• develop financial mechanisms to encourage investments for modernization on continuing basis to achieve energy efficiency
• suggest mechanism for voluntary agreements between industry and state/central Govt.

Accomplishments:

• Various incentive structures and mechanisms applicable to other SME segments in India, and successful models were collated and reviewed.
• Compiled information on experience of developed and other developing countries in the steel rerolling and allied sector on promotional measures for energy efficiency.
• Based on the above, a comprehensive incentive structure was developed which consisted of a range of both monitory and non-monitory incentives. These incentives were discussed in detail with the key stakholders such as the industry associations, FIs, bankers, service providers, and government departments with a view to validate and improve the identified incentives for implementation. Based on the discussions, the incentive mechanism was finalized.