[Link].

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Forging Sector
EnergyofMapping
Energy Mapping – Sector
MSME Forging
National Report
Energy Mapping of the
Forging Sector

Bureau of Energy Efficiency,

(Ministry of Power, Govt. of India)
Forging Sector Energy Mapping – National Report November 2021
Forging Sector Energy Mapping – National Report November 2021

Imprints

Commissioned on behalf of:

Bureau of Energy Efficiency
Ministry of Power, Govt. of India
4th Floor, Sewa Bhawan, R.K. Puram
New Delhi 110 066, India

Study by:
PricewaterhouseCoopers Pvt. Ltd.
17th Floor, Building 10C, DLF Cybercity,
Gurgaon 122002

Version:
New Delhi, October 2021

Disclaimer:
This report has been prepared for general guidance on matters of interest only and does not constitute professional
advice. One should not act upon the information contained in this publication without obtaining specific professional
advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the
information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers India Private
Ltd., its members, employees, and agents do not accept or assume any liability, responsibility, or duty of care for any
consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this
publication or for any decision based on it.

© 2021 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, “PwC” refers to
PricewaterhouseCoopers Private Limited (a limited liability company in India), which is a member firm of
PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity
Forging Sector Energy Mapping – National Report November 2021

Acknowledgement

PricewaterhouseCoopers Pvt. Ltd. (PwC) places on record its sincere thanks to the Bureau of
Energy Efficiency (BEE) for vesting its confidence in PwC for carrying out this prestigious
assignment on “Energy and Resource Mapping for the MSME Forging Sector in India”.

The team extends its profound thanks to Mr. Abhay Bakre, Director General (BEE),for his
leadership and guidance during the execution of the assignment. The team recognizes and
extends its sincere gratitude to Mr. R.K Rai, Secretary (BEE), for his invaluable inputs provided
during the many interactions and deliberations. PwC acknowledges the co-operation and support
extended by Mr. Milind Deore, Director (BEE) and Mr. Palraj Shyam Sunder, Joint Director (BEE)
in providing their inputs, thoughtful comments and directions throughout the execution of the
assignment. The team appreciates valuable inputs received from Mr. Jitendra Sood (Technical
consultant, BEE) during the entire project. Team also places on record our thanks to Mr. Bibek
Ranjan, Project Engineer (BEE) for his support. PwC also acknowledges the support provided by
the SDA’s (PEDA, MEDA, KREDL, GEDA, TANGEDCO) during the study and stakeholder
consultations.

We extend our sincere gratitude to the industry associations consulted during the assignment -
AIFI (National Association) along with regional chapters, Punjab Forging Association and
Chamber of Industry and Commercial Undertaking (Ludhiana), Federation of Indian exporter
Association (Jalandhar - Phagwara), Peenya Industry Association (Bangalore), IamSMEofIndia
(Delhi-NCR), Shapar Veraval Industry association (Rajkot).

We are also grateful to the esteemed forging units who participated in the study, technology
suppliers, and various institutions including NSIC and NIFFT for their wholehearted support and
cooperation for the various consultations and deliberations during the study and preparation of
detailed energy audit reports.

Last but not the least, PwC is grateful to the in-house team of PwC for their consistent efforts in
bringing this report to fruition.
Forging Sector Energy Mapping – National Report November 2021

Table of Contents

1. Introduction ........................................................................................................................... 1
2. Forging sector overview ....................................................................................................... 5
3. Energy consumption and benchmarks ............................................................................. 20
4. Energy Efficiency Potential in forging sector ................................................................... 29
5. Recommendations and Implementation Plan ................................................................... 42
Annexure ................................................................................................................................. 65
A. Production process and technology adopted ........................................................... 67
Type of production processes in forging units ..................................................................... 67
Technologies used in forging............................................................................................... 72
B. Energy Efficiency Technology compendium............................................................. 83
EE technologies for metal reheating, heat treatment and forging process ........................... 86
EE retrofits (Utilities) ........................................................................................................... 98
State of the Art Technologies in Metal Forging .................................................................. 104
Best Operating Practices................................................................................................... 110
C. Strategies for Decarbonization and Circular Economy .......................................... 119
D. Existing EE Policy initiatives and programmes for the sector ............................... 126

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Forging Sector Energy Mapping – National Report November 2021

List of Tables

Table 1: Installed capacity and Production details forging ............................................................................... 6

Table 2 Details of the Delhi NCR- Forging cluster ........................................................................................... 11
Table 3 Details of the Ludhiana Forging cluster ............................................................................................... 11
Table 4 Details of the Pune Forging cluster ..................................................................................................... 12
Table 5 Details of the Rajkot Forging cluster ................................................................................................... 13
Table 6 Details of the Chennai Forging cluster ............................................................................................... 14
Table 7 Details of the Bengaluru Forging cluster ............................................................................................ 14
Table 8 List of key industry associations ......................................................................................................... 16
Table 9 EnPIs related terms and definitions .................................................................................................... 21
Table 10: Summary of BoPs and EE technologies for different forging processes ....................................... 26
Table 11: Fuel mix for the different forging clusters (five clusters) ................................................................ 30
Table 12: Energy share of different fuels in five forging clusters (Units - toe) .............................................. 30
Table 13: Production data for the FY 22 .......................................................................................................... 32
Table 14: Sector level energy consumption of the different metal and metal heating technology (FY 22) . 33
Table 15: Process specific replication potential of ECM across forging clusters .......................................... 34
Table 16: Utility specific replication potential of ECM across forging clusters .............................................. 35
Table 17: Summary of the energy saving potential for different metal .......................................................... 36
Table 18: Proposed long term Sector level SEC (kgoe/tonne) ...................................................................... 36
Table 19: Fuel consumption and Emissions proposed and BAU ................................................................... 37
Table 19: Additional electricity for technology transition (over and above BAU scenario) .......................... 39
Table 21: Comparison of metal heating furnace technologies ........................................................................ 73
Table 22: Comparison of metal heating furnace technologies ........................................................................ 74
Table 23: Comparison of metal heating furnace technologies ........................................................................ 77
Table 24: Comparison of metal forming technologies.................................................................................... 80
Table 25: Process specific replication potential of ECM across forging clusters ........................................... 84
Table 26: Utility specific replication potential of ECM across forging clusters ............................................. 85
Table 27: Case Study flash -less forging ......................................................................................................... 104
Table 28 Comparison of performance parameters and costs across burners ............................................ 107
Table 29: Best Operating practices for forging and heat treatment furnaces .............................................. 110
Table 30: Best Operating practices for Utilities in forging industry ............................................................. 110
Table 31: List of prominent technology vendors ............................................................................................. 116
Table 32: Solar energy generation potential across different stated with prominent forging clusters ....... 121
Table 33: Comparison of electricity tariff DISCOM / Open access .............................................................. 122
Table 34: Comparative analysis of the GRID power and RE power cost for different clusters .................. 123
Table 34: Key features of the CLCSS scheme ................................................................................................. 127
Table 35: Key features of the TEQUP scheme ................................................................................................ 128
Table 36: Major features and key takeaways from different schemes .......................................................... 133

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 Forging Sector Energy Mapping – National Report November 2021
of Figur es

List of Figures

Figure 1: Comparison of Asian forging Industry................................................................................................ 5

Figure 2 Share of the forging products in different sector ................................................................................ 6
Figure 3 Distribution of forging Industries ........................................................................................................ 7
Figure 4 Forging process and % share in Industry ............................................................................................ 7
Figure 5: Key challenges for the forging industry .............................................................................................. 9
Figure 6 Forging clusters in India .................................................................................................................... 10
Figure 7: Share of energy uses in different forging processes ......................................................................... 22
Figure 8: SEC benchmarks for different forging clusters across the country ................................................ 23
Figure 9: SEC for different forging units using oil /gas fired furnaces for metal heating ............................. 23
Figure 10: SEC for different forging units using the Induction billet haters technology .............................. 24
Figure 11: SEC of forging units based on different operations ........................................................................ 25
Figure 12: Share of the energy based upon the metal forming operations ..................................................... 25
Figure 13: Energy share of different fuels across five clusters ...................................................................... 31
Figure 14: Share of the prominent metal heating technologies during FY 21-22 .......................................... 31
Figure 15: Share of production of based on heating technologies ................................................................ 32
Figure 16: Projections of energy consumption and savings ........................................................................... 36
Figure 17: Projected share of metal heating technologies ............................................................................. 37
Figure 18 Typical production process in forging units..................................................................................... 67
Figure 19: % share of metal heating technologies across prominent forging clusters ................................... 68
Figure 20: Installing IBH in place of Oil-fired furnace ................................................................................... 86
Figure 21: Low friction compressed air piping and fittings ............................................................................ 87
Figure 22 Automated control systems ..............................................................................................................88
Figure 23 Operation of Recuperative Burners ................................................................................................. 89
Figure 24 PLC automation system for Fuel to Air Ratio Control ....................................................................90
Figure 25 Hydraulic hammers .......................................................................................................................... 91
Figure 26: Application of veneering module in LPG Fired Normalizing Furnace ......................................... 92
Figure 27: Application of ceramic fibre insulation on hot surface .................................................................. 93
Figure 28: Relining of heat treatment furnace ................................................................................................ 94
Figure 29 VFD for Press Motors and Screw Press ........................................................................................... 95
Figure 30 Electrical furnace for heat treatment ............................................................................................... 96
Figure 31 Multi Axes CNC Machine .................................................................................................................. 96
Figure 32: IoT based real time energy management ....................................................................................... 97
Figure 33: FRP blade cooling tower ................................................................................................................. 98
Figure 34: Appropriate size compressor .......................................................................................................... 99
Figure 35: Low friction compressed air piping and fittings .......................................................................... 101
Figure 36: Efficiency v/s loading of motors ................................................................................................... 103
Figure 37 Flashless forging sleeve yoke .......................................................................................................... 104
Figure 38 Flash less forging connecting rod .................................................................................................. 104
Figure 39 Grain Structure Comparison .......................................................................................................... 104
Figure 40: Continuous forging lines comparative ......................................................................................... 105
Figure 41 Fully automated forging process .................................................................................................... 106
Figure 42: Oxyfuel burner ............................................................................................................................... 107
Figure 43 Operation of Regenerative Burners ............................................................................................... 108
Figure 44: Hydrogen fired oxyfuel burner ..................................................................................................... 109
Figure 46 Compressed Air Management System ............................................................................................ 113
Figure 45 Sub-optimal operation of compressors .......................................................................................... 113
Figure 47: Optimal capacity combustion air blower ....................................................................................... 114
Figure 48 Use of Cogged V-Belt ....................................................................................................................... 115
Figure 49 Working principle of Biomass gasifier ........................................................................................... 119
Figure 50 Biomass Gasifier installation ......................................................................................................... 120

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Abbreviations

AI Artificial Intelligence
AIFI Association of Indian Forging Industry
BEE Bureau of Energy Efficiency
BOP Best Operating Practices
CAD/E/M Computer Aided Design/ Engineering/ Manufacturing
CAGR Compound Annual Growth Rate
CEA Central Electricity Authority
cfm Cubic Feet per Minute
CICU Chamber of Industrial & Commercial Undertakings (Industry Association)
CLCSS Credit Linked Capital Subsidy Scheme
CNC Computer Numerical Control
COC Cycle of Concentration
DG Diesel Generator
DHI Department of Heavy Industries
DIC District Industries Centre
DISCOM Distribution Companies
DPR Detailed Project Report
ECM Energy Conservation Measures
EE Energy Efficiency/ Energy Efficient
EET Energy Efficient Technology
EnMS Energy Management System
EnPI Energy Performance Index
ESCO Energy Services Company
FO Furnace Oil
FRP Fiber Reinforced Plastic
GCV Gross Calorific Value
GEF Global Environment Facility
GST Goods and Services Tax
HSD High Speed Diesel
HT Heat Treatment
HVAC Heating, Ventilation and Air Conditioning
IA Industry Associations
IE International Efficiency standard
IGBT Insulated Gate Bi-polar Transistor
IoT Internet of Things
IRR Internal Rate of Return
ITI Industrial Training Institute
kgoe Kilogram of Oil Equivalent
KPI Key Performance Indicator
kWh Kilowatt-hour
LDO Light Diesel Oil
LM Lean Manufacturing
LMCS Lean Manufacturing Competitiveness Scheme
LNG Liquified Natural Gas
LPG Liquified Petroleum Gas
LSHS Low Sulphur Heavy Stock Oil

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Forging Sector Energy Mapping – National Report November 2021
Abbreviations

LSP Local Service Provider

ML Machine Learning
mmWC Millimetre of Water Column
MoMSME Ministry of Micro, Small and Medium Enterprises
MoP Ministry of Power
MOSPI Ministry of Statistics and Programme Implementation
MSME Micro, Small and Medium Enterprises
MU Million Units
MWh Megawatt-hour
NG Natural Gas
NIFFT National Institute of Foundry and Forge Technology, Ranchi
NIP National Infrastructure Pipeline
NPV Net Present Value
NSIC National Small Industries Corporation
PID Proportional Integral Differential Control
PLC Programmable Logic Control
PLI Performance Linked Incentive scheme
PPAC Petroleum Planning and Analysis Cell
PRGFEE Partial Risk Guarantee Fund for Energy Efficiency
RE Renewable Energy
REA Rajkot Engineering Association
SCM Standard Cubic Meter
SCR Silicon Controlled Rectifier
SDA State Designated Agency
SEC Specific Energy Consumption
SOP Standard Operating Procedures
TEQUP Technology and Quality Upgradation Programme
toe Tonne of Oil Equivalent
UNIDO United Nations Industrial Development Organization
VFD Variable Frequency Drive
VMC Vertical Milling Centre
VSD Variable Speed Drive
WB World Bank
WHR Waste Heat Recovery
ZED Zero Defect Zero Effect

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Forging Sector Energy Mapping – National Report November 2021

1. Introduction

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Forging Sector Energy Mapping – National Report November 2021

1. Introduction
Bureau of Energy Efficiency (BEE), a statutory body under the Ministry of Power, Govt. of India,
has notified broad policies for promotion of Energy Efficiency (EE) in India. Industrial segment
including MSME sector has remained one of the focus sectors of the BEE to enhance energy
efficiency. Several initiatives have been taken by BEE from time to time to promote the
competitiveness of MSME sector through sustainable use of energy, such as BEE SME program
and support for WB-GEF & UNIDO-GEF programmatic interventions.

These and similar initiatives have contributed to improve efficiency of MSME clusters in the
country. However, in quantitative terms, there is not much authentic information and data available
with respect to MSME’s energy consumption and energy saving opportunities. Also, prior
interventions in MSME sector were limited to specific clusters, and do not comprehensively cover
sector specific policy and implementation aspects.

In this context BEE has devised the “Energy and Resource Mapping Study” for 10 energy
intensive MSME sectors including Forging MSME sector. The study aims to identify the present
scenario of the forging sector in terms of energy consumption, applicable EE technologies,
readiness of the sector in adopting EE solutions and develop a sector level EE policy roadmap
for the Forging MSME sector. Following activities have been envisaged to execute this
assignment:
Field Studies

Review of Energy consuming processes & technologies

Calculated Specific Energy Consumtion benchmarks at process level
Identifying EE solutions, technologies and best pratices relevant to sector

Sector level energy mapping

Calculating energy consumption at sector level and future projections

Benchmarking Energy Consumption with clusters & international benchmarks
Estimating technology penetration level and EE potential at sector level

Energy efficiency policy roadmap

Mapping needs of the forging sector stakeholders at sector /cluster level

Technical, financial and capacity building interventions required
Policy and regulatory level recommnedations for forging MSME sector

Towards that objective, BEE has appointed PwC India to establish energy consumption patterns,
highlight opportunities for EE technology upgradation along with policy recommendations and
implementation plan for pacing up the EE initiatives in forging clusters across India including Delhi
NCR, Pune, Ludhiana, Chennai, and Bengaluru. To conduct this study, several initiatives are
carried out by PwC India which directly and indirectly benefitted the forging sector stakeholders:
• Detailed Energy Studies in 50 forging units along with recommendations for energy
improvement
• Analysed the Specific Energy Consumption benchmarks at sectoral/ sub-sectoral level

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Forging Sector Energy Mapping – National Report November 2021

• Identified Energy efficient technologies relevant to the sector and developed technology
roadmap
• Disseminated the learnings and created awareness on EE across forging MSME sector &
clusters
• Mapped the readiness of sector in adopting EE solutions and developed EE policy roadmap
Approach and Methodology
Based on our understanding of the objectives, we adopted a structured methodology that
comprised of desk research, field studies, stakeholder consultations followed by assessment and
analysis. Given the limitations associated with this desk-based study, the primary surveys and
field studies were primarily targeted to collect data on the sector and best practices that could
assist in EE projections.

We have followed the mixed approach of primary surveys, one-to-one consultations, workshops,
energy studies & secondary research as shown in below section to achieve the project outcomes:

1. Primary Surveys in 160 Forging covering 8 MSME clusters to collect information on

o Type of products manufactured and type of metal

o Metal reheating technology and type of forging

o Annual production and fuel-wise energy consumption

2. Field studies in 50 MSME Forging units covering 5 MSME clusters to analyze the
following

o Review of energy consuming processes & operations

o Calculate Specific energy consumption for processes

o Identify Energy Efficiency solutions to the MSME forging unit

3. Secondary research on energy benchmarks and relevant EE technologies

o Identified process specific national and international energy benchmarks

o Identified EE technologies relevant to the sector, techno-commercial feasibility

o Estimation of technology penetration levels and projections for EE potential

4. 10 Awareness creation workshops and 2 Stakeholder consultations

o 5 Inception workshops to explain about assignment objectives and project features

o 5 Dissemination workshops to share project learnings and understand cluster

needs

o 2 Stakeholder consultations to understand sector needs & develop EE policy

roadmap

5. One-to-one consultations with industry stakeholders to understand forging sector

needs

o Detailed discussions with AIFI regional and national chapters

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Forging Sector Energy Mapping – National Report November 2021

o One-to-one consultations with cluster level associations - Rajkot Engineering

Association; Shapar Veraval Industrial Association (SVIA) at Rajkot, Chamber of
Industrial & Commercial Undertakings (CICU) at Ludhiana etc.

o Consultations with technology suppliers, and local service providers

Building on the data collected, a deep dive analysis of sectoral energy outlook and EE reduction
potential was conducted. A dynamic excel model was developed to undertake the sub-sector level
analysis based on metal reheating furnace and metal forging technique from 2021 to 2031 to
estimate energy consumption in BAU scenario and energy intensity reductions in EE moderate
and ambitious scenario.

Recommendations
• Estimating
EE Projections in emissions
different reduction potential
scenarios at sectoral level
Estimating sub- and opportutines
sector level SECs • Defining Business for EE
as Usual (BAU) improvement
Estimating sub- • Estimaitng SEC and alternate
based on field • Mapping needs of
sector level scenarios- the forging sector
production studies •EE scenario
• Subsectoral SECs in achieving
• India's GDP (moderate) identified EE
based on type of •EE+State-of-art
growth from 2021 metal reheating potential
to 2031 scenario • Technical,
technique (ambitious)
• Historical sectoral • Validation of data financial and
production • Estimating EE capacity building
inputs from penetration levels
statistic industry experts interventions
• Current share and in alternate required for EE
• Revising SEC and scenarios at adoptions
projections of type other
of forging- Closed sectoral level
assumptionn • Changes in SEC
die, open die
• Share of in alternate
induction, oil & scenarios
gas fired furnaces
and projections
based on fuel
switch

Energy demand for the forging sector is evaluated based on various contributing factors, which
includes sectoral production/service demand, specific energy consumption, energy efficiency
improvement, etc.

This “BEE Energy mapping study” ultimately aims to generate a sector level energy efficiency
roadmap for the forging MSME sector. Findings of this study will also help to formulate policies
and prepare the implementation plan for pacing up the EE initiatives in the forging clusters across
India.

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 Forging Sector Energy Mapping – National Report November 2021

2. Forging Sector Overview

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Forging Sector Energy Mapping – National Report November 2021

2. Forging sector overview

Forging sector is considered as the backbone of manufacturing industry. Forging process can
create parts that are stronger than those manufactured by any other metal forming process. It is
a major input to the sectors which support economic growth of the nation such as automobile,
general engineering, agriculture, aerospace, power, construction & mining equipment, and
railways.

Expansion of manufacturing and infrastructure in emerging economies like India will generate
demand for a wide variety of machinery and equipment, which, in turn, will create demand for
forging parts. Forging market is also directly linked with the development of the overall automobile
sector and with growth of the automobile industry it is expected to generate huge demand for
forging producers.

Forging is a manufacturing process where metal is pressed or squeezed under great pressure
into high strength parts known as forgings. The process is usually performed hot by preheating
the metal to a desired temperature before it is worked. Economically, forged products are
attractive because of their inherent superior reliability, improved tolerance capabilities.
The global metal forging market size was
valued at USD 83.85 billion in 2019 and is Annual Production- Asia Pacific
(Mn tonne per year)
expected to grow at a compound annual
growth rate (CAGR) of 5.0% from FY20-25. 12 11
10
Closed Die forging or impression Die 8
forging, open die forging, Ring roiling 6
forging and precision forging are the most 4 2.4
1.4
widely used processes globally. Products 2 0.5
formed by impression die and ring rolling 0
are gaining the market share, market share Japan South India China
of the open die products has been Korea
Figure 1: Comparison of Asian forging Industry
decreasing over the last one decade1.

China produced around 11 Mn tonne of the forged products during 2019-2020, while India
produced 2.4 Mn tonne during the same financial year. India is second largest producer of the
forging components in Asia.

Automotive sector is the largest consumer of the forged products. Impression die forging is
expected to grow in the Asia region on account because of presence of the numerous auto
manufacturing companies located in south east Asian countries (Including India and China).

Indian forging industry has been seeing the downfall due to the shortfall of demand in auto sector
in past few years. During 2019-2020, revenue of Indian forging industry was estimated at around
4.5 Billion USD2. thus, contributing to around 5-6% in total global forging Industry.

Indian Forging Sector

Forging sector in India is considered as the backbone of the manufacturing industry. Indian
Forging sector caters to requirements of the automobile, machinery, agriculture, engines,

1 [Link]
2 [Link]
industry-might-decline-50-by-september/75532300, conversion of 75 INR = 1 USD is considered

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Forging Sector Energy Mapping – National Report November 2021

aerospace, powertrains, power, construction & mining equipment, railways, and general
engineering. Indian forging industry is globally recognized for its technical capabilities and has a
capability to forge a wide variety of raw materials.
Indian forging industry, with an installed capacity of around 4.7 Million (Mn) tonne3, has produced
over 2.35 Mn tonne of the forged products during the financial year (FY) 2019-20. With a total
production of worth INR 35,000-45,000 crore, Indian forging industry provides direct employment
to more than 300,000 people in the country along with an additional 50,000 contract laborer.

Table 1: Installed capacity and Production details forging

Installed capacity Production Production

Year (FY)
(Mn tonne) (Mn tonne/year) (Rs Crore)
2015-16 3.8 2.3 28,289
2016-17 3.9 2.4 31,189
2017-18 4.2 2.6 34,000
2018-19 4.5 3.0 45,000
2019-20 4.7 2.4 34,000

The Indian forging industry, which mainly manufactures the automotive components, is
directly impacted by cyclical market trends occurring in end-user industries. Over the past
2-3 years, the forging industry has observed a slowdown in the domestic as well as export
market. As automotive sector is facing slow-down since 2018, which was further magnified
due to Covid induced global recession, the Indian forging units are also feeling the impact
on their revenues.

