By IANS
New Delhi : The energy-intensive Indian industry is poised for large-scale switchover to more energy-efficient technologies in the face of high oil prices but is hampered by lack of cheaper funds, says an industry body.
“There is a massive bid to switch over to energy-efficient and non-oil technologies, for which industry is clamouring for cheaper loans to finance the adoption of these technologies,” said the Federation of Indian Chambers of Commerce and Industry (Ficci).
“Alongside, there is accent on ‘energy audit’ and focus on energy conservation and productivity management,” said the Ficci survey “Emerging Oil Price Scenario and the Indian Industry” whose key findings were released Sunday.
The survey found the industry was looking for further cuts in duty and excise on petroleum products.
“There is a near unanimous view among industry members that the government should look at a floating tariff regime for oil products,” the survey said.
“While Indian companies readjust to the high-price scenario and adopt a medium- to long-term strategy, they suggest that in the forthcoming budget the government should announce a ‘new fund’ for providing subsidised loans to industry for switching over to energy-efficient technologies,” the Ficci survey said.
“Such a move by the government would give impetus to the efforts of companies to invest in energy-saving technology and equipment.”
The survey elicited responses from 163 companies with a wide sectoral and geographical spread and with different oil consumption intensities.
Segments like alkali chemicals, fertilisers, iron and steel, glass, cotton textiles, synthetic textiles, plastic and plastic products, castings and forging and logistics were the most vulnerable to high oil prices, the survey said.