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Govt setting up company for energy efficiency schemes

The government is considering setting up a new company, Energy Efficiency Service Ltd (EESL) to oversee and implement schemes in this field.

business Updated: Jul 27, 2009 18:47 IST

The government is considering setting up a new company, Energy Efficiency Service Ltd (EESL) to oversee and implement schemes in this field.

The EESL will be "a joint venture company with equity participation of 25 per cent each from its promoter including NTPC, PowerGridCorp, Rural Electrification Corp and Power Finance Corp", Minister of State of Power Bharatsinh Solanki said in the Rajya Sabha on Monday.

In reply to a question by Dharam Pal Sabharwal, he said the company "will provide implementation leadership in the area of energy efficiency and also undertake implementation of energy efficiency schemes", Solanki said.

"The company will act as energy service company for certain schemes, as a consultancy organisation for CDM (Clean Development Management) projects in the industrial sector and as a resource centre for training and capacity building of utilities and other stakeholders", he said.

The minister informed the House that "a consolidated business plan has been prepared taking into account the above role of EESL which indicates the economic viability of the company based on said schemes and with a projected Internal Rate of Return (IRR) of 22 per cent."