India forging industry contributed to around 5-6% in global forging Industry. Among this, forging
exports from India contributed to over 24% in the total forging revenue. The present export market
includes mainly USA and Europe.
Products manufactured: The forging units in
Share in different sectors
Indian MSME clusters are principally known for
their ability to make superior precision
components. These forging units cater to wide
range of secondary production industries 35%
including automotive (65%) and non-automotive Automotive
industries such machinery and engineering,
railways, agro machinery and tools, power, 65% Non-automotive
defense, mining, and oil & gas industry. The
automobile sector is a major consumer of
forging parts produced in the country.
Figure 2 Share of the forging products in different sector
Majority of the forging industries
manufacture the multiple automotive and engineering products, which are usually custom made
These include propeller shaft, front axle, upper pin, crown wheels, gears, shafts, connecting rods,
forks, camshafts, flanges, and valve body.
Scale and size of units: Indian forging industry has gradually evolved from being a labor-
intensive industry to a more capital-intensive industry. Small scale units are also increasing their
capital investment to keep pace with the increasing demand, especially in the global markets.

3 Source: [Link] Accessed on 16-Jul-2020

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Forging Sector Energy Mapping – National Report November 2021

Large share of the forging industry is made up 3%

of micro, small, and medium enterprises Very small
6%
(MSMEs). According to Association of Indian
9% Small
Forging Industry (AIFI) data base, 83% of the
forging units in India are fall under micro and Medium
small enterprise. While 9 percent are Medium 24% 59% Large
Sized, the remaining being Large Scale
(Figure 3). Very large

The medium and large-scale industries

Figure 3 Distribution of forging Industries
account for about 70% of total forging
production of India, while the remaining 30% is produced by the micro and small-scale units.
Metal Forming technique: Indian forging
sector consists primarily of hot closed die
forging, which constitute about 63% of the 7%
total installed capacity in the country3, Hot closed die 6%
followed by open die forging constituting 7%
Open die
(~17%), cold closed die and ring rolling
account for 7%, 6% respectively (Figure 4). Cold closed die 17%
63%
Products formed by closed die are gaining the Ring rolling
market share, on account of increase in auto
manufacturing companies in India. Others

Heat treatment is an allied process for

treatment of forging and machined Figure 4 Forging process and % share in Industry
components. Some forging units have
in-house heat treatment facilities, while others undertake heat treatment from external heat
treatment units.

Type of metal processes- The Indian MSME forging cluster produces a variety of materials. The
major raw materials used in the forging units include mild steel, carbon steel, alloy steel, stainless
steel, aluminum, super alloy, and special steel.
Most of these raw materials are produced locally or obtained from other domestic markets. Long
bars and billets are used as raw materials in forging industries. The main sources of raw materials
of forging products are steel rolling mills located in nearby regions.

Key growth drivers of the market: - End-user segment

insights:
The Government’s thrust on manufacturing sector with initiatives like ‘Make in India’ and ‘Skill
India’ has created positive economic sentiments amongst the business community. The new
manufacturing policy which envisages the increase in the share of manufacturing in the GDP to
25%, the role of forging industry to support manufacturing is very vital. Since all auto and
engineering sectors use forging products in their manufacturing.
Export market-
Indian forging industry is now increasingly addressing opportunities arising out of the growing
trend among global automotive OEM’s (Original Equipment Manufacturers) to outsource
components from manufacturers in low-cost countries such as India.

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Forging Sector Energy Mapping – National Report November 2021

Many global OEMs and Tier-I players are setting up purchasing offices in India and looking at
procuring high standard quality products. Hence export market presents a great opportunity for
the industry to tap into, with India's current share of export in forging stood at only 1-2%.
Automotive:
Based on volume, India is currently the fourth largest automobile industry, globally. Steady growth
of the automotive sector has also led to the steady development of other subsidiary industries like
the auto component industry, indicating demand for forging parts.
• Demand likely to pick up with steady rate due to increase in disposable income
• Spare parts consumption could drive demand
• Demand for electric vehicles is likely to go up with more thrust for a cleaner environment
Power: Consistent power supply and availability of quality electrical equipment are necessary for
the growth of the Indian economy from a global perspective. "Power for All" will generate huge
demand for power transmission and distribution equipment-
• Ageing equipment will require replacement
• The forging industry is expected to benefit from such power generation installations
Construction and Heavy engineering equipment:
The construction sector in India is poised for steady growth due to substantial investments and
capacity additions. Demand for forging components is expected to expand with the growth of the
infrastructure market in India.
National Infrastructure Pipeline (NIP) has also set plans to help take India to USD 5 Tn economy
and there is a planned budget of USD 1.4 Tn. on infra projects for next 5 years.

Key Challenges
Since most of the forging manufacturing units fall under small and medium enterprises (MSMEs),
they cannot use advanced technological equipment or automation due to high costs, thus limiting
their marketing strength. The inability to supply high quality products to large domestic and global
market players, act as a huge barrier for the industry to grow further.
In addition to this, ever rising fuel prices and non-reliable availability of fossil fuels, has also
become a major problem for the MSME units in the forging sector. These MSMEs also have
limited knowledge capabilities to evaluate production technologies relevant to their unit, and
limited capacities to access finance.

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Forging Sector Energy Mapping – National Report November 2021

Lack of information on international customers’ expectations

Low productivity due to limited access to modern design & manufacturing

tools

High cost of manufacturing due to high cost of input materials, fuel etc.

Non-existence of skilling infrastructure to meet the ever-changing technology

& processes

Rising cost of statutory compliances

Figure 5: Key challenges for the forging industry

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Forging Sector Energy Mapping – National Report November 2021

Geographical Coverage
There are about 400-600 forging units in India, out of these, of majority (nearly 92%) of the forging
units in India falls under the category of medium and small-scale industry.

A peculiarity of the MSME industry in India is its geographical clustering. The forging industries
are also located in clusters across the country, there are about 10 major clusters where the forging
industries are predominantly located across different states. The major forging clusters are in
Pune, Rajkot, Mumbai, Delhi NCR, Jalandhar, Ludhiana, Jamshedpur, Bengaluru, Coimbatore,
and Chennai, among other Indian cities.

Each of these forging clusters caters to some specific end-use market. Major forging clusters in
the country are shown in below section as shown in Figure 7

EAST
NORTH Over 150+ Units
Over 750+ Units Kolkata
Ludhiana Jamshedpur
Delhi NCR
Baddi

WEST
Over 350+ Units
Pune
Rajkot
Baroda
SOUTH
Mumbai
Over 300+ Units
Chennai
Coimbatore
Bengaluru
Hyderabad

Figure 6 Forging clusters in India

Forging Industry in Northern Region

Delhi-NCR is one of the prominent forging cluster in the Northern region, there are around 100
forging units in the cluster spread across Faridabad, Palwal, Gurugram, Rohtak, Noida,
Ghaziabad, Manesar and Bhiwadi region. Forging units in the region mainly produce the
components for auto sector manufacturers in NCR region. Few of the units also produce forged
components for agriculture, heavy machinery, Oil & Gas, and engineering sectors.

Forging industry in the cluster majorly use three forms of the energy i.e., Electricity, Furnace Oil
(mainly Low Sulphur Heavy Stock-LSHS) and Gas (Predominantly-PNG); very few units also use
the other liquid fuels for the metal reheating. Major industry associations active in the cluster are

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Forging Sector Energy Mapping – National Report November 2021

– IamSMEofIndia (Faridabad Chapter), Gurugram Industry Association (GIA), and Association of

Indian Forging Industry (AIFI North Chapter).

Table 2 Details of the Delhi NCR- Forging cluster

Description Details
Location Delhi NCR
Number of forging units 100
Products manufactured Automotive and Machining components
Type of fuel used in cluster Electricity, Furnace Oil, NG, and LPG
Prominent heating Technologies Induction Billet Heaters, Oil Fired furnace, Gas
fired furnace
Prominent Industry association IamSMEofIndia, AIFI Northern Region
Prominent Institutes NSIC technical services centre

Ludhiana-Jalandhar is a prominent forging cluster in the northern region, there are around 300
forging units in the cluster. Forging units in the cluster supports the Auto, Agriculture, Cycle,
Machinery and Engineering sectors. Forging industry in the cluster majorly use three forms of the
energy - electricity, furnace oil and gas for the production.

Major industry associations active in the cluster are – Chamber of Industrial and Commerce
Undertaking (CICU), Punjab forging association and Association of Indian Forging Industry (AIFI),
Federation of Indian Export Organization (FIEO) in Jalandhar region. Crank shaft, connecting
rods, brake drum, spanners, special tools, etc. are the main forged products forged in the cluster.
Forging units in this cluster processes different grades of steel, carbon steel, alloy steel, and mild
steel.

Table 3 Details of the Ludhiana Forging cluster

Description Details
Location Punjab
Number of forging units 200
Products manufactured Automotive, Cycle and Agriculture
Type of fuel used in cluster Electricity, Furnace Oil, NG, and LPG
Prominent heating Technologies Induction Billet Heaters, Oil Fired furnace, Gas
fired furnace
Prominent Industry association Chamber of Industrial and Commerce
Undertaking (CICU), Punjab forging association
and Association of Indian Forging Industry (AIFI),
Federation of Indian Export Organization (FIEO)
Prominent Institutes Central Tool room Ludhiana
SDA Punjab Energy Development Agency

Baddi4 is emerging as one more forging cluster in Northern India, presently there are around 15
operational units. Baddi cluster provides the various products to automotive industries - such as
axles, gears, shafts, bearing race, crankshaft assembly, transmission components, yoke,

4 Discussion with Baddi Association (2020 Field visit for project activities)

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Forging Sector Energy Mapping – National Report November 2021

spindles, few components for aerospace industries. Industry is using a mix of conventional oil-
fired furnaces to modern Induction heating furnaces.

Metal Preparation
Bandsaw is predominantly used for billet cutting across the different forging clusters. However,
some units in Ludhiana also use shearing machines for cutting of the billets and strips.
Billet heating
Oil fired furnaces are predominantly used for metal heating in the Ludhiana and nearby forging
clusters. Gas based heating is widely adopted for metal heating in the Delhi-NCR cluster.
Forging operations
Pneumatic hammers are widely used for the open die metal forming operations in Ludhiana
Phagwara forging clusters.
Hydraulic hammers are widely adopted by the forging units in Delhi-NCR forging clusters.
Forging units in the Phagwara clusters carry out this forging processes to form the metal rings
ranging from a few inches to a few meter (outer diameter).
Coining is predominantly. used for the multiple forging for the auto industry. Trimming is carried
out for almost all forged products for flash removal. Advanced metal forming machines are now
capable of producing the flash less forged products which has almost no flash. Flash less forging
is being done by fewer progressive and front runners MSMEs across the Ludhiana, Phagwara
forging clusters.

Forging Industry in Western Region

Pune second largest city in Maharashtra, has developed into a manufacturing centre for many
industries like automobiles, pumps, rubber, plastics, pharma, chemicals, and allied engineering.
Pune is the country’s largest manufacturing hub of automotive components. With the increasing
presence of many automobile companies and auto ancillary divisions in Pune, a large number of
the machining, forging, and heat treatment units have become suppliers to Original Equipment
Manufacturers’ (OEMs) in the automobile sector.

Pune forging cluster accounts for about 20–25% of the total national production of forged
components. There are around 60 forging units located in the Pune region. Pimpri- Chinchwad
and Bhosari hosts the maximum number of the forging units in the region. Domestic users of
forgings from the cluster are automobile companies like Tata, Mahindra, Bajaj, JCB, ordinance
factories around Pune and engineering firms like Thermax, Forbes Marshall, Kirloskar and so on.
The domestic market constitutes major part of the total supply from these MSME units.

Table 4 Details of the Pune Forging cluster

Description Details
Location Maharashtra
Number of forging units 60
Products manufactured Automotive, Heavy Engineering
Type of fuel used in cluster Electricity, Furnace Oil, NG, and LPG
Prominent heating Technologies Induction Billet Heaters, Oil Fired furnace, Gas fired
furnace

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Forging Sector Energy Mapping – National Report November 2021

Prominent Industry association AIFI Western Chapter, Pimpri-Chinchwad Association

Prominent Institutes Maharashtra Industrial Development Corporation
(MIDC), Automotive Research Association of India
(ARAI) forging industry division
SDA Maharashtra Energy Development Agency

Rajkot is one of the leading forging cluster in the west, there are around 150 forging units in
cluster. Cluster servers mainly to pump manufacturers, engineering works and automobile sector.
Cluster uses electrical energy, Furnace oil and natural gas for the heating applications. Major
industry associations in the cluster are Rajkot Engineering Association, AJI GIDC, GLIA, Shapar-
Veraval. Ring rolling and closed die are the major operations performed in the cluster5,. As per
collective data from the different associations annual production is over 4.34 lakh tonne annually.
Closed die production accounts for the 76% of the energy consumption and 24% is attributed by
the ring rolling operations.

Table 5 Details of the Rajkot Forging cluster

Description Details
Location Gujarat
Number of forging units 60
Products manufactured Automotive, Heavy Engineering
Type of fuel used in cluster Electricity, Furnace Oil, NG, and LPG
Induction Billet Heaters, Oil Fired furnace, Gas
Prominent heating Technologies
fired furnace
Rajkot Engineering Association, AJI GIDC,
Prominent Industry association
Shapar-Veraval Industry Association
Prominent Institutes NSIC technical services centre
SDA Gujarat Energy Development Agency

Metal Preparation
Bandsaw is predominantly used for billet cutting across the different forging clusters.
Billet heating
Induction based heating is predominately used for billet heating in the Pune, and Rajkot forging
clusters.
Forging operations
Pneumatic hammers are widely used for the open die metal forming operations in Rajkot and
Pune forging clusters.
A very few units carry out the ring rolling operations.

Forging Industry in Southern Region

Chennai Cluster- Chennai is a hub of engineering and automotive industries in India. All sectors
of the automotive and engineering sector are represented, including two-wheelers, four-wheelers,

5 [Link] (2016) Accessed on 16-Jul-2020

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Forging Sector Energy Mapping – National Report November 2021

cranes, earthmovers, mining, and oil drilling equipment, to pumps & valve bodies, and defence
parts etc. With the increasing presence of many automobile companies and auto ancillary
divisions in Chennai, a large number of the machining, forging and heat treatment units have
become suppliers to Original Equipment Manufacturers’ (OEMs) in the automobile sector.

Major industry associations active in the cluster are – AIFI, Ambattur Industry Association, are
leading association in the region having around 40 forging member units. The Chennai forging
cluster mainly caters to the demands of various large original equipment manufacturers (OEMs)
of all types of cars and truck manufacturers, such as Tata Motors, Ashok Leyland, Nissan Motors,
Volkswagen, Mahindra & Mahindra, Bajaj Auto, etc. The Chennai forging cluster also caters to
the demands of (non-auto components) electrical components, engineering components for OEM
L&T, Godrej etc.

Table 6 Details of the Chennai Forging cluster

Description Details
Location Tamil Nadu
Number of forging units ~40
Products manufactured Automotive, Electrical component, engineering
Type of fuel used in cluster Electricity, Furnace Oil
Prominent heating Technologies Induction Billet Heaters, Oil Fired furnace
Prominent Industry association AIFI, Ambattur Industry Association
Prominent Institutes DIC, ITI
Tamil Nadu Generation and Distribution
SDA
Corporation Limited

Bengaluru is Bangalore is the hub for machine tools in India and cluster accounts for 60% of the
value of production of machine tools in the country. It is also home to forging industries & heavy
engineering companies and cluster is having around 40 forging units. These machine tool,
engineering and forging units are mainly located in Peenya Industrial estate, Attibele Industrial
estate, Bommasandra Industrial estate, and nearby regions i.e., Tumakuru, Malur Harohalli,
Hoskote, Hosur etc.

Forged products in the region catering to different sectors of economy such as automobile
industry, aerospace industry, and CNC Machine industry across the globe. Forging units in the
region use the different production processes and equipment such as drop hammers, pneumatic
hammers, hybrid hammers, machining processes etc. Major industry associations active in the
cluster are – Peenya Industry Association and Association of Indian Forging Industry (AIFI)
Southern Chapter.

Table 7 Details of the Bengaluru Forging cluster

Description Details
Location Karnataka
Number of forging units ~40
Products manufactured Automotive, Engineering, CNC Machines
Type of fuel used in cluster Electricity, Furnace Oil
Prominent heating Technologies Induction Billet Heaters, Oil Fired furnace

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Forging Sector Energy Mapping – National Report November 2021

Peenya Industry Association and AIFI Southern

Prominent Industry association
Chapter
DIC, The Karnataka German multi-skills
Prominent Institutes
development centres
Karnataka Renewable Energy Development
SDA
Limited

Metal Preparation
Bandsaw is predominantly used for billet cutting across the different forging clusters. However,
some units in Chennai and Bangalore also use shearing machines for cutting of the billets and
strips.
Billet heating
Induction based heating is predominately used for billet heating in the Pune, Chennai, and
Bangalore forging clusters. Oil fired furnaces are predominantly used for metal heating in the
Bangalore for open die forging operations.
Forging operations
Pneumatic hammers are widely used for the open die metal forming operations in Bangalore,
Pune forging clusters.
Hydraulic hammers are widely adopted by the forging units in a very few units in Bangalore and
Chennai forging clusters.
Forging units in the Bangalore clusters carry out this forging processes to form the metal rings
ranging from a few inches to a few meter (outer diameter).
Coining is predominantly. used for the multiple forging for the auto industry. Trimming is carried
out for almost all forged products for flash removal.
Advanced metal forming machines are now capable of producing the flash less forged products
which has almost no flash. Flash less forging is being done by fewer progressive and front runners
MSMEs across the Bangalore forging clusters.

Forging Industry in Eastern Region

Jamshedpur -Adityapur is the having over 50 forging industries, these industries mainly cater
the forged products requirement of the automotive sector. Adityapur Auto Cluster6 is home to
forging units that serves to auto sector, heavy machinery, and allied engineering sector. Adityapur
Small Industries Association, Jharkhand Small Industry Association are the two prominent
Industry association in the region. Most of the Industries in the region are small and Medium
enterprise.

Kolkata is having forging units spread over the Kolkata, Howrah and nearby regions. Kolkata is
predominantly foundry cluster but there are few forging units in operation in the region. 27 forging
units from the he Jamshedpur and Kolkata region are member of AIFI Eastern region.

Sector level stakeholders

In context of our existing working relationships in a number of MSME clusters, the local level
stakeholders show great interest and enthusiasm for energy efficiency initiatives and technical

6 [Link] Accessed on 20-Jul-2020

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Forging Sector Energy Mapping – National Report November 2021

cooperation activities. These stakeholders can be positioned as opinion influencers among the
local industrial community during project activities in any particular cluster.
The primary stakeholders in the cluster are the industry associations, individual forging units and
MSME DI. The other stakeholders include the technology suppliers, government agencies,
financial institutions, and academic/training institutes.

Industry Association
Industry Associations are increasingly becoming more professionally managed with dedicated
staff for day-to-day operations. These associations serve as the first avenue to understand cluster
dynamics such as energy efficiency technology needs, disseminate best practices among
member units and also assist in organizing various cluster level awareness programmes on EE.
Leveraging these industry associations from the initial stage of the study would be quite valuable
in:

• Understand the membership profile of MSMEs in the cluster

• Cluster profile of Industrial association including number of MSMEs, size of MSME units
• Present business scenario, barriers for energy efficiency
• Support in reaching out to member industries for project activities
The major industry associations in the Indian forging sector are presented next.
Table 8 List of key industry associations
Organization Email
AIFI Secretariate – Pune trupti@[Link]
CICU sbsingh@[Link]
FIEO ashwanikumar57@[Link]
Punjab Forging Association smahendru@[Link]
AIFI – Ludhiana Chapter umeshmunjal@[Link]
Pimpri-Chinchwad Association mypcpa@[Link]
Peenya Industry Association Peenya Industry Association
Hosur Industries Association Hosur Industries Association
AIFI – Southern region Chapter thiagarajanmf@[Link]

Government Institutes:
There are government support bodies, such as District Industries Centre (DIC) in the cluster which
also work towards the development of the cluster particularly for MSME industries.

Automotive Research Association of India (ARAI) – Pune

Automotive Research Association of India (ARAI) serves hundreds of customers in a year

including Automotive OEMs; Engine, Component and Systems Suppliers; large number of SMEs
etc. ARAI‟s forging division organizes training and undertakes R&D projects as well as testing
and validation.
Various initiatives, such as the Auto Cluster Development Centre, which provides facilities like
CAD-CAM centre and stimulation for design of tools and auto components have also been
undertaken in the cluster.
Government institutes in Ludhiana Region
Institute for auto parts and hand tools technology was set up to a research & development
organization for auto component and hand tools manufacturing sectors with the aim to uplift

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technological level of small & medium enterprises of the region (UNDP initiative). Central institute
of hand tools (MSME tool room, Jalandhar) is a premier organization responsible for the
development of hand tool industry in the country
Key national and regional stakeholders associated with forging are presented next-

Association of Indian Forging Industry AIFI is national association for the forging in India,
representing Indian forging industries at various platforms national and international platforms.
AIFI has over 300+ forging members across the country, Southern region office of AIFI is located
at Chennai. AIFI has regional chapter in Bangalore, Northern region office is located in Ludhiana
and AIFI - secretariat located in Pune.

The association provides support on addressing various cluster specific issues. In addition,
activities of the association include seminars, workshops, technical programmes and training for
shop-floor workers and dissemination of newsletters. AIFI host the Organize National and
International Conferences on the forging and on new technological developments in the sector.
and AIFI represents Indian forging at International Forging Congress International Forging
Congress.

AIFI periodically publish the quarterly magazine (Focus) comprises macroeconomic review of the
Indian forging sector, impact of economic trends, technical and knowledge articles related to
forging industry, case studies and BOPs and global aspects with respect to forging industry. AIFI
has strong sill development curriculums for forging industries and host regular training programs,
technical seminars and workshops for the forging industries.

Chamber of Industrial and Commerce Undertakings (CICU)

Chamber of Industrial and Commerce Undertakings (CICU) is one of the most predominant
Industry association in the region. CICU has strength of about 1,200 members and over 100+
forging units as well as individual forging consultants, equipment suppliers, and LSPs. Punjab
forging Association (PFA) is associated with CICU and is leading forging association in the
Ludhiana, Association is also associated with CICU. PFA have strength of over 50 members
comprising forging units.
The association provides support for skill development and promotion of EE drive in the clusters.
CICU has been institutional in the region for strengthening the MSME with technical capacity
building through workshops, B2B events, technology seminars, technology collaboration, training
on 5S, Kaizen, ISO activities etc. In addition, activities of the association include seminars,
workshops, technical programmes and training for shop-floor workers and dissemination of
newsletters. CICU is planning to set up regional chapter of National Institute of Foundry and Forge
in Ludhiana.
Federation of Indian Exports Organization (FIEO)
Federation of Indian Exports Organization (FIEO) have over 50+ forging and hand tool units
associated with them in the Jalandhar region. Association is supporting the forging and hand tool
industries in the Jalandhar region, multiple projects from UNIDO, GEF on EE have been promoted
by the association in the region to foster development across forging and hand tool industries.
FIEO has been promoting the EE culture in the hand tool forging cluster through multiple initiatives
of BEE and GEF -UNIDO, UNDP programmes.
Peenya Industry Association – Bangalore
Peenya Industry Association, located in Bangalore, is one of the oldest industrial estates in
Southeast Asia. Association has strength of over 5,000 members and several forging units and
individual forging consultants, equipment suppliers, and LSPs.

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Institutions supporting forging units

National Institute of Foundry and Forge Technology (NIIFT) is one of the pioneer institutes for
the foundry and forging is located in Ranchi and was instituted in 1966. Since inception NIIFT has
been supporting the R&D, training programmes for the foundry and forging industries. Institute
providers multiple education and training courses related to Forging and Foundry Technology, ,
Manufacturing Engineering, Materials and Metallurgical Engineering etc. Institute has world class
infrastructure to promote the R&D activities, key facilities offered by NIIFT are – Mechanical
laboratory, Metallography, FMS, Non-destructive and mechanical Testing Non-destructive and
mechanical Testing, Ceramic lab, Spectroscopy, Environmental and Pollution Control Lab,
Metrology, Electronics etc.

National Small Industry Corporation (NSIC) is one of the oldest institutes in the country,
instituted in 1955. Broader objective of NSIC is to promote, aid and foster the growth of MSME
enterprises in the country. NSIC have been working on multiple programmes for skill
development, training etc. NSIC has multiple regional centers supporting different MSME clusters.
Institute supports common facility services for MSME industries, to enhance their competitiveness
and quality. NSIC provides multiple facility to the industries – material testing facilities, energy
auditing, chemical testing, energy efficiency, environment management training etc. Key activities
supported by NISC relevant to forging units are-

• Conduct hand-on trainings for skill enhancement of shop-floor workforce around energy
efficiency and management.
• Develop curriculum for professional courses in forging and foundry technologies through
consultation with stakeholders
• Establishing of facilities such as for forged component testing, Computer Aided Design for
forging operations, die development etc.
.

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3. Energy Consumption and benchmarks

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Forging Sector Energy Mapping – National Report November 2021

3. Energy consumption and benchmarks

Energy Benchmarking
The term benchmarking involves “comparing actual or planned practices, such as processes and
operations, to those of comparable organizations to identify best practices, generate ideas for
improvement”7 which form the basis for measuring performance in an industry.
Energy efficiency benchmarking can be defined as the technique to identify the best practices and
achievable energy efficiency improvement targets in companies and industries. The management
in an industry can compare their baseline values with benchmark and take steps to ensure
improvements in energy efficiency.
Energy efficiency benchmarking can be divided into internal and external benchmarking. Internal
benchmarking is the comparisons within one company to establish the baseline and best practice.
External benchmarking is to compare companies in the same or similar industry sector to establish
the best-in-class performance. Additionally, general benchmarking is the comparisons of practices
regardless of the industry field.
Benchmarking as defined above is process of searching for best practices that lead to excellence
in performance. Baseline can be established by comparing the best practices practiced and
subsequently, areas of potential improvement, and areas of focus can be identified. A variety of
methods and studies have been carried across industry to come up with the best practices of
energy efficiency benchmarking.

Example: A five step energy benchmarking method (E2BM method)

E2BM method can be applied at each

individual process (e.g. machine),
interrelated processes (e.g.
production line), and a plant. This
method relates energy consumption
in manufacturing process to material
flows to visualise the effectiveness
and variations of energy usage. The
inputs received from the prior step are
used for developing strategies to
improve energy efficiency. It consists
of five steps and takes three levels of
hierarchy into consideration i.e. plant,
production line and machine.

7 Source: Guide to the project Management body of knowledge, PMBOK, 2013.

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Forging Sector Energy Mapping – National Report November 2021

Energy Performance Indicators for the sector

Key Performance Indicator (KPI) can be defined as a quantifiable/measurable value that
demonstrates how effectively the industry or equipment or process is performing. KPIs can be
financial and non-financial. A pictorial representation defining KPI’s is shown along in the figure
The four challenges in defining and maintaining KPIs are: (a) understanding industry’s strategy

KPIs Specific Measurable Achievable Relevant Time-bound

are
and key objectives, (b) measure is deemed important to area/process of the industry, (c) targets
of KPI improvement must be realistic and (d) in case, accurately measuring and reporting
indicators is difficult, internal process or SOP should be defined.8
Table 9 EnPIs related terms and definitions
Term Definition Notes
Energy baseline Quantitative reference(s) providing a An energy baseline reflects a
basis for comparison of energy specified time period
performance
Energy Quantity of energy consumed -
consumption
Energy efficiency Ratio or other quantitative Conversion efficiency: energy
relationship between an output of required/energy used;
performance, service, goods, or output/input; theoretical energy
energy, and an used to operate/energy used to
input of energy operate
Energy Measurable results related to energy Results can be measured
performance efficiency, energy use and energy against organization's energy
consumption targets and energy
performance requirements
Energy Quantitative value or measure of EnPIs could be expressed as a
performance energy performance, as defined by simple metric, ratio, or a more
indicator the organization complex model9

EnPIs can be a simple parameter, a simple ratio, or a complex model. Examples of EnPIs can
include energy consumption per time, energy consumption per unit of production, and multi-
variable models. The organization can choose EnPIs that inform the energy performance of their
operation and can update the EnPIs when business activities or baselines change that affect the
relevance of the EnPIs, as applicable.

Energy performance indicator of a forging industry is represented as energy consumed per tonne
of forged product (kWh/tonne), the indicator can be further divided to arrive at sub-
process/equipment-wise EnPI such as metal heating (kgoe/tonne), air compressor (kW/cfm). The
EnPI for any equipment varies depending on end application, usage pattern and several variable
parameters.

8 Source: The Basics of Key Performance Indicators, [Link]

indicators-2275156
9 Source: International Standard, ISO 50001 - Energy Management Systems - Requirements with guidance for use,

1st edition 2011-06-15

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Forging Sector Energy Mapping – National Report November 2021

EnPIs can further be classified as direct or indirect. Direct EnPIs are the internal factors for
comparison within an industry to come up with best practices and establish baselines. Indirect

Energy consumption benchmarks for forging sector

Forging industry is energy intensive and energy cost accounts for about 15–20 per cent of total
production cost. The primary process steps in forging method are metal heating, forging and HT
operations, machining, and finishing. Induction furnace and oil/gas fired furnaces are the two main
metal heating furnaces used by forging. Metal heating accounts for 47-64% of the energy of the
total energy consumed in the forging units. Forging and heat treatment operations consume 27-
30% of the energy used by the forging industries. The remaining balance is used in auxiliary
operations. Energy consumption of different processes across the different forging clusters is
presented in figure below.

% share of energy in different operations

100%
12% 9% 12% 14% 13%
19%
80% 27%
29% 27% 30%
28% 40%
60%

40%
59% 64% 61% 56%
53% 47%
20%

0%

Metal Heating Forging and Heat treatment Machining & Utilities

Figure 7: Share of energy uses in different forging processes

Furnaces and auxiliaries have a huge potential for energy conservation, around 10-35% of the
energy can be saved - by selecting right type and size of equipment, maintaining the air fuel ratio,
complete combustion, waste heat recovery, automation of processes, periodical maintenance,
and by adopting best operational practices. In Indian forging context, some clusters are doing
better than others. Within the clusters some forgings are doing better than others. They have
identified and implemented energy efficient technologies and practices. Thus, there is need for
benchmarking and energy mapping. This shall further improve the efficient and competitiveness
of the Indian forging industry. SEC (kgoe/tonne of final product).

SEC comparison across various clusters across India

The specific energy consumption (SEC) of any forging varies considerably depending on the type
of metal heating and allied forging operations and the degree of mechanization used.
Average SECs of forging in some of the prominent clusters are represented in the bar graph
below.

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Forging Sector Energy Mapping – National Report November 2021

SEC (kgoe/tonne)
250
209 209
200
162
kgoe/tonne

137 148
150 117
100

50

0
Bangalore Chennai Rajkot Delhi-NCR Ludhiana Pune

Figure 8: SEC benchmarks for different forging clusters across the country

SEC variation across the different clusters10 based on the metal heating technologies is
presented in Figure 9 and Figure 10

Oil Furnace SEC (kgoe/tonne)

350 317
303
300
250
250
kgoe/tonne

200 171
185
141
150 135 156
132 110
100 128 126 105
100
50 Minimum to Median Minimum to Median 70
band band
0
Bangalore Chennai Delhi-NCR Ludhiana Pune

Figure 9: SEC for different forging units using oil /gas fired furnaces for metal heating

10Details are based on the energy audit and filed studies carried out under BEE energy and resources mapping
assignment across different forging clusters

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Forging Sector Energy Mapping – National Report November 2021

IBH SEC (kWh/tonne)

800
695

600 521 543 535

497
kWh/tonne

435 466 438

401 394
400
423 404
375 375
337
200 Median to Maximum band

Minimum to Median band

0
Bangalore Chennai Delhi-NCR Ludhiana Pune

Billet weight v/s SEC

800
700
SEC (kWh/tonne)

600
500
400
300
200
100
0
0 5 10 15 20
Mass of Billet (kg)

Figure 10: SEC for different forging units using the Induction billet haters technology
During the study correlation between the size of the billets and SEC was observed and the same
is presented in the Figure 10. Forging units using the higher size coil to heat the billets are having
the high SEC level. Most of the units processing the heavier billets using the adequate coil size
have lower SECs. Thus, it is very crucial to follow the SOPs while using the IBH to have the
optimized SECs levels. SEC of the induction billet heater marginally decreases with increase in
the mass of the billet provided the unit had adopted the best operating practices.

To carry out the better comparison the SEC should be monitored on the basis on different type of
the forging operations. Variation of the SEC for different forging operations is presented next.

Variation of the SEC for different forging processes by use of the different metal forming
applications are presented in Figure 11.

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Forging Sector Energy Mapping – National Report November 2021

Average SEC of different forging processes

250 236
202
200 170
kgoe/ tonne
150

100

50

0
Close Die Ring Rolling Open Die

Figure 11: SEC of forging units based on different operations

Share of Energy connsumption

20%

3% Close Die
Ring Rolling
Open Die

77%

Figure 12: Share of the energy based upon the metal forming operations11
Variation in the SEC can be broadly classified in the four main parameters –

• Type of metal -reheating furnaces

• Type of the forging operations
• BOPs
Details of each category mentioned above is presented in detail next-

• Type of metal re-heating furnaces

• Metal re-heating furnaces can be broadly categorized into two categories – Induction billet
heaters (IBH) and oil/gas fired furnaces
o Induction billet heaters – metal is heated using the electrical energy in the IBH, use
of this heating technology provides better control of the billet temperature and
higher level of the automation is possible. Scale losses are lower in this technology
as compared with other heating technologies
o Oil/Gas fired heating furnaces – metal is heated using the oil/gas in the box type
furnaces, use of this heating technology can be used to heat the large (less
volume) / irregular size pieces (strips and specially cut work piece generally used
in hand tool industry). Scale losses are slightly higher due to contact of the flame
with metal, precise controlling of the metal temperature is very difficult, metal is
generally over heated (10-30 degree) - leading to higher SEC.

11 Based on the study carried out in the five forging clusters under BEE energy and Resource mapping assignment.

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Forging Sector Energy Mapping – National Report November 2021

Most of the units in the Bangalore, Delhi -NCR produce the larger volumes of the high-end forging
products – generally use the IBH for the close die forging applications. These clusters use the oil
/ gas fired heating technologies for the open die and ring forging applications.

•
Type of forging operations
o Close die forging is most widely adopted technology for metal forming across the
different forging clusters.
o Open die forging is most widely adopted for larger size forged products, mainly
applicable for forming the forged parts for heavy machinery and oil& gas industry.
Open die forging is mainly located in the Delhi-NCR, Bangalore clusters, fewer units are
operational in other clusters.
o Ring rolling is most widely adopted to prepare the seamless rings for the oil & gas
applications and valve industries.
Ring rolling units are predominantly operational across the Bangalore forging cluster, fewer units
are operational across the Phagwara forging cluster.

• Best operating practices and EE technologies for the different processes used in
forging units play is vital role in optimization of the energy consumption in the units.
Summary of key BOP’s and technologies is presented in Table 10
Table 10: Summary of BoPs and EE technologies for different forging processes 12
Major Area of
Improvement
Best operating
Particulars Best Required to meet
practices
the Benchmark
values
• Use
• Use of an IGBT
appropriate
based induction
coil size for
furnace.
the job
• Use temperature
Induction billet heater (kWh/tonne) 330 • Maintain the
control for the
furnace
controlling the
surface
hot billet
temperature
temperature
70-90 ⁰C
• Maintaining • Maintain the
proper air – fuel appropriate
ratio to maintain air fuel ratio
the uniform • Liquid fuel –
temperature in 1.15-1.20
furnace • Gaseous fuel
Oil fired furnaces (kgoe / tonne) • Improving – 1.12-1.15
Heat treatment furnaces
70 operating • Maintain the
practices, Proper appropriate
sizing of the surface
blower (pressure temperature
and volume) • Ceiling –
• Installing waste 110-120 ⁰C
heat recovery • Side wall –
recuperator) 85-100 ⁰C

12 Elaborative details of ah technology and BOP is presented in technology compendium section

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Forging Sector Energy Mapping – National Report November 2021

Major Area of
Improvement
Best operating
Particulars Best Required to meet
practices
the Benchmark
values
• Flue gas exit
temperature
– 250-300 ⁰C
• Use of the VFD • Use of the
based presses adequate
for optimization metal
power temperature
Metal forming presses NA • Use of modern required for
hydraulic metal de-
hammers forming
instead of operations
pneumatic and avoiding
hammers re-heating
Screw Air compressors • Use of IPM
0.15
(Pressure 7 bar) screw • Optimizing
compressors the pressure
• Technology shift drop in
Reciprocating Air compressors to screw pipeline and
0.2 arresting air
(Pressure 7 bar) compressors
with integrated leakages
control systems
• Selection of • Monitoring
adequate pump the water
Pump set (efficiency) up to 10 kW 80% with appropriate quality and
flow and head, operating
Proper parament’s
maintenance periodically
• Avoid
multiple time
re-winding
• IE4/ Permanent • Avoid
Motors and Drives 96% Magnet, installing
Replacement of higher
rewound motor capacity
(rated than
required)
motors
• Use of higher • Use of the
efficient Star motion
Lighting 135 rated LEDs, use sensors and
of adequate lux automatic
level in different switching of
areas lights

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 Forging Sector Energy Mapping – National Report November 2021

4. Energy efficiency potential in forging

sector

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Forging Sector Energy Mapping – National Report November 2021

4. Energy Efficiency Potential in forging

sector
Forging is one of the most energy intensive sectors, the majority of the energy is consumed in
metal heating and allied operations depending upon the type of the forging operations. Metal re-
heating contributes considerable share in the energy pie for the forging units, followed by the
forging and heat treatment processes.
Energy saving potential is a function of the present efficiency levels, type of fuel used, energy
efficiency measures applicable for different forging clusters, and readiness of the forging clusters
in adopting the new state of art technologies. Details of the present fuel mix, penetration level of
different technologies, EE potential for the different forging clusters and national level projections
is presented in this section.
The Forging sector mainly uses oil and electricity for meeting the energy requirements. Gas is
used as fuel in limited operations in limited clusters, oil/gas is used for HT in some clusters and
used as fuel in DG for back power. Major application of the different fuels is presented next.

Electricity
• Metal heating - Induction billet heaters
• Forging hammers and presses
• Machining, shot blasting, air compressor, cooling towers

Oil
• Metal heating furances
• Heat treatment furacnes
• DG back up power

Gas
• Metal heating furnacs
• LPG is mainly used in heat treatment furnaces

During the BEE- “Energy and resource mapping assignment” detailed primary survey (EoI forms
200+) and secondary stakeholder consultations (250+), field visits (65+), energy audits (50),
review of the past reports and interventions carried out across forging clusters, discussion with IA
(12+) and technology providers - were carried out to evaluate the penetration level of different
technologies and shar of the different fuels etc.

Summary of the cluster level and sector level findings based on the elaborative and extensive
study is presented in section next.

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Forging Sector Energy Mapping – National Report November 2021

Energy consumption at cluster level

Different forging industries use the mix of the conventional and modern metal heating
technologies. Based on the different technologies and operations predominantly three forms of
the energy are used by the sector i.e., electricity, coke, and gas. Share of the energy varies for
the different forging clusters based upon the type of the technology and different operations
catered during the formation of the final product.
During the BEE energy and resource mapping study, the share of the fuel mix for five forging
clusters (Bangalore, Pune, Delhi-NCR, Chennai, Ludhiana) is calculated based on the energy
audits and stakeholder consultations with industries and multiple industries associations in these
clusters (physical meetings, workshops, webinars).

Findings for these clusters have been thoroughly discussed with prominent industry associations
and industries through workshops / physical meetings and one-one interactions with multiple
industries.
Five cluster level workshops were conducted across – Bangalore, Pune, Delhi-NCR, Chennai,
Ludhiana forging clusters to validate the findings. Regional consultations across the prominent
forging clusters (western region, northern region) were also conducted to validate the findings.
Summary of the different forms of energy used in different forging clusters is presented in Table
11 and share of the energy (toe) for different clusters is presented in Table 12.
Table 11: Fuel mix for the different forging clusters (five clusters)
Energy Delhi-
Unit Bangalore Pune Chennai Ludhiana Overall
type NCR
million
Electricity 40 155 172 98 645 1798
kWh
Gas tonnes 715 6527 22586 6 29834
Oil tonnes 10904 12813 3334 2619 51912 81582

Table 12: Energy share of different fuels in five forging clusters (Units - toe)13
Energy
Bangalore Pune Delhi-NCR Chennai Ludhiana Overall
type
Electricity 3,465 13,344 14,761 8,403 55,445 95,419
Gas 822 14,695 25,943 - 7,232 48,692
Oil 11,740 13,495 3,500 2,777 55,127 86,639
Total 16,027 41,534 44,205 11,180 117,804 230,750

13 Appropriate GCV values of the different fuel based upon the discussion with Industries review of the GCV reports at
different audited units, across different clusters have been used to convert the different form of fuel to oil equivalent
units.

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Forging Sector Energy Mapping – National Report November 2021

% share of the different fuels

38% 41% Electricity

Gas
Oil

21%

Figure 13: Energy share of different fuels across five clusters

Electricity is the prominent fuel in the five forging clusters (Bangalore, Ludhiana, Delhi, Pune,
Chennai) accounts for around 35% of total energy demand in these clusters. Oil is the second
largest used fuel in these clusters and contributes 38% to energy pie. Gas contributes to around
21% share in these clusters. However, the gas is predominantly used in Delhi forging clusters for
metal re-heating and mainly for heat treatment applications in Pune, Bangalore clusters. Units in
Ludhiana – Jalandhar cluster and fewer units in Hosur use LPG cylinders for the HT processes.

Prominent metal heating technologies adopted in forging

Different technologies are used in different forging clusters. Summary of the technology level
penetrations is carried out on the basis of the primary survey, field visits, energy studies and
stakeholder consultations across different forging clusters.
Summary of the predominant metal heating technologies (Induction heating furnace and Oil/Gas
fired furnaces) adopted among the different forging clusters is presented Figure 14..

% Share of different metal heating technologies

100% 7%
30% 22%
80% 45% 50%
60% 45%
60% Gas
10% FO
40% 70%
70% IBH
55% 48%
20% 40% 40%

0%
Bangalore Chennai Delhi-NCR Ludhiana Pune National

Figure 14: Share of the prominent metal heating technologies during FY 21-22

Oil fired metal heating furnaces is predominately used to heat the metal for the forging
operations. Conventional box type furnaces are predominantly used across different clusters
(Ludhiana Jalandhar Bangalore) which use higher energy per tonne of molten metal. Bangalore
forging units carrying out open die operations (larger work pieces use the oil firs heating furnaces).
Units in Delhi use the special low Sulphur oil for the metal heating.

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Forging Sector Energy Mapping – National Report November 2021

Gas fired furnaces are predominately used to heat the metal for the forging operations in Delhi
NCR region. Other clusters use the gas for the heat treatment furnaces. There is limited adoption
of these furnaces due to lack of the proper gas pipeline across different forging clusters.

Induction billet heater (IBH) is predominantly used for billet heating from (30-300 mm). IBH is
modern technology that help the forging units to heat the metal with precise temperature control
and lower loss of the metal in the form of scale. IBH is predominantly used in across the Pune
Delhi, Bangalore, Chennai clusters.

Sector level production details and SEC

Production data for the different grade of metal taken from the national level forging association
(AIFI). Based upon the historical production data CAGR is calculated and CAGR growth is used
to project the future production levels. SEC data for the forging is calculated from the multiple
energy audits carried out under the BEE energy and resource mapping assignment, SEC data
has been validated thought multiple consultations carried out different forging cluster. Details of
the present level production, SEC are presented in Figure 15.
Table 13: Production data for the FY 22
Metal heating technology Mn tonnes SEC (toe/tonne)
Induction heating 1.90 0.165
Gas fired furnaces 0.22 0.183
Oil fired furnaces 0.59 0.185
2.71

Heating technology wise production

6.000

5.000

4.000

3.000

2.000

1.000

0.000
FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31
FO 0.456 0.440 0.418 0.389 0.352 0.306 0.249 0.180 0.098 0.000
Gas 0.231 0.253 0.277 0.303 0.331 0.362 0.396 0.433 0.474 0.518
IBH 2.026 2.222 2.438 2.675 2.935 3.220 3.533 3.876 4.252 4.665

Figure 15: Share of production of based on heating technologies

Sector level energy consumption

Benchmark SEC data for the different metal and type of operations in forging validated through
multiple consultations is used for calculating the sector level energy consumption data. Energy

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Forging Sector Energy Mapping – National Report November 2021

consumption for different types of metal heating technologies is calculated by product of the SEC
data and production volumes. Summary of the sector level energy consumption for different
metals is presented in Table 14.
Table 14: Sector level energy consumption of the different metal and metal heating technology
(FY 22)
Metal heating technology Mn toe
Induction heating 0.31
Gas fired furnaces 0.04
Oil fired furnaces 0.11
Total 0.46

Projections of energy saving potential and electrical

energy requirement
In order to evaluate the energy saving potential at the sector level, mapping of energy efficiency
technologies, state of art technologies, EE technologies for utilities is required along with energy
saving potential.
Mapping of the technologies for the different forging clusters were done through field studies,
primarily survey, discussion with IA and technology vendors. Long list of the technologies was
mapped during multiple tasks and activities under BEE energy and resource mapping study.
Replication potential for different technologies in short term and long term is evaluated in closed
consultations with multiple stakeholders across different leading forging clusters – Rajkot-Shapar
Veraval forging cluster, Jalandhar-Phagwara forging cluster, Ludhiana forging cluster,
Bangalore forging cluster, Chennai forging cluster, Pune forging cluster, Delhi -NCR and
nearby forging clusters.

Over 280+ forging units14 and 12+ industry associations (including regional chapters of AIFI
regional cluster level associations) were consulted to fine tune the recommendations of different
technologies and repletion potential. Summary of different energy efficient and state of art
technologies is presented in Table 15 and Table 16..

14 Including the post audit workshop and cross cluster consultations

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Forging Sector Energy Mapping – National Report November 2021

Potential of technology penetration levels across

Table 15: Process specific replication potential of ECM across forging clusters

Replication Potential in
Energy Replication Potential in short-term
Sr. long-term
Technologies savings (till 2025)
No. (till 2030)
potential
Micro Small Medium Micro Small Medium
New generation IBH with IGBT control along with IoT
1. 10-30% High Medium Saturation Saturation Saturation Saturation
based alerts and automation
Use of modern pneumatic clutch all electric presses
2. 5% Low Medium Medium High High Saturation
with VFD for forging
3. Fuel switch in Oil- NG 5-10% Low High High Saturation Saturation Saturation

4. Relining of furnaces / Insulation 5-10% High High Saturation Saturation Saturation Saturation
Electrically operated Heat treatment / Annealing /
5. 20-30% Low High Saturation High Saturation Saturation
Normalization furnaces
6. Automatic continuous lines 10-20% Low Low Low
Multi axis Machining centre ( 5 / 6 Axis with automatic
7. 5-10% Low Medium High Medium Saturation Saturation
tool changer)
8. IoT based EMS 2-5% Low Medium Medium Medium Saturation Saturation

State of Art 15

9. Flash less forging 5-10% Low High Low High Saturation

Installation of robotic automation in forging lines
10. 3-5% Low Low Low High Saturation
(Hammers and Presses)
11. Automatic continuous lines 10-20% Low Low Low

15 Productivity grain due to state of art technologies is not presented in this table

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Forging Sector Energy Mapping – National Report November 2021

Utility specific Energy conservation measures

Table 16: Utility specific replication potential of ECM across forging clusters

Energy Replication Potential in short-term Replication Potential in long-term

S. (till 2025) (till 2030)
Technologies savings
No
potential
Micro Small Medium Micro Small Medium

1 IE3/IE4 motors 5-15% Low Low Medium High High Saturation

EE FRP Cooling towers with temperature control
2 and VFD / Fan less Natural draft FRP based 5-10% Low Medium Medium High High Saturation
cooling tower
Appropriate size of air compressor / Arresting air
3 10-30% Medium Medium Low High High Saturation
leakage and pressure optimization
4 PM Screw Compressor with waste heat recovery 20-30% Medium High High Saturation Saturation

5 Heat Pump 10-30% Low High

Use of EE Hydraulic power pack (with Servo
6 20-40% Low Low High Medium Saturation Saturation
drive) for Clamping application
EE retrofit of low friction metallic pipe for
7 10-30% Low Medium Saturation High Saturation Saturation
compressed air system
8 Energy Efficient Transformers 20-50% High Medium Saturation Saturation Saturation Saturation

9 EE Air conditioner / Chillers 10-25% Low Saturation Saturation Saturation Saturation Saturation

10 Automatic Power factor Controller 5-10% Medium Medium Saturation Saturation Saturation Saturation

11 Energy Efficient Blower 20-30% Medium Low High

12 Energy Efficient Pumps 20-30% Medium Saturation Saturation High Saturation Saturation

13 LED lights 10-50% Saturation Saturation Saturation Saturation Saturation Saturation

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Forging Sector Energy Mapping – National Report November 2021

Implementation of the energy saving, and state of art technologies will help in reduction of the
energy intensity in the long run. This will help the forging units to become more efficient and
competitive globally Summary of the energy saving potential for the different metal heating
technologies is presented in Table 17
Table 17: Summary of the energy saving potential for different metal
Energy Energy Estimated energy
Energy Saving
Metal consumption consumption BAU saving
potential (%)
(‘000 toe) FY 21-22 (‘000 toe) FY 30-31 (Mn toe) FY 30-31
IBH* -* 314 599 -*
Gas 2% 39 76 1
FO 100% 100 192 192
Total 22% 455 867 193
*Projected that in long run All FO will be converted to Gas / IBH cleaner technology, thus saving of IBH is balanced off
with additional power requirement for the new IBH, Net saving of 190 thousand toe will occur for FO

Projections of the different scenarios on account of the multiple interventions proposed for the
sector are presented in Figure 16. Proposed sector level SEC after implementation of EE and
state of art technologies in the long run till FY-2031 is presented in Table 18.

- Business as Usual

-- Adoption of EE technologies
-- Adoption of State of art technologies

Figure 16: Projections of energy consumption and savings

Table 18: Proposed long term Sector level SEC (kgoe/tonne)
Overall sector level SEC FY 21-22 FY 25-26 FY 30-31
Due implementation of EE measures 171 153 153
Due implementation of State of art and
171 149 130
EE measures

Proposed recommendations will help units in the forging sector to transit from conventional
technologies to newer cleaner technologies for the production. Based on the consultations and
penetration level of the EE, state of technologies and other cross cutting technologies will lead to

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Forging Sector Energy Mapping – National Report November 2021

change in the fuel mix for the sector. Projected fuel mix for the forging sector is presented in
Figure 17.

Share of Metal heating technologies

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31

IBH Gas FO

Figure 17: Projected share of metal heating technologies

Wider adoption of the IBH technology for the billet hating will eliminate the use of the inefficient
FO fired box furnaces. Use of the energy conservation measures will support the forging sector
to lower the SEC level and reduce the carbon intensity of the sector.

Adoption of the new technologies will help the forging sector, during the transition to cleaner
energy usage in the long run. Projections carried out on the basis of adoption of new state of art
technologies, advanced energy efficient technologies will help the forging sector to reduce the
carbon intensity in long run.

The share of electricity (cleaner fuel technology) is expected to grow up to 89% during
2030-31 from 72.6% during FY 22. Share of the fossil fuels (Oil) is expected to drop to
almost 0% during 2030-31 from 19% during FY 22.

Emission reduction and additional power requirement

Adoption of the new technologies such as IBH and other state of art technologies will help the
sector to reduce the carbon emissions and dependance on the oil in the long run. With use of the
IBH for the billet heating and gas and electrical furnaces will help the complete elimination of the
use of the furnace oil in the sector. With the change of the technology and adoption of the energy
conservation and state of art technologies the sector will help in lowing the carbon emission.
Details of the emission reduction with respect to the base year (2021) with BAU scenario is
presented in Table 19.
Table 19: Fuel consumption and Emissions proposed and BAU

Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Fuel Consumption and Emissions – BAU
Electricity Mn toe 0.32 0.34 0.37 0.40 0.43 0.46 0.49 0.52 0.56 0.60
Gas Mn toe 0.04 0.04 0.05 0.05 0.05 0.06 0.06 0.07 0.07 0.08
Furnace
Mn toe 0.10 0.11 0.12 0.12 0.13 0.14 0.15 0.16 0.18 0.19
oil

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Forging Sector Energy Mapping – National Report November 2021

Total Mn toe 0.46 0.50 0.53 0.57 0.61 0.66 0.70 0.75 0.81 0.87
Mn
Emissions tonne of 3.40 3.56 3.72 3.89 4.06 4.24 4.42 4.60 4.79 5.13
CO2
Proposed Fuel Consumption and Emissions
Electricity Mn toe 0.31 0.34 0.38 0.41 0.41 0.45 0.49 0.53 0.57 0.62
Gas Mn toe 0.04 0.04 0.05 0.05 0.05 0.06 0.06 0.07 0.07 0.07
Furnace oil Mn toe 0.09 0.08 0.07 0.06 0.05 0.04 0.04 0.03 0.01 0.00
Total Mn toe 0.43 0.46 0.50 0.52 0.51 0.54 0.58 0.62 0.66 0.69
Mn
Emissions tonne of 3.22 3.44 3.70 3.81 3.69 3.88 4.07 4.25 4.42 4.72
CO2

Adoption of the new technologies will help in the reduction of the 0.18 Mtoe during the FY 31.
Change in the fuel mix will help in the reduction of the emission level from 5.13 Mn tonne of CO2
(BAU FY2031) to 4.72 Mn tonne of CO2 ; these interventions will help the sector to reduce over
0.47 Mn tonne of CO2 emission during FY 2031. These transformations and adoption of new
technologies will also help the forging sector to reduce the SEC level by over 20%.
During the transformation phase additional power will be required to support the technology
transform from conventional furnace to the modern IBH. During the course adoption of the
technologies as described in the section above will help the sector to reduce the energy
requirement; also due to the transition from oil fired to gas fired and electrical technologies will
increase the electrical energy requirement to meet the transition toward low carbon economy.
Forging sector will require additional16 30 MW of power (over and above the BAU scenario) during
FY 2031 to support the technology transition phase. Considering the technology penetration levels
of 60% and 80% the additional power required by the sector during FY2031 will be 18-24 MW.
Details of the cluster level additional electricity requirement is presented next.
Delhi forging cluster uses the mix of the modern IBH, Gas fired furnaces and oil-fired furnaces for
heating applications. The forging cluster has a largest gas pipeline network; gas is used by units
for heating applications, where the gas pipe is available. Share of the cleaner fuels in the cluster
(gas and electricity) is around 92% for the forging units in this cluster. Fewer units still use the
conventional oil-fired furnaces (open die forging); gradually these units will switch to cleaner fuels
like gas or electricity. Units will adopt the gas fired furnaces which are producing larger forgings
(open die / ring rolling) and other units which carry out the smaller forging (close die forging) will
adopt IBH in the long run. Considering the scenario and discussion with multiple stakeholders
during the BEE energy mapping study, it is projected that additional electricity requirement for the
cluster till 2031 over and above BAU scenario (after adopting EE measures) will be in range of 1-
2 MW.
Ludhiana forging cluster uses the mix of the modern IBH, Gas fired furnaces and inefficient
conventional oil-fired furnaces for heating applications. Share of the cleaner fuels in the cluster
(Gas and electricity) is around 53% for the forging units in this cluster. Conventional oil-fired
furnaces are still predominantly used for heating applications (metal heating and heat treatment)
in several units; gradually these units will switch to cleaner fuels like gas or electricity. Units are
willing to opt for the gas fired heat treatment applications eventually once gas is available in the
cluster (Gas pipeline work is under progress in the cluster). Considering the projected scenario
and discussion with multiple stakeholders during the BEE energy mapping study, it is projected

16Power required is calculated based on the additional power required by the sector considering the present
production CAGR levels and average annual operation of 5400 hours by the forging units across different scales.

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that additional electricity requirement for the cluster till 2031 over and above BAU scenario (after
adopting EE measures) will be in range of 10-15 MW.
Bangalore forging cluster uses modern IBH and Conventional oil-fired furnaces for heating
applications, very fewer units use the gas fired furnaces for heat treatment. Share of the cleaner
fuels (Gas and electricity) is around 27% for the forging units in this cluster. Most of the units in
the cluster are doing open die / ring rolling operations and preparing the heavy and larger forging
products. These units will eventually shift to the gas fired operations in the long run. Units in the
cluster which are carrying out the smaller forging and close die forging have already been using
the modern IBH with best operating practices. Hence considering the viability of the gas fired is
higher as compared with IBH for the open die and ring rolling operations, larger units will adopt
the electrical heat treatment furnaces in the long run. It is projected that additional electricity
requirement for the cluster till 2031 over and above BAU scenario (after adopting EE measures)
will be in range of 1-2 MW.
Chennai forging cluster uses modern IBH (small and medium scale units) and old conventional
oil-fired furnaces (micro and small-scale units) for heating applications. Share of the cleaner fuels
(electricity) is around 76% for the forging units, which is predominantly used by medium scale
forging units. Most of the units in the cluster are performing close die operations and very few
units are carrying out open die for preparing the heavy and larger forging products. Oil is also
used across units of different scale for heat treatment applications. Smaller units in the cluster will
eventually shift to the IBH / gas fired furnaces operations in the long run. Considering the projected
scenario and discussion with multiple stakeholders during the BEE energy mapping study, it is
projected that additional electricity requirement for the cluster till 2031 over and above BAU
scenario (after adopting EE measures) will be in range of 1-2 MW.
Pune forging cluster uses the mix of the modern IBH, Gas fired furnaces and Conventional oil-
fired furnaces for heating applications. Share of the cleaner fuels (Gas and electricity) is around
67% for the forging units in this cluster. Conventional oil-fired furnaces are still used for heating
applications (metal heating and heat treatment) by the smaller units and units performing open
die operations; gradually these units will switch to cleaner fuels like gas or electricity. Units are
willing to opt for the gas fired heat treatment applications eventually once gas is available in the
cluster, hence gas pipeline strengthening is required across different parts of the industrial estate.
Considering the projected scenario and discussion with multiple stakeholders during the BEE
energy mapping study, it is projected that additional electricity requirement for the cluster till 2031
over and above BAU scenario (after adopting EE measures) will be in range of 2-3 MW.
Cluster level summary for additional electricity requirement over and above BAU scenario during
2031 is presented next.
Table 20: Additional electricity for technology transition (over and above BAU scenario)

Cluster No. of FO No. of Penetration of Electricity ~ Additional Electricity

Name Furnaces Induction IBH (%) consumption requirement (MW)*
Billet (present) (Million units) 60% 80% 100%
Heater
Ludhiana 110-120 130-150 40% 645 9 12 15
Bangalore 15-20 30-35 55% 40 1.2 1.6 2
Pune 25-30 90-105 70% 155 1.8 2.4 3
Chennai 10-15 30-35 70% 98 1.2 1.6 2
Delhi 60-65 40-45 40% 172 1.2 1.6 2
*Proposed values represent the additional electricity requirement in the cluster over and above BAU
scenario during 2031. Also, the units in the cluster have adopted the proposed EE & State of art

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recommendations. Units in different clusters will also adopt cleaner heating though NG and Hydrogen for
metal heating and HT in long run.

Additionally, technical and financial barriers along with regulatory support required for the
transition, and a detailed road map along with recommendations required to achieve the
projections are presented in the next section.

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 Forging Sector Energy Mapping – National Report November 2021

5. Recommendations and Implementation

Plan

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5. Recommendations and
Implementation Plan
Indian MSME forging units need to become more energy efficient to increase their
competitiveness and maintain profits, however forging units face following challenges in adoption
of EE technologies.
We have segregated those challenges and barriers mainly in 3 categories viz. a) technical
(covers mainly lack of awareness and capacity building), b) financial (covers lack of financial
capacities such as weaker balance sheets of MSMEs), and c) regulatory (covers mainly lack of
support infrastructure and skills). In addition to this, we have highlighted barriers which are
pertinent to MSMEs due to their small scale, unpredictability in demand, and their dispersion
across clusters.

Technical barriers
The use of outdated and outmoded technologies is a major challenge in the MSME forging sector.
Limited availability and weak linkages with suppliers, and low levels of knowledge on modern
technologies are the main reasons for lack of technology up gradation in the sector. Indian forging
MSME units need to become more energy efficient to increase their competitiveness and maintain
profits, however forging units face following technical barriers in adoption of EE technologies.

• Lack of consistent data on energy consumption and energy savings due to limited scope
for energy monitoring
• Inability to understand the complexities of the EE project i.e., baseline, adjustments to
baseline, energy performance contracting, M&V procedures, realization of savings etc.
• Fear of underperformance as well as disruption of routine manufacturing cycle due to
troubleshooting and change in plant load factors
• Lack of awareness on available EE technologies & limited capacities to evaluate cost-
benefit of EE technologies
• Limited access to energy auditors with sound technical knowledge and non-availability
testing facilities
• Lack of confidence in modern state-of-art technologies due to higher investment cost
• Force of habits resist any change in routine operating practices and lack of training on
importance and necessity of energy conservation
• Limited outreach to technology suppliers of EE technologies and ESCOs

Financial barriers
Implementation of potential energy conservation measures requires investments, either marginal
or substantial in order to realize energy savings. Energy efficiency generally perceived as a
secondary aspect when compared to the core business activity or is only considered when it
directly links to increase in production/output. This perception is also brought on by lack of
awareness about EE.

MSME specific barriers in EE financing:

• High upfront cost of EE technologies. Host entity (MSME) usually doesn’t use internal
funds for EE project financing

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• Rigid lending policies of banks; there are limited FI’s (banks, NBFCs) extending credit to
pure EE projects and on merits of project cash flow
• Limited access to capital due to weak balance sheets of MSMEs and requirement for
collateral
• The process of availing benefits and subsidy from EE schemes is complex and it takes
considerable time to receive the subsidy
• Reluctance to undertake energy study in their unit and bear the energy auditing cost

Financial institutes (Banks, NBFCs) specific barriers:

Energy efficiency investments usually do not generate additional tangible revenues, but rather
contribute to the earnings through a reduction in energy expenditures. This can make it difficult
for banks to identify and capture cash flows from such projects and treat energy savings as assets
of sufficient market value to justify a loan, despite the overall benefits which will accrue if
implemented.

• Concept of EE is still very complex to FIs due to lack of standard project assessment tool,
and most FIs show reluctance to develop technical capacities to evaluate projects
• EE projects are considered high risk projects with associated risks like technical risk,
performance risk, hence FIs have low confidence in the estimated energy savings
• Relatively small ticket size & high transaction cost of EE projects and FIs instead prefer
large investing into large capacity expansion projects
• Limited investment potential for EE at cluster/ sector level as compared to overall MSME
portfolio; FIs cater already very large portfolio for MSMEs through WC and business loans
• Lower resale value of assets in energy efficiency project

Regulatory and infrastructure related barriers:

In addition to technical and financial barriers lack of supporting infrastructure and regulatory
interventions also limit the uptake of EE interventions in MSME clusters.

• Though MSMEs fall under the priority lending category, EE does not fall under priority
sector lending unlike to RE as per RBI guidelines; hence benefits of low interest rates
cannot be transferred due to high-risk factor associated with EE technology and
performance risks
• Lack of supporting infrastructure for EE upgradation such as difficulties in getting
clearances for HT connection (implementing induction billet heating)
• Lack of incentives to adopt cleaner fuels such as non-availability of Natural gas pipelines
in some clusters and stringent policies for net metering
• Change in government regulation/policy related to pollution, and taxes and duties can
affect the viability of the unit
• Non-existence of skilling infrastructure to meet the ever-changing technology & processes

Miscellaneous
The above challenges have beleaguered the energy efficiency sector and limited its uptake. Now
further when we look specifically at the MSME sector we see that it has its own challenges which
has immensely restricted energy efficiency improvement in MSMEs even though there is a high
potential.

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• Unpredictability of future business due to global economic downturn, which may adversely
affect manufacturing activities in end user sectors of forged products
• MSMEs are spread across in small clusters hence catering to them is itself a difficult task
for both technology and capacity building activities
• Low awareness on various schemes of Govt. of India related to energy conservation
• High cost of production due to increase in fuel prices and non-reliable supply of fuels
• Lack of transparency in financial reporting, and unconventional business practices of
MSMEs also hinder their capacities to avail benefits of EE schemes
• It is a low priority segment services than large industrial plant due to perceived notion
about expected lower scale of business.
• Low priority segment for EE technology suppliers and financial institutes due to smaller
ticket size of EE loans and high transaction costs

SWOT Analysis
Lower productivity, ever rising fuel prices and rising cost of statutory compliances have become
major hurdles for the MSMEs. A SWOT (Strength, Weakness, Opportunity, and Threat) analysis
of Indian forging sector is provided below.

Strengths Weaknesses

• Steady domestic demands in the sector • Lack of information on international

• Key role played by active industry customers’ expectations
association i.e., AIFI, CICU in technology • Lower productivity & high manufacturing
adoption costs
• Availability of technology suppliers of • Use of outmoded and conventional
EETs technology
• Forward looking outlook of entrepreneurs • Limited funds for technology upgradations
Opportunities Threats

• Potential for adoption of EE technologies • Severely impacted by cyclical market trends

automation and state-of-art technologies • Non-availability of skilled manpower
• Govt. thrust on auto & manufacturing • Increase in global competition such as China
sector • Increase in energy costs and rising cost of
• Increase in domestic and export demand statuary compliances
in near-by future post-covid situation

Proposed Interventions:
Forging sector in India offers immense potential for energy savings through technology
upgradation, EE retrofits and adoption of operating practices. However, given the current levels
of EE technology penetration and the overall health of the MSME sector, there is a need of
innovative measures and policy interventions to increase the adoption of EE solutions in forging
MSMEs.

We have organized multiples stakeholder consultations with an aim of building consensus on the
outcomes and to seek inputs from a diverse set of stakeholders for drafting the recommendations.
This study provides a very useful service by putting together the experiences from the diverse set
of stakeholders and discussing identified interventions and their appropriateness & relevance.

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This policy roadmap takes into consideration the current situation when the forging industry is still
grappling with challenges due to the ongoing pandemic and challenging global competition. This
is a time when incentives can play a more significant role; a time when policymakers have the
opportunity to place conditions on grants and funding, which could include implementation of EE
technologies, achieving benchmarks for EE while supporting technology and process
improvements, and so on.

A long list of recommendations, prepared with in-depth consultations with MSME forging units,
Industry Associations, industry specific institutes and other decision makers in various forging
MSME clusters, is provided below. The actionable elements of the policy roadmap are integrated
along four broad and parallel tracks (figure 7):

a) Technology capacity building

• Awareness creations & B2B vendor interfacing platform
• EE Assessment tool for forging MSME sector
• Technology demonstration platform
b) Creating conducive environment for increasing EE adoption
• Energy management Centre
• Supporting ISO-50001 EnMS implementations and Promoting IoT Solutions
• Skill enhancement support from NIFFT, ARAI, NSIC, NSDC
c) Financial Incentives
• Capital subsidies on EE technology solutions
• Lower interest rates on EE loans and tax breaks
d) Regulations
• Ease of getting HT connections
• PAE Scheme

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Implementation Roadmap:

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Technology capacity building

Need Assessment:

MSMEs usually have limited technical abilities to evaluate EE technologies and limited outreach
to technology suppliers and service providers of EE technologies.

1. Limited technical capacities and weak linkages with suppliers are among the main reasons
for lack of technology up gradation in the cluster.
This could be addressed by increasing the frequency of awareness workshops on EE
technologies in presence of technology suppliers

2. EE investments are usually considered risky because of the uncertainties associated with
the performance of technological interventions and the difficulty in demonstrating savings.
MSME’s confidence can be enhanced by establishing replicable contracts for identified EE
technologies and building the capacities of local FIs in evaluating EE proposals

3. Many forging units in this cluster fall under the micro/ small category, hence they have
lower confidence on high investment state-of-art technologies
Technology demonstrations with a focus on hands-on training to enhance confidence of MSMEs
and provide touch-and-feel experience for state-of-art technologies

Awareness creations & B2B interfacing platform

We are proposing following interventions for creating awareness on techno-commercial feasibility

of EE solutions:

Proposed interventions:
a. Increasing MSMEs’ awareness through workshops on energy efficiency solutions, by
including a generous dose of positive case studies from other successful implementations

b. Provide the simplified case studies with calculations for the most relevant EE technologies
based on typical estimation of energy cost savings, payback period & IRR

c. Match making between potential vendors and MSMEs from clusters will help in adoption of
new and advanced EE technologies

d. Building the capacities of vendors and local service providers to strengthen the
implementation of EE measures and post implementation services and spares

Implementation roadmap:
1. Organizing the B2B workshops and focused technical seminars with the AIFI, CICU regional
chapters and technology providers. Technical workshops are to be designed to meet as per
the cluster process technology upgradation requirements.
a) Conducting workshop on state of art technologies (Flash-less forging, Hydraulic hammers,
continuous forging lines etc.) in progressive MSME clusters of Ludhiana, Bangalore, Delhi
and Rajkot.
b) Conducting workshops on IGBT induction furnaces, Gas based metal heating and HT and
furnaces in Delhi, Bangalore, Ludhiana, Pune forging MSME clusters

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c) 4 National level workshops on decarbonization solutions in forging sector with

solutions such electric heat treatment furnace, and applicability of hydrogen as a fuel
for heat treatment and metal heating.

2. BEE shall also deploy consultant for these awareness and capacity building activities. The
consultant will also assist in developing the case studies with support from AIFI regional
chapters and local industry associations for the new technology implementation

3. Technology workshops should be conducted on regular intervals (Each quarter- one workshop
in each cluster, one national workshop) to address the changing needs of the cluster and
development of new energy and resource efficient technologies.

4. These workshops shall include minimum 50 forging MSMEs and will also invite local institutes/
MSME departments. These workshops shall also include the case studies presentations from
technology vendors, with minimum 3-4 vendors for each workshop

5. Consultant will also provide support for the capacity development of ESCOs and LSPs in
executing EE projects and implementing the ESCO/ RESCO based projects. Consultant will
assist in developing the capacities for minimum 2 vendors/ OEMs/ ESCOs in each forging
cluster

6. Post workshop, Consultant will also provide support for dissemination of case studies and
these case studies to be circulated to forging clusters through national/ regional level
associations.

Developing EE assessment tool for financial institutes- Short term

Energy efficiency financing is inherently risky because of the uncertainties associated with the
technology risk, performance risk, and re-payment risk based on demonstrated savings. EE
assessment tool along with capacity building of local Financial institutions (FIs) can play a crucial
role in building the confidence of both MSMEs and FIs in EE technologies.

The tool will provide reliable information about estimate potential energy savings compared to
similar MSMEs, sector-wise Energy Efficiency measures implemented by similar MSMEs
understand equipment’s / utilities’ performance, identifying the potential energy savings
measures, and associated Investment and payback period.

a) Standard online tool which houses the technology compendium with typical use cases and
payback, IRR, NPV analysis.

b) Establishing standard contracts for Energy Efficiency project appraisal through sector specific
EE assessment tool

c) Developing the capacities of FIs (Banks and NBFCs) in evaluating EE proposals and sharing
standard EE project appraisal documents for faster loan disbursement

Implementation roadmap:
1. BEE may hire the consultant to develop this Energy Efficiency assessment tool for forging
sector.

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2. This will activity start with by carrying out an analysis of sector with respect to key sub-sectors,
energy consuming processes. BEE will leverage the detailed analysis carried out during the
mapping study

3. It will also involve Integration of sector/ sub-sector benchmarks SEC benchmarks data for
from this energy mapping study will be integrated into this EE assessment tool.

4. It will also involve identification of unit level parameters affecting SEC as an input variable for
such as sub-sector, annual production, type of fuel and fuel consumption

5. BEE will also leverage the list of EE technology solutions relevant to sector for suggesting EE
measures through assessment tool. BEE jointly with AIFI and other regional industry
associations (CICU) will shortlist the EE technologies based on their techno commercial
feasibility and financial viability.

6. The tool will perform the cost payback analysis – NPV, IRR, payback period. Banks / FIs can
know about potential EE Measures in MSMEs, attractiveness of the EE investments and the
cost savings and payback period,

7. BEE can also leverage the existing tools / or improvising existing tool prepared by SIDBI-
ISTCL other tools prepared under SAMEEEKSHA/ other ongoing IDA led interventions

8. BEE will develop the technical capacities of FIs (banks/ NBFCs) through this interactive EE
assessment and assisting in evaluating the techno-economics of EE technologies from the
tool.

Role of Industry Associations and local MSME DC/ DIC centers:

Industry associations can be positioned as opinion influencers among the local industrial
community, and ensuring ownership of association in all cluster events, workshops, B2B
exhibitions etc. and sharing of knowledge material like Case Studies.

National Institute of MSMEs: NIMSME, which mainly works in the areas of capacity building,
research, and job enrichment training, shall be leveraged for conducting workshops on creating
awareness on energy efficient and state-of-art technologies

Technology Suppliers: Support for B2B interactions and sharing of knowledge material like
technology brochures, and Case Studies

Project consultants and Financial Institutes: Developing the standard contracts for project
appraisal of EE technologies, developing EE assessment tool with NPV, IRR calculations for
faster loan appraisal process

Technology demonstration platform

One of the key findings of cluster level discussions was MSMEs were more likely to invest in EE
Technologies specifically in state-of-art technologies on the basis of recommendations from
peers. Hence, it has proposed that more demonstrations should be conducted in a front runners
and opinion leaders in the MSME clusters to enhance confidence of MSMEs and provide touch-
and-feel experience:

a. Technology demonstrations for state-of-art and advanced energy efficient solutions

b. Cross-cluster visit to near-by clusters for building confidence of MSMEs in advanced EETs

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Implementation Roadmap:

1. BEE will carry out such pilot demonstrations in coordination with cluster stakeholders such as
industry associations, technology suppliers

2. Industry associations to ensure participation from forging MSMEs, this will help in addressing
the perceived risks of investing in such EETs

3. BEE shall carry out 3-5 demonstrations in each MSME cluster group and invite participants
from near-by clusters for creating outreach and availing the benefits of cross learning.

For example- forging participants from Pune can be invited to Bangalore forging cluster; also,
Pune and Ludhiana cluster to Delhi / Rajkot forging cluster etc.

4. BEE will identify the demo projects based on clusters needs and product mix, progressive of
the cluster, available suppliers in the cluster etc. Below are the list some state-of-art EE
technologies relevant to respective MSME clusters:

EE Technology / solutions for demonstration Relevance to forging clusters

IGBT based Induction billet heating furnaces Ludhiana, Pune

Flash less forging All forging clusters

Ludhiana, Chennai, Bangalore,
NG based billet heating and HT furnaces
Pune
Installation of automated robotic forging lines All forging clusters
AI based enhancements for technologies and IoT
All Clusters
integration
Hydrogen as a fuel for heat treatment and other operations Chennai, Bangalore, Delhi-NCR

5. BEE shall identify the other industry decarbonizations such as Solar PV roof-top, community
solar, biomass, hydrogen as a fuel and various possibilities of electrification in forging sector
for demo projects.

6. BEE will invite local bankers for these technology demonstrations to apprise them about state-
of-art technologies. These demo’s will help reassure FIs of performance of EETs, which in
turn lead to technical capacity building within FIs, enabling them to better appraise such
interventions.

Creating conducive environment for increasing the adoption of

EE
MSME forging units need to become more energy efficient to increase their competitiveness and
maintain profits, however due to lack of supporting infrastructure in MSME clusters, forging
owners face various challenges in adoption of EE technologies:

1. Poor practices on energy management, lack of consistent data on energy consumption

limits the scope for realizing the benefits of energy efficiency
This could be addressed by promoting ISO 50001 EnMS and IoT technologies, this will help
MSME units to adopt the energy monitoring practices

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2. Lack of supporting infrastructure such as limited access to energy auditors, non-availability

of testing facilities limits the uptake of EE technologies
A permanent Energy Management Centre at cluster level with energy auditing facilities, testing
instruments and common utility solutions

3. Non-existence of skilling infrastructure to meet the ever-changing technology needs and lack
of standard curriculum on energy conservation
A range of skills with a focus on hands-on training are required to operate new technologies, to
adopt best operating practices and comply with minimum EE efficiency standards

Developing the ecosystem for the energy monitoring by supporting ISO 50001
EnMS implementations in MSMEs
Need Assessment:

Energy Efficiency efforts are often plagued by lack of consistent data on energy and operations;
therefore, push is required to promote energy monitoring practices and technologies. Energy
monitoring will also ease out the M&V process where EE implementations are taking place.

During our study in Bangalore and Ludhiana cluster, it was emerged that submetering of Gas fired
heat treatment furnaces could help to enhance their energy efficiency improvement attempts.

In typical forging it is very essential to select proper type & size of metal heating furnaces, operate
the equipment scientifically with proper measurements by giving due focus to the energy
monitoring and by regular energy audits which can highlight the potential areas for energy
conservation.

Proposed interventions:
ISO 50001 EnMS will help the MSME units to develop the EE culture, adopt the energy monitoring
practices and sustain the benefits of energy conservation measures. It will also ease out the
Monitoring & Verification process where EE implementations are taking place.

a) Technical consulting services for ISO-50001 certification in selected MSME clusters (10
MSME units in each forging cluster)

b) Workshops on creating awareness on ISO-50001 and training on ISO-50001 protocols - The

frequency of workshops on energy management system must be increased, with a focus on
including a generous dose of positive case studies from other successful implementations.

Implementation roadmap (1 Year timeline):

a) Market assessment: Identifying progressive MSME clusters and early adopters in each cluster
for implementation of EnMS (1-2 Months)
c) Launch Workshop- National level launch workshop in support with AIFI and 3-4 cluster level
workshops with local industry associations- (3-4 months)
d) Technical consulting services in 5-10 MSMEs in each of identified MSME clusters (3-6
Months)

a. Energy Review of Facilities, Equipment, Systems, Processes and Personnel.

b. Energy Baseline Setting, Derivation of EnPIs and Performance Process.

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c. Development of energy policy, implementation, and development of Internal Auditors

e) Support for EnMS certification through accredited bodies and organizations (6-12 Months)
f) Building capacities of local service providers and local consultants for sustenance of EnMS
culture at local level and building markets for ISO-50001 (11-12 Months)
g) Dissemination workshop at cluster level for sharing the learnings and felicitations of adopters
on EnMS (Month 12)
Major stakeholders and their responsibilities

Bureau of National
Industry Project
Energy Institute of
Associations consultants
Efficiency MSMEs

• Industry Associations: Industry associations can be positioned as opinion influencers

among the local industrial community and ensuring ownership of inviting member MSMEs
to cluster events, workshops etc. and sharing of knowledge material like Case Studies.

• Project consultants:

• Identification of interested MSME units for ISO 50001 certification

• Consulting services for EnMS implementations and certifications

• Carry out awareness workshops on importance of ISO 50001- EnMS

• National Institute of MSMEs: NIMSME, which mainly works in the areas of capacity
building, research, and job enrichment training, shall be leveraged for conducting
workshops on creating awareness on ISO-50001 and training on ISO-50001 protocol

• Bureau of Energy Efficiency: BEE can provide services for technical consulting services
for ISO-50001 certification in selected MSME clusters. BEE can engage project
consultants to provide these consulting services.

Benefits to sector stakeholders

• Energy management system will build a culture of sub-process level energy benchmarking

• Ease out the M&V process where EE implementations are taking place.

• Help in strengthening the ESCO based projects, establishing the baselines and also help
in better evaluation of the savings.

Promoting Internet of thing (IoT) systems & energy monitoring

technologies – Short Term
These IoT systems provide access to real-time equipment performance, energy consumption, and
building l data to support a smarter, data-driven maintenance strategy. Hence, push is required
to promote IoT systems and energy monitoring technologies.
a) Linking IoT technologies with ISO-50001 for realizing the energy savings of installed EETs

b) 2-3 demo projects in few progressive MSME clusters on IoT technologies for hands-on-training

c) Providing incentives and subsidies on IoT and energy monitoring solutions

d) B2B matchmaking between MSMEs &vendors and building capacities of LSPs

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Implementation roadmap (2 Year timeline):

1. BEE will link this activity with ISO-50001 EnMS implementation, BEE will leverage the MSME
premises where ISO-50001 implemented for carrying out demo projects on IoT systems

2. BEE will make these IoT systems and energy monitoring equipment mandatory as a pre-
requisite for ISO-50001 implementation, however, BEE will provide upfront subsidies on
installation of these energy monitoring technologies

3. BEE will carry out these demo projects in 2-3 units in prominent MSME clusters.

4. The timeline for this activity would be 2 year, where first 3 months would be installation and
certification of EnMS. Next 9 months would be for monitoring and assessing the benefits of
EnMS implementations and IoT installations.

5. Second year onwards, MSME units will be invited for demonstrations. BEE in association with
industry associations will invite MSME units for hands-on-training

6. BEE will support in inviting technology vendors of energy monitoring solutions on common
platform and creating awareness by sharing case studies on successful implementations

7. BEE will assist in building capacities of local service providers in forging clusters to implement
energy monitoring solutions in MSME forging units

Relevant stakeholders:

Industry Technology India Smart

Associations vendors Grid Forum

Role of various actors/ stakeholders

Technology vendors: Support for B2B interactions and sharing of knowledge material like
technology brochures, and Case Studies

Industry Associations: Ensuring ownership of forging units in all cluster events, workshops, B2B
exhibitions etc.

India Smart grid forum: It can help in creating awareness on state-of-art IoT systems and assist
in organizing B2B vendor exhibitions for promoting of these technologies. Smart grid forum can
also help in identifying IoT technologies eligible for subsidies and incentives.

Benefits to sector stakeholders

• Increase awareness on energy monitoring solution and explaining direct and in-direct benefits
of IoT system

• Help in strengthening the ESCO based projects and establishing the baselines faster.

• Energy monitoring systems will also help in better evaluation of the savings.

Energy Management Centre (EMC) at cluster level- Mid term

Need Assessment:
During energy studies it was identified that limited access to energy auditors and lack of
handholding support to MSMEs limits the EE implementations in MSME clusters. Many forging

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units in the sector fall under micro category with limited financial capacities, hence they have
limited funds to invest into energy auditing activities and high-cost investments solutions.

Proposed interventions:
We propose to have permanent Energy Management Centre at each major forging cluster. We
propose to establish a common facility, may at Industry Associations premises, to provide services
for energy auding, testing facilities and common utility solutions. We are proposing following
interventions for creating the ecosystem for EE interventions in MSME clusters through this EMC:

• Demonstrate the direct, in-direct benefits of EE technologies through energy auditing

services

• Access to energy auditors and building the capacities of local consultants on carrying out
energy auditing activities

• Providing common testing and utility solutions for forging MSMEs in the cluster.

Implementation roadmap (2 Year timeline):

1. BEE will provide its support to local associations for developing Energy management
Centre at cluster level.

2. Establishment of EMC will be done in 1 year and for the next year BEE will provide
handholding for supporting various activities of EMC
3. BEE will support in identifying local auditors, provide them hands-on training followed by
sample energy audits through experts with forging specific energy audit experience

4. BEE will also support in encouraging plant heads and production managers of forging units
to enroll for energy auditor and energy manager examinations

5. BEE will support in reskilling of certified energy auditors for forging focused audit in each
forging cluster

6. BEE will provide support for establishing standard energy audit template for Energy
Efficiency project evaluation

7. BEE will also carry out awareness workshops through energy auditors to be led by EMC
in cluster and inviting testimonials from plant managers of forging units

Functions of Energy Management Centre:

a. Energy Auditing facilities:

• Conduct energy audits at subsidized rates for forging MSMEs. BEE may consider linking
these energy auditing activities with PAE scheme for additional benefits
• Provided end-to-end hand holding support to MSMEs for installation of the EE projects
• Developing capacity of local consultants in conducting energy audits, walk-through audits

b. Common testing facilities:

• Establishing of a common center for providing services related to Computer Aided Design
(CAD), CAM for die development

• Establishing of a common testing facility to provide services for testing facilities such as
forged component strength testing, Coordinate Measuring Machines (CMM) and

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radiography which will help in reducing rejection rates and increasing production hence
increase in SEC.

• Liaison with NSIC, MoMSME, IAs, to hold such facilities at their premises

Relevant stakeholders:

Industry Technology DI-MSME &

Associations vendors MSME-DIC

Role of Industry Associations and local MSME DC/ DIC centers:

Industry associations can be positioned as opinion influencers among the local industrial
community, and ensuring ownership of association in all cluster events, workshops, B2B
exhibitions etc. and can also host the common facility center at their premises

DI-MSME/ MSME-DIC: Establishment of a common facility center at MSME DIC premises to carry
out demonstration/ pilots in coordination with cluster stakeholders.

NSIC Technical Services Center (NTSC): NTSC can assist in developing common testing
facilities at their center along with services for stimulation and CAD/ CAM for prototype
development

Technology Suppliers: Support for B2B interactions and sharing of knowledge material like
technology brochures, and Case Studies

Skill Development in forging MSME sector

Need Assessment:
Non-existence of skilling infrastructure is the major hurdle in adopting the ever-changing
technology & processes. A range of skills are required to operate new technologies, to adopt best
operating practices and comply with minimum EE efficiency standards.

Proposed interventions:
We are proposing to leverage and expand existing center of excellence institutes such as NIFFT
Ranchi, ARAI forging division - Pune and NSIC Technical Services Centre in Rajkot, Pune, New
Delhi etc.

• Leveraging National Institute of Foundry and Forge Technology for hands-on-training and
holding diploma courses on forging technologies

• Leveraging ARAI forging center located in Pune for promoting soft interventions such as 5S,
Kaizen etc.

• Leveraging NSIC Technical Services Centre and National Skill Development Centre for
developing curriculum on skill development on forging specific technologies

Implementation roadmap (2 Year timeline):

A. Leveraging National Institute of Foundry and Forge Technology- (Month 1- Month 12)
National Institute of Foundry and Forge Technology (NIFFT), Ranchi is a public engineering and
research institution in Ranchi. During consultations, there was a need felt across the AIFI and
CICU (Ludhiana) to leverage this premium institution for preparing the new skillset for the work

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force in the forging sector. This institution can play the leading role in developing the new age of
the skillset required by the industry to meet next generation of technological advancement.

1. NIFFT to set up a series of training and diploma courses for the operating level staff on best
operating practices in forging units. These courses can be developed jointly with industry
stakeholders, NSDC and BEE, being the nodal agency on EE in India.

2. NIFFT possibly with support from BEE and/or MoMSME can support in conducting hand-on
trainings for skill enhancement of shop-floor workforce around energy efficiency technologies.

Some such technologies include

a. AI/ ML based enhancements for process technologies and IoT integration

b. Hydrogen as a fuel for heat treatment and oxyfuel burner operations
3. NIFFT to consider developing various local chapters at key Foundry and Forging clusters
across India in consultation / collaboration with prominent industry associations.

B. Leveraging Automotive Research Association of India (ARAI) Forging division Pune

Automotive Research Association of India (ARAI) serves hundreds of customers in a year

including Automotive OEMs; Engine, Component and Systems Suppliers; large number of SMEs
etc. ARAI‟s forging division organizes training and undertakes R&D projects as well as testing
and validation

1. Conducting programs on forging technology and subjects which indirectly aid efforts to reduce
cost / increase productivity e.g., 5S, TPM

2. Conducting customized corporate skill enhancement training program covering various areas
of forging operations, quality, and management

3. Guiding in layouts for smoother material / process flow and efficient operations

C. Leveraging NSIC Technical Services Centre and National Skill Development Centre

NSIC through 'NSIC Technical Services Centers’ (NTSCs) provides technical support to MSMEs
include skill development in Hi-Tech as well as conventional trades, product testing at testing
laboratories accredited by NABL, energy audit, environment management etc. NTSC Rajkot is a
most credible organization in the field of Energy Audit, testing facilities authorized by Govt. of
Gujarat.

During consultations, NTSC has shown interest in collaborating with BEE for creating knowledge
base and ecosystem for scaling up the implementation of EE technologies. We envisage that
NSIC, through its extensive experience, to perform the duties and support BEE in:

1. NSIC in support with NSDC to develop professional training courses and curriculum for the
operating level staff on EETs and best operating practices in MSME forging units.

These courses can be developed jointly with BEE, being the nodal agency of the Govt. of
India on energy efficiency matters in the country.

The National Skills Qualification Framework (NSQF) theoretically makes it possible

to drive competency-based training for every job role in industry. Framework from
NSDC on National Occupational Standards (NOS) will be followed for creating course
curriculum.

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NOS specify the standard of performance an individual must achieve when carrying out a
function in the workplace, together with the knowledge and understanding they need to meet
a standard consistently.

• Each NOS defines one key function in a job role.

• Each NOS must be a concise and readable document,
• Each NOS usually consisting of no more than five or six pages (some are only 1 or 2)
• NOS describe functions, standards of performance and knowledge / understanding.
It is possible for all current vocational courses, like, ITI Courses, or similar vocational
courses in polytechnics, to be aligned to job roles (including forging sector) at specific NSQF
Levels. For Example- An ITI Course in Plumbing would say they are training for plumbers
at NSQF Level 3. Similarly, a polytechnic, training in fashion design, may say it is training
for NSQF Level 5 for Garment Cutters.

2. NSIC possibly with support from BEE can support in creating the ecosystem for scaling up
the implementation of some of the state-of-the-art technologies through live
demonstrations

• Some such technologies include Automated forging lines, flash less forging, Hydraulic
hammers, VFD based forging clutch presses, Gas fired heat treatment furnaces etc.
3. Establishing of facilities such as for Computer Aided Design for dies for flash less forging

D. Leveraging local universities, ITIs and other institutes for developing EE curriculum

Leveraging local institutes, universities, and centers for developing courses on Energy
management- in Rajkot NSIC-NTSC, NIIST Mandi Gobindgarh , Karnataka German Multi Skill
Development - Bangalore, Central tool room in Ludhiana etc.
1. Inclusion of the technical courses on energy management and conservations and inclusion
of Advanced Diploma courses in local ITIs

2. Develop curriculum for professional courses in forging processes and technologies

through consultation with stakeholders

Benefits to sector stakeholders

a. This will prepare the workforce ready to implement best practices and energy efficient
technologies in the sectors
b. Different forging clusters will have easier access to the centers of excellence
c. Skilled labor will empower the units to adopt the new technologies.
Relevant stakeholders:

National Skill development National Institute of

BEE
Corporation MSMEs

Role of various actors/ stakeholders

BEE: Assist in providing finance for procuring state-of-art technologies for hands-on-training at
NSIC center and local skill development institute

Industry associations shall ensure inviting member MSMEs to trainings and workshops for
capacity development

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National Institute of MSMEs: NIMSME, which mainly works in the areas of capacity building,
research, and job enrichment training, shall be leveraged for developing the technical courses on
energy management and conservations

National Skill development Corporation: Assist in developing training courses and curriculum
on in forging processes and technologies and deploying local resource for continuous
improvement at cluster level

Financial incentives for EE Technology adoption

Need Assessment:
Energy efficiency generally perceived as a secondary aspect when compared to the core business
activity or is only considered when it directly links to increase in production/output. Higher cost of
energy efficient technologies due to advanced features and lack of upfront capital in MSMEs
remained one of the biggest hurdles in adoption of EE technologies

Proposed interventions:
Capital Subsidy scheme is most popular and see significant uptake as it offers to reduce the
burden of high upfront cost of EE projects along with simplified process of availing subsidies.

Capital subsidies on EE technology solutions

We are proposing following interventions cater the needs of MSMEs. CLCSS has seen significant
uptake in MSMEs and has been operational for two decades

a. Increasing the limit of capital incentives under CLCSS, both maximum subsidy amount (15
lakhs) and applicable loan amount (1 Cr.) under CLCSS
b. Higher % of capital subsidies on EETs for differentiating from productivity improvement
c. Increase the purview of technologies and sectors under existing subsidies schemes

i. Robotic forging lines

ii. Gas based billet heating and HT furnaces with PLC based control

iii. Multi axis Machining center (5/6 Axis)

iv. IoT based EMS

v. Heat pumps and WHR for electroplating

vi. Die development for flash less forging

Implementation roadmap:

a) Awareness and cluster level engagement is essential for capital subsidy scheme as well.

b) Some forging clusters have finds wider adoption of these schemes however majority of the
units in the different clusters still lack the knowledge of the different schemes.

• Conducting the workshops for promoting the awareness of the financial schemes across
clusters of Pune, Ludhiana, Jalandhar- Phagwara, Chennai, Rajkot etc.

c) Even though capital subsidy schemes are highly accepted in MSMEs it is vital that it
incorporates important features like simple application process, quick approval and

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disbursement of subsidy, wide coverage of technologies & MSME clusters and awareness
of the scheme.

d) Regional level consultations should be conducted across all forging cluster to draft the
possible recommendations for the faster and wider adoption of these schemes.

e) After consolidating the inputs received, AIFI, CICU and other prominent regional industry
associations along with BEE can conduct the stakeholder consultation with MoMSME for
further simplification of the processes.

Lower interest rates on EE loans and fasten disbursement

The prime objective of this mechanism is to promote ease of financing for the adoption and
implementation of energy efficiency measures across all the selected sectors (mainly demand
side).
1. List of EE technologies applicable for interest subsidies based on minimum threshold
2. Building the capacities of Financial Institutes in loan appraisal for EETs
3. Quick and fast disbursement for adoption of EE technologies
Differential taxes on EE technologies
A tax exemption will allow the purchaser of an equipment, such as an energy-efficient technology,
to be exempt from paying tax on that purchase. Tax credit can also be provided to allow MSMEs
to deduct the tax credit amount from their annual taxes as a percentage of a purchase price.
1. Charging lower GST and differential tax breaks on purchase of EE technologies.
2. Different GST slabs based on EE potential of technologies
Implementation roadmap:

Regional level consultations should be conducted across all forging cluster to draft the possible
recommendations for list of technologies that should be included in this scheme.

• We propose one workshop in each Custer for compiling the requirements of the different
forging units.
• After consolidating the inputs received, AIFI can propose a consolation with BEE and
relevant stakeholder consultation for addition of most relevant technologies in the list.

Benefits to sector stakeholders

a. Increasing affordability of energy efficient technologies

b. Faster replication and adoption of new & advanced technologies

Relevant stakeholders:

BEE MoMSME Commerical Banks SIDBI

Role of various actors/ stakeholders

• BEE: Providing list of Energy efficient technologies applicable for incentives and subsidies
• Commercial banks- Developing in-house capacities on evaluation on EE technologies
and ready reckoner for quick sanction & faster loan disbursement

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• MoMSME: Revised guidelines for capital subsidies schemes and shortlisting EE

technologies for GST breaks and differential taxes on EE technology solutions.
• SIDBI – Expanding the capacity building of industries and FIs, standardization of the
project documents

Collaboratives efforts among institutional stakeholders and IDAs

Need Assessment:
State specific departments and institutes participate minimally in implementing centrally funded
support programmes. The wider reach to state specific institutes coupled with increased
ownership can significantly improve the outcome of existing schemes. Support from DICs, state
ministries and departments are needed to facilitate better implementation.

Proposed interventions:
There is a need felt across clusters to leverage other institutes for promoting of EE interventions
in the MSME forging clusters. We are proposing following interventions for institutional capacity
building

Collaborative Efforts among various institutes:

a. Building capacity of SDAs/MSME-DI, to include a full time EE-MSME expert to facilitate
MSMEs in availing benefits of existing cluster specific schemes

b. Support from SDAs and DICs is needed to facilitate better implementation and collect
timely feedback on the performance of energy efficiency programmes.

c. The wider reach of state government agencies, coupled with increased participation can
significantly improve the outcome of existing schemes

Creating synergies with IDAs led existing EE interventions

a. Identified IDA led (GIZ programme in secondary steel and paper sector) ongoing EE
interventions in MSME clusters and exploring options for synergies for capacity building
and technology demonstration activities

b. Combining IDA led EE financing schemes and revolving funds (EESL UNIDO EMRF fund)
with technical assistance activities of BEE in forging MSME sector

Implementation roadmap:

a) Developing the common platform to map the different initiatives carried out for the forging
sector by the different stakeholders. This will result into propagating the benefits and
learning captured in different program through web portal accessible to forging units.
b) Strengthening of SDA, DICs and regional association for wider dissemination of the
learning to the forging units in their respective regions.
c) Creating the common platform for exchange of thoughts and ideas among the regional
stakeholders to identify the key areas for development.
d) Establishing the long-term programmatic interventions focused for specific cluster led by
one IDA or collaborative efforts - including the capacity building programmes, technology
demonstration, hand-holding support for implementations.

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e) Developing new focused programs for forging clusters where limited or less program
intervention has been carried out in the past. Developing long term energy management
centers across clusters of Ludhiana Pune, Delhi, Rajkot etc.
f) Programmatic interventions should leverage cross -cluster learnings and interventions of
different IDA in other clusters through knowledge exchange programmers and industry
tours and hand-o training in center of excellences.
Benefits to sector stakeholders

a. Developing the collaborative ecosystem for wider outreach of programmatic activities

b. Different forging stakeholders will have increased awareness and access to various cluster
specific interventions
c. Removing the duplication of efforts among various stakeholders.

Relevant stakeholders:

International development
BEE DICs/ MSME DI SDAs
agencies

BEE: Engaging all stakeholders at the inception of the programme and ensure ownership from
them by highlighting mutual benefits and opportunities for synergy

MSME DI: Creating awareness on current initiatives among MSMEs at cluster level and support
during awareness workshops by inviting MSMEs in the cluster

International development agencies (IDAs)- Supporting ongoing BEE interventions through

bundling with ongoing EE financing schemes and revolving funds

Creating supporting infrastructure for EE technology upgradation-

In addition to this lack of supporting infrastructure and regulatory support also limit the uptake of
EE interventions in various MSME clusters in forging sector. For example: MSMEs usually find
difficulties in getting regulatory clearances to shift from Low Tension to High Tension connections
which limits the uptake of induction furnaces.

1. Ease of regulations from DISCOMs:

a. Easing the upgradation from LT connections to HT connections, create a bridge between
MSME industries & DISCOMs
b. Additional financial incentives for technology upgradation which wit lower the overall
projects costs related infrastructure upgradation
c. Developing ready reckoner and list of documents required for getting the clearances
BEE appointed project consultant will understand the regulations and need assessment at MSME
level.
2. Extension of Natural Gas Pipelines:
During energy audits in Rajkot cluster, it was emerged that there are some industrial areas
where Natural gas pipelines are not available.
a. Strengthening & extension of the Natural Gas pipeline within clusters mainly in Ludhiana,
Pune and some areas in Rajkot and Delhi -NCR
b. Prioritizing availability of Natural Gas pipelines across all energy intensive forging MSME
clusters

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BEE appointed project consultant will do study to identify industrial areas where NG pipelines are
not available

3. Easing the net-metering policies and wheeling charges support for solar roof-top
installations in MSMEs

BEE appointed consultant with the help of MNRE, gap assessment and interventions required

Benefits to sector stakeholders

a. Evaluation of technical viability of EE technologies, cost benefit assessment

b. Access to cleaner fuel by switching to electricity and NG, hence reduction of emissions
c. Easy access to energy auditors in the clusters and support during implementations

Relevant stakeholders:

BEE Industry Associations Gas Authorities DISCOM

Role of various actors/ stakeholders

Industry Associations: Holding the energy management cell in the cluster and outreach to
forging MSME industries in the cluster

DISCOMs: Easing out the process of upgradation to HT lines and assist MSMEs in providing
required documents for clearance and approval

MSME DI in collaboration with Gas Companies can assist in getting the clearances for
extending Gas pipelines in industrial MSME clusters

BEE- Supporting in carrying out regulatory interventions in the cluster for HT connection
upgradation and NG lines in the cluster

Performance Achieve and Earn (PAE) Scheme:

Learnings from the Perform Achieve Trade (PAT) scheme should be extended to the MSME
sector. These mandatory programmes should not be perceived by MSMEs as an administrative
burden; therefore, the incentives should be provided based on EE potential achieved.

Considering the fact that SMEs already face significant barriers to energy efficiency
implementation, proposing a scheme which penalizes SMEs on non-compliance may widen the
relationship gap between the government and enterprises and create extra burdens on these
enterprises. Therefore, an incentive-oriented compliance mechanism (e.g., offering ESCerts
based incentives) is proposed.

Proposed interventions:

Programme coverage: In the pilot phase for Forging across 10 clusters covering over 200.
Different clusters that can be considered under the programme include- Rajkot, Pune,
Coimbatore, Ludhiana, Jalandhar, Phagwara, Chennai , Bangalore.

A mandatory audit programme will help policymakers and regulators identify major energy
efficiency bottlenecks and opportunities to intervene at scale. However, enterprises may perceive
mandatory energy audits as an added administrative burden, hence, they can be incentivized by
providing free/ subsidised energy audit services

Implementation Roadmap:

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As a first step, energy audits must be made mandatory in the next 3-5 years for all energy intensive
forging units having an annual turnover of more than INR 50 crore (medium scale units); this can
later be extended to enterprises having turnover of more than INR 25 crore.

• The pilot for this program will cover about 10 MSME forging clusters across India.
• BEE team in close consultation with national forging association (AIFI) will navigate the
execution of this programme.
• Interested SMEs can opt for the energy savings programme by reaching out to Industry
Association. Industry associations will be given ownership to register the MSMEs for
programme and to engage with them in a meaningful and sustainable way
• BEE will promote the voluntary uptake of energy conservation by carrying out the energy
audits in MSMEs and assign targets for reduction of their specific energy consumption
• BEE appointed agency will carry out baseline energy audit as per prescribed format of
BEE, recommend ECMs for energy saving and techno-commercial feasibility for EE
solutions
• BEE will also provide handholding support to MSMEs during implementation phase
• SMEs that achieve or exceed the reduction targets would be issued ESCerts based
monetary incentives. MSMEs will be required to achieve a minimum of 30% of the agreed
targets
• BEE will also assist in building confidence of MSMEs by technology demonstration and
create awareness on EE solutions and technologies.

Relevant stakeholders:

Stakeholders Key Activities and Task

Roll out of the pilot phase of PAE scheme, Selection and procuring services of
BEE
EA agency for baseline energy audits, issuing ESCerts to MSMEs

Project Carry out baseline energy audit as per prescribed format of BEE, recommend
Consultants ECMs for energy saving and techno-commercial feasibility for EE solutions

Industry Disseminate the programme objectives across different clusters through

Association workshops and collating expression of interest from different forging clusters

Support EA agency appointed by BEE, facilitate EA study, sharing of the

MSME
details and data requirement for baseline study

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Annexure

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A. Production processes and technology

adopted

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A. Production process and technology

adopted
Forging is the most energy intensive process and energy cost accounts for about 20–30 percent
of the total manufacturing cost. The primary process steps in metal forging are metal cutting, metal
heating, forging, heat treatment, and finishing. Of these, metal heating is the most energy-
intensive operation and accounts for 50-70 percent of the total energy consumption in typical
forging unit; while the balance is used in heat treatment, forging presses, shot blasting, trimming,
coining & auxiliary operations.

Type of production processes in forging units

Different processes in the forging
units can be classified under the
following broad heads, as shown in
Figure 18.
➢ Metal preparation
➢ Metal Heating
➢ Metal Forming
➢ Machining and Finishing

Figure 18 Typical production process in forging

units

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Metal Preparation
Raw material for the forging process is received by the industries in form of billets, rods, bars etc.
These are cut in bandsaw machine or shearing machine in the form of billets as per weight
required and the desired size and
length according to the product to
be formed. Final sized metal piece
is sent to next stage of metal
heating
Bandsaw is predominantly used
for billet cutting across the
different forging clusters.
However, some units in Ludhiana,
Chennai and Bangalore also use
shearing machines for cutting of
the billets and strips.

Metal heating
Induction billet heaters/ oil and gas fired furnaces are used for metal heating processes. Metal is
to be heated above the recrystallization temperature (around 75% of melting point) of the metal
alloy. At this temperature metal can be easily deformed to the desired shape. Based on the grades
of the ferrous alloys, billets are heated up to a temperature range of 1200 – 1250 ⁰C depending
upon the composition of alloys (carbon %).
Induction based heating is predominately used for billet heating in the Pune, Chennai, and
Bangalore forging clusters. Oil fired furnaces are predominantly used for metal heating in the
Ludhiana and nearby forging clusters. Gas based heating is widely adopted for metal heating in
the Delhi-NCR cluster.

% Share of different heating technologies in units

100%
7%
30% 22%
80% 45% 50%
60% 45%
60% Gas
10% FO
40% 70%
70% IBH
55% 48%
20% 40% 40%

0%
Bangalore Chennai Delhi-NCR Ludhiana Pune National

Figure 19: % share of metal heating technologies across prominent forging clusters

Induction share ~ 70% share in the metal heating for forged products (production volume in
tonnes) followed by the oil fired furnaces which contributes to ~ 22% share of metal heating
(production volume in tonne).

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Metal forming
Metal forming process involves the deformation of the workpiece into the desired shape and size
by the application of the external force. Forging (forming) process involves the plastic deformation
of the workpiece through a single or number of deforming operations depending upon the
complexity of the product. A temperature of about 1,250 °C is maintained for forging operation

Closed Die forming process

Closed die metal forming (impression die
forging) is a process in which a piece of metal is
formed under high pressure to fill an enclosed die
impression. Using closed die forging, products
with complex shapes and closer tolerances can be produced, which require less or no machining.

Special shapes require more than one forging operation to reach final shapes and dimensions.
In closed die forging, metal pieces weighing from 500 gm to 5 tonnes are forged. It is performed
either in presses or hammers.

Drop Hammers, Screw Presses and Pneumatic clutch operated electrical motor driven presses
are used for the close die operations in different forging clusters.

Open Die forming process

Open die forging generally caters to larger
forged products. In this forming process
hammer strikes and deforms the workpiece,
which is placed on a stationary anvil. During
forging process dies do not enclose the
workpiece, allowing metal to flow except
where contacted by the dies. It comprises many process variations, thus, allowing a broad range
of shapes and sizes to be produced. Multiple hammer hits are required to get the desired shape

Using open die forging, products with finer grain size, better fatigue resistance and improved
microstructure can be produced. In open die forging, metal pieces weighing from few kilograms
to 10 tonnes are forged.

Pneumatic hammers are widely used for the open die metal forming operations in Ludhiana
Bangalore, Phagwara, Pune forging clusters.

Hydraulic hammers are widely adopted by the forging units in Delhi-NCR forging clusters.

Ring Rolling
Ring rolling produces seamless rings with forged
properties, which results in optimum mechanical
properties, and predictable and efficient machinability. In
this process hot metal rods are flattened with the help of
the drop hammers (flattening), then a piercing process is
used to make the hole in the centre of the hot metal.

Donut shaped metal is then rolled between the rollers which move toward each other to form a
continuously reducing gap and squeezing into a thin ring. Advantages of this process are lower

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tooling cost, better strength. These products find applications in heavy engineering, mining, off-
highway equipment, and other critical applications.

Forging units in the Bangalore and Phagwara clusters carry out this forging processes to form the
metal rings ranging from a few inches to a few meter (outer diameter).

Trimming and coining

Once finish-forging is completed, the flash (excess metal) is removed either manually or with
trimming dies. Majority of units in Pune use trimming die for this purpose. Screw presses with
electrical motors are used for trimming and coining operations.
Coining is predominantly done for the forged products where a circular hole is to be made, the
metal is removed from the forged product by shearing process – often called coining.
Coining is predominantly. used for the multiple forging for the auto industry. Trimming is carried
out for almost all forged products for flash removal.
Advanced metal forming machines are now capable of producing the flash less forged products
which has almost no flash. Flash less forging is being done by fewer progressive and front runners
MSMEs across the Ludhiana, Phagwara and Bangalore forging clusters.

Heat Treatment
Heat treatment (HT) process helps in removal of residual
stress, improving the machinability of the forged product and
enhancing the structural properties of the forged component.
During the process the metal is heated above critical
temperature and allowed to cool gradually. Holding the metal
at a temperature for a period of time and gradually cooling
the metal at a specific rate to obtain a desired microstructure.
During the process the metal is heated below the lower
critical temperature and allowed to cool gradually.
Depending upon the type of the product and application of
the product, different heat treatment processes are carried out. Electricity, Gas, Oil, HSD are the
main forms of energy used for heating the metal. Type of heat treatment processes are presented
next.

Annealing

In this process the forged product is heated above critical temperature17 and allowing to cool in
the furnace itself after switching off the furnace is called annealing. This process increases the
ductility and toughness but reduces the hardness in the forged component.

Normalizing

In this process the forged product is heated above critical temperature, soaking it at that
temperature and cooling it in air is called normalizing. This process increases the strength and
harden ss. This process is performed on forged components that are to be machined as
normalizing improves the machinability of components.

17 Steel undergoes a phase change - recrystallizing as austenite at the critical temperature ( ~ 700 ⁰C)

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Quenching
Quenching is a process of rapidly cooling steel forgings from the austenitizing temperature
(Heating of the forged alloy above critical temperature). In ferrous alloys this will often produce
a harder metal by transforming the austenite to martensite. When the entire metal is heated and
maintained at austenitic temperature and quenched, this process will cause the hardening of the
entire forged part.

Case Hardening

Some components require higher hardness at surfaces than at cores. For such forged
components surface hardening is done which hardens only the surface/ case. This is done to
improve the wear and tear resistance of the component.

Tempering

Tempering is performed by elevating the steel to a set point below its lower critical temperature,
typically following a hardening operation. Once this temperature is reached, it is held there for a
specified amount of time. Material is gradually cooled, tempering also improves
the machinability and formability of a hardened steel, and can reduce the risk of the steel cracking
or failing due to internal stresses.

Finishing and Machining

Preparation of the final product might require additional machining operations to produce the final
product with precise dimensions. Forged components are finally machined to deliver the final
product in the specified shape, dimensions, and tolerances. Several machining operations such
as drilling, shaping, truing, coining, boring, threading, grinding, stamping etc. are carried out with
help of the special machines during the finishing process.

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Technologies used in forging

Different equipment and machines and processes are adopted to process the different products,
depending upon the type of the metal, size, mass, and complexity of the final forged product.
Details of the different technologies and their applications in different processes are being
illustrated in the section.

Metal heating (Billet heating)

Induction billet heater

Induction billet heaters are used by MSME forging units across different forging clusters for metal
heating application. Induction heating furnaces are operated in continuous mode, with cycle time
of heating the single billet generally varies in range of a few seconds to less than a minute. Cycle
time depends upon the size of the billet and cycle time of the forging operation. Induction furnaces
are available in wide capacities ranging from few kg/hour to few tonnes /hour. Induction furnace
is made up of nonconductive refractory lining which is used to convey the billet to be heated,
refractory is generally surrounded by multiple coils.
High frequency alternating current is passed through the coils which creates a rapidly reversing
magnetic field, this magnetic
field penetrates the metal
changed in crucible.
Alternating high flux
magnetic field induces eddy
currents (in charged metal),
by process of
electromagnetic induction.
The eddy currents, flowing
through the electrical
resistance of the bulk metal
produces the heating effect.
Ferromagnetic materials like
iron, the material is also heated by magnetic hysteresis, the reversal of the molecular magnetic
dipoles in the metal. These eddy currents and magnetic hysteresis led to vigorous heating, which
heats the billet to recrystallization temperature in very less time.
Insulated gate bipolar transistor (IGBT) based induction billet heating is widely used across the
forging clusters.
During audit across multiple units in different forging clusters- the capacity of the induction billet
heater was observed in the range of 50 kg / hour – 500 kg per batch, with a connected load of
75–1000 kW. The specific energy consumption (SEC) of induction furnaces varies in the range of
370 kWh–450 kWh per tonne.
IGBT based system are ideal for the high voltage high current operations. IGBT based system is
capable of operating at higher frequency (up to 2-3 kHz) range as compared with SCR based
system (up to few hundred Hz). These added benefits of IGBT help in better and precise control
of the heating operations in IGBT based Induction heating furnaces.
SEC of the Induction billet heart observed during the energy audits under BEE energy and
resource mapping study was in rang of 375- 580 kWh/ tonne for hot forging operations.

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Table 21: Comparison of metal heating furnace technologies

Sr. Technology Energy
Applications / Advantages
No. / Process consumption
• Precise metal temperature can be controlled
• Advanced skill sets are required to operate the
Induction 370- 450 kWh
1. furnace
billet heating per tonne
• High installation cost, higher productivity & high-
quality forging

Oil fired metal heating furnaces

Oil fired metal heating (box type) furnaces is a

conventional form of metal heating technology
widely used across forging industries.

Oil is fired in the box type furnace with help of the

burners, heat generated from the combustion is
used for the heating the billets (metal). These
furnaces typically take few hours during the cold
start time. Once the temperature is attained it can
be used for continuous operation.

Typical energy Sankey for the oil-fired metal

heating furnaces is presented on the right.

Temperature of the furnace is manually controlled

by the skilled operators by adjusting the flue and
air flow rate to the burners. These furnaces have
inherent inefficiencies such as dry flue gas loss,
start up and shut down heat loss (thermal loss to
refractory).

The specific energy consumption (SEC) of

furnaces varies in the range of 100-300 kgoe/tonne.
Oil fired furnaces has highest pentation in the Ludhiana Jalandhar, forging clusters.

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Gas fired metal heating furnaces

Gas fired metal heating (box type) furnaces is

a slightly advanced form of metal heating
technology use the cleaner lower carbon fuel
(Natural Gas) for the metal heating. No soot
is observed during the combustion. Gas fired
furnaces have slightly higher efficiency than oil
fired furnaces as lower quality of excess air is
required for complete combustion of fuel.
Lower excess air help in reducing the dry flue
gas loss. Higher level of automation is
possible with use of the sensors (temperature
and excess air) and automatic control values
(fuel and air) which further improves the
overall efficiency of the furnace.

Gas is fired in the box type furnace with help

of the specially designed gas burners, heat generated from the combustion is used for the heating
the billets (metal). These furnaces typically take few hours during the cold start time. Once the
temperature is attained it can be used for continuous operation.

Temperature of the furnace is generally controlled by manually controlled by the skilled operators
by adjusting the flue and air flow rate to the burners. These furnaces have inherent inefficiencies
such as dry flue gas loss, start up and shut down heat loss (thermal loss to refractory).

The specific energy consumption (SEC) of furnaces varies in the range of 100-130 kgoe/tonne.
Gas (Natural gas) fired furnaces has highest pentation in the Delhi- NCR forging cluster, and
very few units are using the LPG based furnaces in Jalandhar forging cluster.

Table 22: Comparison of metal heating furnace technologies

Sr. Technology Energy
Applications / Advantages
No. / Process consumption18
• Better temperature control
• Lower scale loss
Induction 370-580
1. • Higher production, very less start up time
billet heater kWh/tonne
• Lower SEC and fuel saving, reduction in SOx,
NOx
Oil fired • Lower efficiency, Higher scale loss
100-300
2. heating • Used for heating larger billets
kgoe/tonne
furnaces • Oil is easily available across different clusters
• Better temperature control
• Used for heating larger billets (multiple size)
Gas fired
• Lower SEC and fuel saving, reduction in SOx, 100-130
3. heating
NOx kgoe/tonne
furnaces
• However, few clusters have access to NG
Pipeline

18 SEC also depends upon the metal, technology and SOPs adopted by the specific unit and level of automation and
allied processes.

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Finishing and Machining

Forged parts generally have the excess metal at the edges in from of flash,
which need to be removed in order to produce the final product with required
dimension and tolerances. Coining is also required in few of the forged parts.
Serval machining and finishing operations are carried out depending upon the
type and application of the final product.

Trimming and coning : Forged products removed from the die after forging has flash and extra
metal surrounding the forged component. Flash (excess metal) has to be removed either manually
or with trimming dies.

Fewer of the medium and large units have adopted the state of art screw presses with VFD for
coining and trimming operations.

Shot Blasting: Shot Blasting is a surface treatment process, using high velocity steel abrasive.
Shot blasting is used to obtain excellent
cleaning and surface preparation for
secondary finishing operations, this
process removes the scale, particles
embedded on the surface of the forged
product.

Centrifugal wheel-based shot blasting is the

most common blast cleaning technique
used in the forging industries.

Rotary turbine delivers abrasive shots by

centrifugal force in a specific and controlled
direction, speed, and quantity to help the
cleaning operations. Turbine in the
machine performs the operation similar to that of a fan or centrifugal pump. Shot blasting
machines may use one or a multitude of turbines positioned in such a way that the abrasive blast
pattern covers the entire surface of the material to be cleaned, material after shot blast provides
the cleaner surface and higher surf finish. Operating time
of the shot blast depends upon the type of the forging ( clos
die / open die) and surface finish required, precision and
high surface finish forged (flash-less forging, forging
formed from presses) require the lesser shot blast
operations.

Machining Centres: Serval operations are carried out on

the forged parts to get the final product, main machining
operations are :Turning, Boring, Drilling , Threading,
Grinding etc. These operations are carried out on
Automated Lathe machines or Special purpose machines.
Modern 3/4/5 axis machine centre provide the user with
multiple programmable options to carry out the multiple operations with ease using the computer
based programmable control.

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State of art CNC and VMC provides higher productivity as compared with conventional machines,
these machines don’t have multi-directional tool movement. Multi axis CNC machines (5 axis, 6
Axis) provide the flexibility for the tools (multiple tools) movement, which reduces the production
time (clamping and de-clamping the workpiece again and again) and improves the product quality

Grinders: Machined forged products are finished with

the help of the grinders and finishing rollers to give the
product desired surface finish and help in achieving the
required tolerances.
Generally, two types of the grinders are used in the
forging units – hand grinder and belt grinders. Different
types of the grinding wheels are used to obtain the
desired degree of surface finish to the final product.

Heat treatment
Heat treatment is an important step after forging. This helps in improving the mechanical
properties of ferrous forging. During multiple operations - forging and metal forming stresses are
in-creeped in the metallic grain structures. Heat treatment processes help the removing these
creeped form the forged products, to make them strong enough or elastic enough for their final
application. Use of the gradual heating and cooling of the forged components based on the
metallurgy help in relieving the stress.
Different type of heat treatment furnaces are being used across different forging units in different
clusters. The main types of HT furnace are presented next.

Oil fired heat treatment furnaces

Oil fired heat treatment furnace is most conventional from the furnaces used to heating of the
forged products. These furnaces used different forms of the oils (LDO, LSHS, FO, Diesel) to
generate the thermal heat requirement for the operations. These furnaces can be classified as
two types based on the operations – box type or continuous (moving belt).

Fuel is fired in the furnace with the help of the specially designed oil burners which atomise the
fuel and mixes it with adequate quality of air for the complete combustion. Heat generated by the
combustion is used to heat the furnace and metal. Hot flue gas after the waste heat recovery is
sent to the atmosphere.
Optimized control of the air fuel ratio; use of the modern EE burners; proper thermal insulation;
WHR (limited the sulphur content in the fuel) from flue gas - helps in optimization of the SEC of
the oil furnace.

Gas fired heat treatment furnaces

Gas fired heat treatment furnace is modern from the furnaces used to heating of the forged
products, with lower emissions (Cleaner fuel). These furnaces used different forms of the fuel
(NG, PNG, LPG etc.) to generate the thermal heat requirement for the operations. These furnaces
can be classified as two types based on the operations – box type or continuous (moving belt).

Gas is fired in the furnace with the help of the specially designed EE gas burners which help in
blending the gas and air in the designed proportion for the complete and efficient combustion.

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Heat generated by the combustion is used to heat the furnace and metal. Hot flue gas after the
waste heat recovery is sent to the atmosphere.
Optimized control of the air to gas ratio; use of the modern EE gas burners; proper surface thermal
insulation; WHR from flue gas - helps in optimization of the SEC of the gas furnace.
Generally used the clusters where the Gas pipe is available, fewer units in the Norther region and
Southern regions also use the LPG cylinders as gas source to operate the Gas fired HT furnaces.

Electrically heated heat treatment furnaces

Electrically operated HT furnaces are more efficient than

the conventional heat treatment furnaces operated with
oil or gas. Mostly gas / oil fired furnaces have higher SEC
and lower efficiency due to inherent losses (dry flue gas
loss, unburnt losses etc.). Operation of these furnaces
require the complex air / fuel ratio control which is often
not easily maintained without automation. They also
require specially designed burners for precise
temperature control in the furnace. Precise control of
temperature across different zones or section of the
furnace is also not easy to achieve with fuel fired burners.

Electrically operated heat treatment furnaces use multiple

resistive heating coils spread across different furnace
sections or zones, and hot air circulation fans for uniform
heating. These furnaces provide precise temperature control, by use of PID control or advanced
PLC controls for switching the electrical heating coils. Since electrical resistive heating inherently
offers less variables and therefore less avenues for losses as compared to fuel firing, they are
usually able to achieve better SEC than conventional fuel fired furnaces
Sealed Quench Furnace are most advanced form of the integrated heat treatment system which
perform multiple operations like - heating, quenching, tempering, cooling, other heat treatment
operations etc. SQF uses stationary table, hydraulic lifts, and charge transfer systems to move
the forging components across the different sections. Operations are seamlessly performed with
advanced automation and precise control with use of modern sensors and PLC systems, thus
helping in energy conservation. Sealed quench furnace for various applications like case
hardening and carburizing, carbonitriding, normalizing, annealing, ferritic nitrocarburizing,
annealing and stress relieving.
Table 23: Comparison of metal heating furnace technologies
Sr. Technology /
Applications / Advantages 19
No. Process
• Large number of LSP are providing the solutions
• Can be used where gas pipeline is not available
1 Oil fired
• Use of the advanced EE burners and Automation can help in
reduction of the losses
• Better air to fuel control can be achieved, regulation of the gas
2 Gas fired
flow / air flow can be automated

19Energy consumption of the oil / gas fired furnaces varies in range of 50-120 kgoe/ tonne, this varies with the type of
the processes involved during the HT operations. SEC of the fully automated electrical furnace can vary in range of
30-80 kgoe/tonne and if also function of the operations (HT) and level of automation used in furnace.

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Sr. Technology /
Applications / Advantages 19
No. Process
• Lower losses as compared with oil fired furnaces thus resulting in
lower emissions
Electrically • Reduction in cold start time of furnace
operated • Lower losses as compared with oil / gas fired furnaces thus
3. Heat resulting in lower emissions
treatment • Use of multiple coils across the furnace (walls), help in controlling
furnaces the heating more precisely- resulting in higher quality

Metal forming technologies 20

Metal heated in the furnace is then deformed to the desired shape
by the application of the compressive forces. Different metal
forming technologies are presented in below section:

Belts drop type hammer

These hammers are used for forging of hot billets into various
shapes for shafts, flanges, gear blanks, pipe fittings, rollers, hubs,
and so on. The capacity of the forging hammers typically ranges
between 0.5 to 3 tonnes.

Electric motors of 30 to 100 hp are used for driving the hammers.

Forging capacity, depending on the number of hammers and their
capacities, varies from 300 to 3,500 TPA.

The hammer strikes and deforms the workpiece. Belt drop type
hammers are used for forging of hot billets into various shapes.
The capacity of the forging hammers typically is in range of 0.5 to 3 tonnes. The board drop
hammer is a drop forging machine tool that relies on gravity.

Once the ram is raised to the height needed, the rollers can be pulled apart and the apparatus
will be released, sending the forging hammer on its way. Electric motors in the range of 30 to 100
hp are used for driving the hammers. Forging capacity, depending on the number of hammers
and their capacities, varies from 300 TPA to 3,500 TPA. The hammer’s base is equipped with a
rubber padding to act as noise and vibration absorber.

The capacity of the open die hammers is in the range of 0.5 tonnes to 5 tonnes. Unlike in close
die hammers, no top and bottom dies are used. Instead, only the hammer and the base on which
the job rests (called anvil) are used. Basic jobs forged on these hammers are certain types of
shafts and flats.

20 [Link] Accessed on 16-Jul-2020

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Screw press
The capacity of screw presses is in the range of 100 to
1,500 tonnes. Electric motors used for driving these
presses range between 30 to 150 HP. Screw presses with
electrical motors of 5 to 30 HP are used for trimming and
coining operations.

These presses are operated with pneumatic clutch and

brake and screw is used for adjusting the height of stroke
length. It is used mostly with shaft end heating jobs.

Screw presses are predominantly used for the close die

forging applications. Modern flash less forging also use
the modern screw presses.

Pneumatic hammers and Hydraulic hammers

Pneumatic hammers are conventional forms of the
forming machines primarily used for open die forging
operations. There are two type of the pneumatic press
one type is with inbuilt compressor and other presses
have central air compressors. Compressed air is used to
move the piston which moves the ram – used for metal
forming operations.

Motors used for the compressors for these presses vary Pneumatic Hammer with
in range of 50-150 kW. These hammers are used to inbuilt compressor
forge the large, forged products. Weight of the forged
products varies from few hundred kilo grams to few
tonnes.

Pneumatic hammers are predominantly used in Hydraulic Hammer

Ludhiana and Bangalore forging clusters to forge the
products for oil & gas industry Maintaining the air
pressure and controlling the air leakages are the main
challenges with these hammers.

Hydraulic hammers are also used by limited forging

units to carry out the open die forging operations.
Hydraulic pressure is used to move the ram, this ram
is used to forge the metal to desired shape. These
hammers are used to forge the large, forged products.
Weight of the forged products varies from few hundred kilo grams to few tonnes.

Hydraulic hammers are predominantly used across the Delhi-NCR forging cluster and few units
in Bangalore forging cluster.

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Pneumatic clustch operated electrical press

Modern electric presses with pneumatic clutches are
widely used in the forging industry to produce the higher
quality and higher precision forging products. Presses
are operated with electrical motors and during the stroke
cycle the pneumatic clutch is used to engage the rotating
flywheel to the ram, which moves the ram down to
deform the metal in the designed shape.

Presses are used in the forging industry for the close die
operations. Capacity of the presses varies from 1000
tonnes to 4000 tonnes across MSMES forging units.
Presses are driven with the help of electrical motors and
capacity of motors varies from 50 HP to 200 HP.
Compressed air for the pneumatic clutch is served by the help of the auxiliary air compressor
which delivers the air around 5-7 bar as per the design of the clutch. Modern presses are equipped
with VFD, which further help in the reduction of the energy consumption.

Table 24: Comparison of metal forming technologies

Technology /
Sr. No. Applications / Advantages
Process
• Mainly used in close die operations
1. Drop Hammer • Higher surface fishing of the forged product
• Lower flash generation
Pneumatic
clutch • Mainly used in close die operations
2. operated • Higher surface fishing of the forged product
electric • Lower flash generation, higher quality forging
presses
• Mainly used in close die operations
3. Screw Press • Higher surface fishing of the forged product
• Used with dies for flash-less forging operations
Pneumatic • Flexibility of the operation and used for open die forging
4.
hammer • Higher noise and vibration
• Higher productivity, lower energy consumption
Hydraulic • Lower noise and vibration
5.
Hammer • Mainly used for open die forging and limited application in
close die forging

Utilities
Utilities like compressed air, cooling water, oil, etc. are being used to support the forging
operations. Compressed air is mainly used in the core preparation, knock out and in machining
section. Cooling water is used to cool the machines, induction coils and machines etc.
Several utilities are required to support the forging operation in the industry. Most commonly used
utility along with applications are presented in below:

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Cooling Tower

Cooling tower helps in rejecting the heat from the induction furnace and
maintaining the required temperature of the induction coils and panel cooling
of induction heater. Cooling towers are also used along with centralized cooling
units. Cooling water from cooling tower helps in removal of the heat from
Induction billet heaters, air compressors, and other utilities.
Most of the units use the FRP based cooling towers for the cooling applications.
Fewer units ( <5%) also use the fan less FRP based cooling tower to the processing cooling
requirement.

Air Compressor

Compressed air in the forging operations - mainly in pneumatic clutches for

presses grinders, shot blast and cleaning.

Reciprocating screw compressors are generally used by micro and small forging
units to meet the compressed air requirement of the unit. Screw compressors
are mostly used by the medium scale forging performing open die operations.
A few units in the Pune have also adopted the modern state of art Permanent magnet screw
compressor to meet the process air requirement. SEC for these compressors are ~ 0.13-0.14
kW/cfm as compared to 0.25-0. kW/cfm for reciprocating compressors.

Motors and Pump Sets

Motors are used for power – hammers presses, grinding, shot blast, CNC, drilling, turning and
other machines for the machining and finishing operation. IE2 is predominantly used across the
forging clusters, progressive clusters like Ludhiana Bangalore also use the modern EE IE3
motors. IE4 motors have 5-10% higher efficiency as compared with conventional IE2 motors.

Pump sets

Pump sets are used to pump the cooling water and other liquid utilizes in the plant.
Induction billet heaters require cooling of coils in IBH and cooling electronic panel.
Pumps running on DM water serve this purpose.
Pumps are used along with induction heating furnaces to maintain the panels and
coil cooling applications. Forging in general have end suction mono-block pumps
serving the purpose.

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Most of the pump sets used in the forging units are of smaller capacities, Pump sets are generally
sourced by forging from local manufacturer. Use of the correct duty pump sets with IE3 motor and
star rated / EE pump will help in the conservation of energy.

B. Energy Consumption and Benchmarks

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B. Energy Efficiency Technology

compendium
Energy efficient technologies are usually sector specific but also governed by type of the products
manufactured in the cluster, fuel availability along with the awareness, technology availability and
level of sophistication etc.
Different clusters have different requirements depending upon the present level of technologies
being used and progressiveness of the specific cluster. We have evaluated and subsequently
prioritized EE technologies for different forging clusters based on various parameters such as
investment cost, energy savings potential, payback period, replication potential etc

Scalability/ Technical feasibility Financial feasibility-

Average investment
replicability in other (Energy savings IRR, NPV, payback
cost
similar industries potential) period

Project team has carried out the in-depth review of the EE technologies based on primary data
collection, energy audits carried out in the cluster and in close consultation with IAs and
technology providers. EE technologies relevant to the forging clusters are explained in below
section:
Team has segregated the EE technologies in two categories based on their applicability in the
short-term (next 5 years) and long-term (next 10 years). For all identified EETs replication potential
is estimated and segregated into following four categories:
• Low Potential: Less than 10% MSMEs in cluster have replication potential
• Medium Potential: 10%-30% MSMEs in cluster have replication potential
• High Potential: 30%-60% MSMEs in cluster have replication potential
• Saturation: More than 60% MSMEs in the cluster have implemented EET

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Process specific Energy conservation measures

Table 25: Process specific replication potential of ECM across forging clusters

Replication Potential in long-

Energy Replication Potential in short-term
S. term
Technologies savings (till 2025)
No. (till 2030)
potential
Micro Small Medium Micro Small Medium
New generation IBH with IGBT control along with
1. 10-30% High Medium Saturation Saturation Saturation Saturation
IoT based alerts and automation
Use of modern pneumatic clutch all electric presses
2. 5% Low Medium Medium High High Saturation
with VFD for forging
3. Installation of automatic robotic forging lines 5% Medium High Low Saturation Saturation

4. Fuel switch in Oil- NG 5-10% Low High High Saturation Saturation Saturation

5. Relining of furnaces / Insulation 5-10% High High Saturation Saturation Saturation Saturation
Electrically operated Heat treatment / Annealing /
6. 20-30% Low High Saturation High Saturation Saturation
Normalization furnaces
7. Flash less forging 5-10% Low High Low High Saturation
Installation of robotic automation in forging lines
8. 3-5% Low Low Low High Saturation
(Hammers and Presses)
9. Automatic continuous lines 10-20% Low Low Low
Use of Hydraulic Hammers instead of Pneumatic
10. 30-40% Low High Saturation Saturation
Hammers
Multi axis Machining centre (5 / 6 Axis with
11. 5-10% Low Medium High Medium Saturation Saturation
automatic tool changer)
12. IoT based EMS 2-5% Low Medium Medium Medium Saturation Saturation

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Utility specific Energy conservation measures

Table 26: Utility specific replication potential of ECM across forging clusters

Energy Replication Potential in short-term Replication Potential in long-term

S. (till 2025) (till 2030)
Technologies savings
No
potential
Micro Small Medium Micro Small Medium

1 IE3/IE4 motors 5-15% Low Low Medium High High Saturation

EE FRP Cooling towers with temperature
2 control and VFD / Fan less Natural draft FRP 5-10% Low Medium Medium High High Saturation
based cooling tower
Appropriate size of air compressor / Arresting
3 10-30% Medium Medium Low High High Saturation
air leakage and pressure optimization
PM Screw Compressor with waste heat
4 20-30% Medium High High Saturation Saturation
recovery
5 Heat Pump 10-30% Low High
Use of EE Hydraulic power pack (with Servo
6 20-40% Low Low High Medium Saturation Saturation
drive) for Clamping application
EE retrofit of low friction metallic pipe for
7 10-30% Low Medium Saturation High Saturation Saturation
compressed air system
8 Energy Efficient Transformers 20-50% High Medium Saturation Saturation Saturation Saturation

9 EE Air conditioner / Chillers 10-25% Low Saturation Saturation Saturation Saturation Saturation

10 Automatic Power factor Controller 5-10% Medium Medium Saturation Saturation Saturation Saturation

11 Energy Efficient Blower 20-30% Medium Low High

12 Energy Efficient Pumps 20-30% Medium Saturation Saturation High Saturation Saturation

13 LED lights 10-50% Saturation Saturation Saturation Saturation Saturation Saturation

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EE technologies for metal reheating, heat treatment and

forging process
Forging industry is energy intensive and energy cost accounts for about 20–30% of total
production cost. Metal reheating accounts for 30-70% while heat treatment and forging process
account for 20-50% of the total energy consumption in the forging industries. Specific Energy
Consumption (SEC) for the induction-based heating furnace range between 250-700 kWh per
tonne of liquid metal, Furnaces have a huge potential for energy conservation, around 20-35% of
the energy can be saved - by selecting right type and size of equipment, automation of processes,
and by adopting best operational practices.

Conversion of conventional furnaces to IBH

IBH is the most efficient technology for the metal heating, electromagnetic energy is used for
heating the metal to desired temperature. IBH is considered as the cleanest technology for metal
heating free from the emissions, use of the IBH also helps in the reduction of the metal in form of
scale. Precise temperature can be maintained using the billet heater with IGBT control system.

FO fired furnace Induction Billet Heater

Figure 20: Installing IBH in place of Oil-fired furnace

Features
• Lower fuel consumption
• Precision temperature control
• Reduction in scale loss, scale loss in range of 1-2% only, less as compared with oil
and gas fired furnaces
• Lower emissions
• Average Payback Period: ~ 18-30 months
Case Study (Oil fired Furnace to IBH)21

EE measure has been carried out in one of the MSME unit with average production of 930
tonne per year for metal heating furnace, under BEE-WB-GEF-SIDBI programme. FO -box
fired furnace inefficient furnace (operating efficiency around 10%) is replaced with IBH
furnace (capacity 500 kg/hour, 200 kW rated IBH) for metal heating, this intervention in the
unit has led to saving of 72% of the energy consumption of the furnace with simple payback
period of 19 months.

21 [Link] Accessed on 13th August 2020

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Fuel switch in furnace FO to NG

Use of the natural gas is better than the use of the furnace oil for the furnaces. Natural gas is
cleaner fuel compared with Oil. Gas fired burners are having higher efficiency as compared with
oil fired burner due to better air to fuel mix, also lower quantity of excess air is required for gas
fired system vis-à-vis oil fired system – thus leading to lower flue gas loss. Emissions (SOx, NOx)
from the NG are lower and can be controlled better.

FO Fired Furnace NG Fired Furnace

Figure 21: Low friction compressed air piping and fittings

Features
• Higher efficiency due to lower flue gas loss
• Higher combustion efficiency
• Lower emissions
• Cleaner workspace
• Average Payback Period: ~ 18-24 months

Case Study22

EE measure has been carried out in one of the MSME unit with average production of 1,000
tonne per year for three heat treatment furnaces, under BEE-WB-GEF-SIDBI programme.
This intervention in the unit has led to saving of 12% of the energy consumption of the
furnace with simple payback period of 21 months.

22 [Link] Accessed on 13th August 2020

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Automation of fuel feeding in furnaces

Automation for the fuel feeding and combustion air control is widely used to control the appropriate
combustion in the furnaces. Excess air control is monitored in the flue gas and fee forward control
is being used to control the combustion of the fuel in the furnaces. Precise maintenance of the
controlling is not possible with use of the automation via PLC with looped with data signals of the
sensors helps in improving the overall efficiency of the furnace. Further resulting in lowering the
emissions (SOx, NOx) from furnace.

Inefficient Forging Furnace Energy efficient Forging Furnace with

automated control systems
Figure 22 Automated control systems

Features
• Higher efficiency due to lower flue gas loss
• Higher combustion efficiency – lower dry flue gas loss
• Lower emission
• Average payback period: ~18-24 months

Case Study23

EE measure has been carried out in one of the MSME unit with average production of 1,248
tonne per year for FO fired heat treatment furnaces, under BEE-WB-GEF-SIDBI programme.
This intervention in the unit has led to saving of 29% of the energy consumption of the furnace
with simple payback period of less than 6 months.

23 [Link] Accessed on 13th August 2020

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Recuperative Burners
Heat treatment process involves re-heating of metal in the range of 500-800 degree centigrade.
Most of the units use FO/Gas fired furnaces for heat treatment. Temperature of exhaust flue gas
from the heat furnace varies in range of 150-400 °C. Higher the exhaust flue gas temperature
higher will be dry flue gas loss from the furnace.
Recuperative burners are equipped with heat exchanger to preheat the incoming combustion air
with the exhaust gases from combustion (Figure 23)24. These systems can lead to energy savings
up to 30% and lower fuel consumption and emissions. The burners can be retrofitted to existing
heating systems. The recuperative burners are also economical due to their simpler construction
among the non-conventional burner systems.

Figure 23 Operation of Recuperative Burners

Features
• Lower fuel consumption
• Lower emissions
• Simple construction and control
• Reduction on flue gas exit temperature
• Recovery of the waste heat and increased operating efficiency of the furnace
• Every 22°C reduction in flue gas exit temperature helps in improving efficiency by
1%
• Average payback period: 6-12 months
Case Study (Retrofitting recuperative burner system to diesel burners) 25
EE measure has been carried out in one of the forging units with 450 kW burner capacity
and annual consumption of 56,160 kg of diesel. The investment cost of the recuperative
burner system is estimated to be INR 6.33 lakhs. This intervention in the unit has led to
savings of 5% of the annual energy consumption with simple payback of 5.9 years and
14.8% IRR.

24 Jouhara, H. et al. (2018). Waste Heat Recovery Technologies and Applications. Thermal Science and Engineering
Progress. 6. 10.1016/[Link].2018.04.017.
25 [Link]

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PLC based automation for Oil/Gas to air ratio for Blower

For the complete combustion of the fuel, adequate supply of air is required. In a typical furnace,
the excess air and CO in flue gas are not monitored. Lower air to fuel ratio leads to incomplete
combustion (CO loss) thus leading to energy losses. Conversely, higher quantity of combustion
air will result in higher fraction of dry flue gas losses. The PLC based automation system for blower
monitors the composition of flue gases and controls the air flow required to enhance complete
combustion products and lower the emissions. The system can also control the temperature of
the metal.

Figure 24 PLC automation system for Fuel to Air Ratio Control

Features
• Higher combustion efficiency
• Lower Gas/Oil consumption
• Lower unburnt in the fuel (lower CO level in flue gas)
• Better temperature control of the metal
• Average payback period: ~ 6-12 months

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Replacement of pneumatic hammers with Hydraulic hammers

Pneumatic hammers are used to forge the large forge products in range of 100-1000 kg/piece
(Products – flanges, shafts etc.). Pneumatic / Steam hammers had been used as the conventional
technology by most of the forging units.

Higher capacity compressors along with larger receiver capacity are required to meet the forging
operation, thus making it most energy intensive process.

Hydraulic hammer with fully hydraulic die forging hammer is high-end and new innovative EE
technology which results in saving of 30-40% of energy consumption. Typical type of hammers
commonly used to forge the products are – close die hammer (high precision products), counter
blow hammers (flanges, shafts) etc.

Figure 25 Hydraulic hammers

Features
• Higher precision products, lower operation time
• Possibility of automation
• Higher efficiency, lower energy consumption
• Lower noise and vibration
• Average Payback Period: ~ 24-36 months

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Application of veneering module in furnace

Heating and heat treatment furnaces used in the forging application are used to heat the metal to
desired temperature. During the heating process the walls of the furnace are also absorb the heat.
Hot surface of furnace causes the loss in form of radiation and convection (Furnace Walls) to
atmosphere leading to the loss of the energy. Other major loss in furnaces is due of heat storage
in the walls, during the start-up and shut down the thermal energy is stored in the furnaces wall,
leading to loss of the energy. Veneering is a technology where in the thermal barrier is created
between the walls of the furnace and inner combustion chamber, this thermal barrier helps in
reduction of the temperature of the furnace walls, which helps in reduction of the thermal losses
and improving the overall efficiency of the furnace. Further resulting in lower fuel consumption,
lowering the emissions (SOx, NOx) from furnace. (Figure 26)

Before Veneering After Veneering

Figure 26: Application of veneering module in LPG Fired Normalizing Furnace

Features
• Lower fuel consumption
• Precision temperature control
• Reduction in scale loss, scale loss in range of 1-2% only, less as compared with oil
and gas fired furnaces
• Lower emissions
• Average Payback Period: ~ 18-30 months
Case Study26

EE measure has been carried out in one of the MSME unit with average production of 1,500
tonne per year for 600 kg/hour LPG fired normalizing furnaces with operational efficiency of
around 10%, under BEE-WB-GEF-SIDBI programme. This intervention in the unit has led
to saving of Rupees 11 lakhs/ year with simple payback period of less than 6 months.

26 [Link] Accessed on 17th August 2020

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Application of appropriate ceramic insulation on hot surface

Heating and heat treatment furnaces used in the forging application are used to heat the metal to
desired temperature. During the heating process the walls of the furnace are also absorb the heat.
Hot surface of furnace causes the loss in form of radiation and convection (Furnace Walls) to
atmosphere leading to the loss of the energy. Use of the appropriate insulation helps in isolation
of the hot furnace environment form the external atmosphere. This thermal helps in reduction of
the temperature of the furnace walls, which helps in reduction of the thermal losses and improving
the overall efficiency of the furnace. Further resulting in lower fuel consumption, lowering the
emissions (SOx, NOx) from furnace.

Before After
Figure 27: Application of ceramic fibre insulation on hot surface

Features
• Reduction in cold start time of furnace
• Lower temperature in workspace leading to increased comfort to work near the
furnace, helps in reduction of fatigue in work force- leading to higher productivity
• Lower emissions
• Average Payback Period: ~ 6 months

Case Study27

EE measure has been carried out in one of the MSME unit with average production of 3,600
tonne per year for 200 kg/hour NG fired forging, under BEE-WB-GEF-SIDBI programme.
This intervention in the unit has led to saving of Rupees 4.8 lakhs/ year with simple payback
period of less than 6 months.

Forging Presses (Pneumatic clutch electrical presses)

Electrical presses with pneumatic clutches are available for the forging industry to produce the
higher precision forged products; presses are used to forge the products ranging from few grams
to few kilograms. Forged products from these presses are having superior quality; presses also
help in reducing cycle time. Use of the VFD on the motor help in optimization of energy
consumption.

Features
• Higher precision products, lower operation time
• Possibility of automation
• Lower machining required
• Average Payback Period: ~ 18-30 months

27 [Link] Accessed on 18th August 2020

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Relining of the heat treatment furnace

During field study temperature of the furnace surface was in range of 40-139°C. Higher surface
temperature leads to higher heat losses from the surface. Appropriate relining of the furnace
internal surfaces resulted in saving of about 5-10% in energy consumption.

Thermal loss through surface Surface temperature profile after thermo-

ceramic coating
Figure 28: Relining of heat treatment furnace
Case Study

Features
• Lower heat loss from surface, fuel saving, better working environment in the vicinity
of the furnace
• Lower emissions
• Average Payback Period: < 7 months

EE measure has been carried out in one of the MSME unit with average fuel savings of 7,000
kg of fuel and monetary savings of Rs. 4.3 lakh. The equivalent GHG reduction was about
20.5 tCO2/year.

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VFD for Press motors and Screw press

Motors of the presses operate continuously
during the forging operations. During the
reverse cycle, motor speed can be controlled
to conserve the energy. Also, some of the
forging operations have a time lag between
cycles. During that time VFD can be used to
control the motor loading for energy saving.
Using same press for multiple forging
operations, if some forging products can be
formed at lower rpm, then frequency controlling
will help in optimization of energy.
Features
• Energy savings in press during
unloading cycle
• Lower emissions
• Average Payback Period: Varies
upon loading and unloading
pattern

Figure 29 VFD for Press Motors and Screw Press

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Electrical Heat treatment / Annealing / Normalization furnaces

During the heating process the walls of the furnace are also absorb the heat. Hot surface of
furnace causes the loss in form of radiation and convection (Furnace Walls) to atmosphere leading
to the loss of the energy. Use of the appropriate insulation helps in isolation of the hot furnace
environment form the external atmosphere. This thermal helps in reduction of the temperature of
the furnace walls, which helps in reduction of the thermal losses and improving the overall
efficiency of the furnace.

Figure 30 Electrical furnace for heat treatment

Features
• Reduction in cold start time of furnace
• Lower losses as compared with oil / gas fired furnaces, resulting in lower
emissions
• Use of multiple coils across the furnace (walls), help in controlling the heating
more precisely- resulting in higher quality
• Average payback period: ~6-18 months
Multi – Axis CNC machine
Most of the small and medium forging
units use the CNC, VMC machines, and
micro forging still use the conventional
lathe, drilling etc. machines for the
machining operations. CNC and VMC
provides higher productivity as compared
with conventional machines, these
machines don’t have multi-directional
tool movement. Multi axis CNC machines
(5 axes, 6 axes) provide the flexibility for
the tools (multiple tools) movement,
which reduces the production time
(clamping and decamping the workpiece Figure 31 Multi Axes CNC Machine
again and again) and improves the product quality (Figure 31)28.

Features
• Improves the productivity and product quality
• Higher efficiency – use of IE4 and higher motors
• Average payback period: ~18-36 months

28 Makino, Vertical 5‑Axis, [Link]

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Energy monitoring system - IoT Based Platform29

Real time energy data (fuel used in heating
furnaces, electricity consumed in Inducting billet
heating furnaces, Compressor, pump sets) in the
MSME forging units is not monitored. With use of IoT
based application enabled with reliable high speed
internet data, smart metering systems makes it
viable to - record, save and transmit energy data of
each equipment and communicate to the energy
manager. Use of the data and trends, with auto
generated alerts and flags will help operations team
to identify opportunities to reduce the energy
consumption on real time basis. With use of the IoT
based EnMS there is potential of energy saving in
range of 2-5%.
Features
• Real time monitoring and preventive actions
• Reduction in failures and breakdowns
• Improve availability and reliability of the process, resulting in lowering SEC of the
unit
• Average payback period: ~18-36 months
Case Study30

IoT based system has been implemented one forging unit in Pune with production capacity
of 300 tonne/ month. IoT based system is used to derive the baseline energy scenario of the
unit over the period of 15 days. Use of the AI along with real time data monitoring has helped
the unit to identify the losses in the compressed air system, pumping system and transformer
losses.

Figure 32: IoT based real time energy management

With advanced analytic and feedback received from IoT platform, unit can save –
• ~300 kWh/day in compressed air system
• ~50 kWh/day in water pumping system
• ~ 25 kWh/day in transformer network

29 [Link]
15BR0_EN.pdf&p_Doc_Ref=998-2095-10-16-15BR0_EN
30 Implemented in one unit in Pune

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EE retrofits (Utilities)
Several low investment EE retrofits are available which helps in reduction of energy consumption
in the equipment and utilities, without impacting the process parameters. Details of the EE retrofits
relevant to the forging industries is presented in this section along with the case studies from the
past interventions under BEE programs.

EE motor for Hammer and Presses

Higher efficiency class motors IE3, IE4 are more efficient than with IE2 and IE1 motors. Lower
efficiency of the motor leads to the higher energy consumption. Re-wound motor is less efficient
than new motors, with every re-winding efficiency of the due to quality of wire, increase in
resistance per phase etc.31.

Features
• Lower energy consumption
• Higher efficiency
• Average payback period: ~ 18-30 months

Use of FRP blades in cooling tower fans

Fibre Reinforced plastic (FRP) blades are now widely used in the forced draft cooling towers, FRP
based blades are lighter as compared with the conventional metallic blades (Figure 33), lighter
weight of the blades helps in the reduction of the energy consumption. These blades have the
better aerodynamic properties as compared with conventional metallic blades. Use of these
blades improves the life of the drive system.

Metallic bladed fan Fibre reinforced

blended plastic fan
Figure 33: FRP blade cooling tower
Features
• Lower energy consumption
• Improved corrosion and erosion resistance
• Low noise level
• Average payback period: ~ 12-18 months

31 [Link] Accessed on 14th August 2020

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Use of appropriate size air compressor

Inadequate size of the compressors leads to the frequent loading and unloading of the
compressors. There is loss of the energy during this activity and during the unloading time there
in minimal energy requirement. Thus, leading to higher energy consumption and higher SEC.

Existing Air Compressor Downsized EE Compressor

Figure 34: Appropriate size compressor

Features
• Reduced unloading time
• Variable speed drives help in the fine adjustment of the operating parameters
• Better SEC of the system
• Average payback period: ~ 18-24 months

Use of Hydraulic power pack

Hydraulic power packs are used on machines for operating hydraulic actuators. Hydraulic
actuators may be used for slide movement, job clamping - decamping etc. The conventional
hydraulic power pack has a continuously operated hydraulic pump which maintains the pressure
required for the operation. On conventional machines, the hydraulic systems provide peak power
for a very short time and the hydraulic system is over-rated for most of the time. When there is no
requirement of actuation (or during hold condition), the conventional hydraulic power pack
operates continuously, even during times like setting of machines for new job, breaks etc. Further
resulting in lower energy consumption, lowering the emissions (SOx, NOx) from furnace. VFD
controls frequency of AC electrical power and, in turn, can control the speed of a synchronous
motor to always maintain the required pressure.
Features
• Reduce the use of the energy during holding time
• Use of VFD along with hydraulic power pack helps in reduction of heat loss and
lowering the load on cooling tower
• Reduction in noise and less wear and tear of machine
• Average payback period: ~ 12-24 months

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Permanent Magnet Screw air compressor with waste heat recovery

Permanent magnet-based screw air compressors are one the premium air compressors available
that provides the lowest SEC. Compressor uses the premium IE5 equivalent motors and waste
heat generated from the compressor can be used to heat the water via heat exchanger. Hot fluid
(water) can be used for process applications. SEC of the compressor varies in range of (12-14
kW/100 cfm)32.
Features
• Lower energy consumption
• Efficiency of motor up to 95-96% can be achieved
• Hot water/ air from WHR can be used for process heating application
• Average payback period: ~ 30-42 months

Use of Heat Pump for waste heat recovery

Heat pumps can be used to recover the lower temperature (50-100°C) waste heat from different
applications. Heat pumps utilize low grade - hot water, exhaust gases, fuel any combination of
these heat sources, to pump heat. Heat pumps can be used to recover 10-35% of waste heat
from the process. Presently only less than 1% of the units use the heat pump technology.

Features
• Recovery of low temperature WHR recovery
• Hot water can be used for heating application of washing, electroplating etc.
• Lower emissions
• Average payback period: ~ 24-48 months

EE motor for water pump set

Higher efficiency class motors IE3, IE4 are more efficient than with IE2 and IE1 motors. Lower
efficiency of the motor leads to the higher energy consumption. Re-wound motor is less efficient
than new motors, with every re-winding efficiency of the due to quality of wire, increase in
resistance per phase etc.33.

Features
• Lower energy consumption
• Higher efficiency
• Adequate flow and head
• Average payback period: ~ 6-15 months

32 7 bar pressure for service air

33 [Link] Accessed on 14th August 2020

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Use of Metallic low friction piping for compressed air system

High surface finish aluminium based compressed air piping system helps in the reduction of the
pressure drop in the piping network; use of the leakage proof fittings helps in lowering the
compressed air leakage from the piping network. Implementing this retrofit will help in reduction
of the discharge pressure (due to lower pressure loss) from the compressor; Lower demand of
the compressed air quantity (due to lower leakages) (Figure 35) helps in reduction of the total
energy consumption of the compressed air system. Reduction of 1 bar generation pressure at
compressor alone results in 6-10% reduction in energy consumption at compressor34.

Figure 35: Low friction compressed air piping and fittings

Features
• Reduced pressure drop
• Reduction in leakages
• Reduced energy consumption in compressed air system
• Average payback period: ~ 12-24 months

Case Study35

EE retrofit has been carried out in one of the MSME unit, under BEE-UNIDO programme –
“Promoting Energy Efficiency and Renewable Energy in selected MSME clusters”. This
intervention in the unit has led to saving of 20% of the energy consumption for the
compressed air system. with simple payback period of 15 months.

34[Link] - Accessed on 13th August 2020

35[Link] Accessed on 13th
August 2020

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Automatic Power Factor Controller (APFC)

The forging units have components running on inductive loads. These loads lead to lagging power
factor of the unit overall. The low power factor is responsible for higher power consumption and
penalty from utility beyond the particular set range. The Automatic Power Factor Controller
(APFC) is a microprocessor based control which maintains the power factor close to unity by
providing appropriate capacitive/leading load at the transformer level.

Features
• Lower energy consumption
• Lower electricity bills
• Reduced losses
• Average payback period: ~ 6-15 months

Energy Efficient Lighting System

Lightings consume 5-10% of the overall energy in the units. Several units are still using the
conventional lighting systems such as incandescent bulbs, CFL, metal halide lamps etc. The new
energy efficient LED lighting system consume one third to a half of the energy to provide
equivalent illumination. Furthermore, automation of these lighting system based on occupants or
time of day in certain locations can lead to additional savings. Alternatives such as light pipe can
also be used to maximize daylight usage for illumination.

Features
• Lower energy consumption
• Longer lifetime
• Reduced O&M cost
• Average payback period: ~ 12-24 months

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Use of appropriate size motors

As the loading on the motor decrease the efficiency of the motors decreases, at loading below
60% the efficiency of the motor fall at faster rate as presented36 in Figure 36. Thus, operating the
motors at lower capacity than rated leads to the inefficient operation leading to higher energy
consumption in the system.

Figure 36: Efficiency v/s loading of motors

Features
• Lower energy consumption
• Higher efficiency
• Average payback period: ~ 6-30 months

Case Study37

EE measure has been carried out in one of the MSME unit with under BEE-UNIDO
programme – “Promoting Energy Efficiency and Renewable Energy in selected MSME
clusters”. Replacing the one 4 kW, two 2 kW and three 1.5 kW motors in place of 7.5 kW, 4
kW and 2 kW motors in shank grinder, stone grinder, and furnace blower, helps in reduction
of the energy consumption. This intervention in the unit has led to reduction in 9 kW of
installed capacity, monthly energy saving of 2,684 kWh. This intervention is having simple
payback period of less than 10 months for this EE retrofit.

36 [Link] Accessed on 14th August 2020

37 [Link] Accessed on 14th August 2020

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State of the Art Technologies in Metal Forging

Flash-less Forging
Forging operation often produce the flash around the forged product that requires additional
material for and additional energy for heating that material. Alternatively, the precision enclosed
impression die forging operation can produce near net or net shape forging. The operation is
independent of flash formation. Thus, the trimming process requirements are eliminated. The
enclosed die also ensures a better grain structure as shown in Figure 39. Flash less forging can
be used for variety of products as shown in Figure 3738 and Figure 3839.

Hot Forging Flashless Forging

Figure 39 Grain Structure Comparison

Figure 37 Flashless
forging sleeve yoke

Figure 38 Flash less forging connecting rod

Features
• Minimal flash generation, higher yield
• Elimination of trimming operations, and cracking capability
• Higher strength due to the optimum grain flow and inherent full density
• Lower energy consumption and lower emission

Case Study for Yield optimization (Sleeve Yoke)38,39

Table 27: Case Study flash -less forging

Parameters Drop Forging Flash less Forging

Input weigh of billet (kg) 1.47 0.945
Forged weight (kg) 1.41 0.938
Final weight of forging (kg) 1.05 0.937
Flash weight (kg) 0.36 0.001
% flash 24.5% 0.1%
% Yield 75.5% 99.9%
Mass of metal saved / 1000 pieces (kg) 525
SEC of billet heater (kWh/tonne) * 400
Energy saving from heating (kWh/ 1000 piece) ** 210

38 Dwivedi, O. P. et. al., (2014), A Case study for near net Shape – Flashless forging for full yoke (Sleeve Yoke omni),
IJMER Vo. 4, Iss. 4, [Link]
39 Forging Industry Association, 6.10 Case Study No.10 Flashless Forged Connecting Rod,

[Link]

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Continuous Forging and HT Lines

IBH Most forging units use single coil to heat multiple size jobs. IBH works most efficiently when
the coil diameter (IBH) is same as the metal piece diameter. Higher coil size leads to loss of the
energy through the air gap leading to Higher SEC. To maintain the clearance and provision of the
metal expansion due to heating, slight tolerance of 1-2 mm is considered over the piece for smooth
operations. In a typical forging line, the work piece temperature post forging operation is still over
500 °C and stored until it is ready for heat treatment. As a result, the work piece loses heat and
needs to be heated again from room temperature to heat treatment temperature. Apart from heat
loss, the material may also develop stresses. Alternatively, in a continuous forging and HT lines
can improve the productivity and reduce the energy consumption of the heat treatment process.

Billet Temperature
Billet cutting Forging & Trimming
Heater
1150-1200 °C

Metal
Machining / Final Temperature
Heat treatment Storage area
inspection 30-40 °C

SEC of unit – 100 to 150 kgoe/tonne

Temperature
1150-1200 °C+
Billet cutting Billet Heater Forging & Trimming

Material movement through conveyors

Feed directly to continuous
Machining / Final Continuous Heat heat treatment machine
inspection treatment

SEC of unit - 80 to 100 kgoe/tonne

Figure 40: Continuous forging lines comparative

Robotic Forging
One of the most advance solution in forging sector is full automation of the forging process through
robots. These robots can handle the heavy products and perform metal reheating, hammering
and heat treatment operations in an islanding mode with remote supervision of humans. State of
the art systems offer end-to-end integrated systems capable of forging products from 3 kg to 1300
kg. These robots have high dexterity and heat resistance which enables hot forging of complex
shapes and high productivity with high amount of safety.
Features
• Lower SEC of the entire process
• Automation of process can be done using the conveyors
• Higher productivity and lower drops outs
• Depends upon the layout and space availability

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Figure 41 Fully automated forging process

Features
• High productivity
• Improved accuracy, better quality, and reduced rejection rates
• Limited human intervention required
• Reduction in forging time enables temperature optimization

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Oxyfuel burners
Conventional burner technologies use air directly in an open
environment. Oxyfuel combustion technology uses pure oxygen
instead of air for combustion of the fuel. The oxyfuel combustion of
hydrocarbon fuels such as natural gas can reduce the flue gases
including NOx emissions by 75-80% and 55% lower fuel
consumption. Oxyfuel combustion can also reach higher
temperatures up to 1500°C40,41,42. Some oxyfuel systems optimize
combustion to achieve flameless operation which promotes uniform
heating and extends useful life of refractory lining. These systems
are compact and rugged and can be retrofitted to existing burner
systems A schematic representation of oxyfuel burners is shown in
Figure 42. The comparison of different burner systems is presented
in Table 28.
Table 28 Comparison of performance parameters and costs across Figure 42: Oxyfuel
burners burner

Features
• Lower fuel consumption
• Higher temperature possible
• ~40-70% energy savings
• Uniform heating
• Lower emissions
• Average payback period: ~ 3-5 years

Case Study (Retrofitting Oxyfuel system to diesel burners)43

EE measure has been carried out in one of the steel unit with annual consumption of 2,284
MWhe of diesel with 1600 kW capacity. The investment cost of the oxyfuel burner system is
estimated to be INR 1.27 crore. This intervention in the unit has led to savings of 40% of the
annual energy consumption with simple payback of 3.9 years and 24.8% IRR44.

40 von Scheele, J., Mahoney, W., Ritzén, O., Linde, Hydrogen Steelmaking Solutions for Melting, Reheating, and
Gasification, 2020, [Link]
41 Air Products, APCOS™ Technology—Air Products Cupola Oxy-fuel System for Iron Production,

[Link]
42 Messer group, OXIPYRTM for Ladle Preheating, [Link]
43 Linde Gas, Maximize efficiency in ladle preheating with OXYGON®, [Link]

[Link]/en/industries/steel_metal/steel/oxyfuel-solution-for-ladle-preheating/[Link]
44 Linde Gas

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Regenerative Burner System

Regenerative burner system is an energy efficient alternative to conventional burners for metal
heating purposes. Regenerative burner system has two burners which operate alternatively in
regenerative and combustion modes respectively. In regenerative mode, the incoming
combustion air to the burner is preheated by the flue gas from the combustion mode of the other
burner (Figure 43). Thus, these systems offer continuous high thermal efficiency operations. The
regenerative systems can reduce the energy consumption by 30-70%45 along with emissions.
These systems can achieve preheating temperatures over 1000 °C. A comparison of different
burner systems is presented in Figure 43.

Figure 43 Operation of Regenerative Burners

Features
• Lower fuel consumption
• Higher heating temperature
• ~30-70% energy savings
• Lower emissions

45Nutec Bickley, Regenerative Burner Retrofits, [Link]

ovens/products-for-metals/regenerative-burner-retrofits

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Hydrogen as a fuel
Use of hydrogen as a fuel can
reduce the CO2 emissions by
100%. Hydrogen can be used in
various stages of metal heating
processes. Hydrogen can be used
in oxyfuel burners for a flameless
operation as a standalone fuel or in
mixture with other fuels. Hydrogen
and oxyfuel combination can also
be used for steel reheating. State-
of-the-art oxyfuel hydrogen
reheating solution such as Linde
REBOX can achieve uniform Figure 44: Hydrogen fired oxyfuel burner
temperatures within a margin of 5
°C46. A hydrogen fired oxyfuel burner under operation is shown in Figure 44. Hydrogen can also
be used to provide protective atmosphere in heat treatment furnaces for processes such as
annealing, hardening and brazing47. The hydrogen atmosphere can reduce iron oxide to iron and
control carbon percentage steel. Also, with oxygen, hydrogen can provide thermal energy for heat
treatment.

Features
• Lower fuel consumption
• Higher temperature possible
• Lower NOx and CO2 emissions
• Possible production from renewable energy sources
• Decreased scaling losses

46 von Scheele, J., Mahoney, W., Ritzén, O., Linde, Hydrogen Steelmaking Solutions for Melting, Reheating, and
Gasification, 2020, [Link]
47 L&L Furnace, Heat Treatment Furnace Atmospheres: Inert Gas and Hydrogen, 2019,

[Link]

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Best Operating Practices48

Best operating practices (BOP) with the regular monitoring helps in the maintaining the best operational efficiencies, regular monitoring of equipment
also help in reduction of the failure of the system. To support the MSMEs with quick guidelines to monitor the equipment and utilities, BEE had launched
the energy conservation guidelines for MSME sectors in 2019. This section covers the BOP, monitoring parameters and SEC/Efficiencies defined for
forging as per energy conservation guidelines by BEE. MSMEs shall also carry out the regular maintenance and of the equipment’s as specified by
the OEMs.

Table 29: Best Operating practices for forging and heat treatment furnaces

Equipment Best Operating Practices Parameters to be monitored SEC/Efficiency range

• Maintain the appropriate air fuel ratio • Fuel flow rate (litre/hour)
o Liquid fuel – 1.15-1.20
• Material flow rate (tonne/hour)
o Gaseous fuel – 1.12-1.15
Fuel Fired • Fuel gas temperature
• Maintain the appropriate surface temperature • 70-100 litre per tonne
Furnaces • Surface temperature of furnace
o Ceiling – 110-120 ⁰C
o Side wall – 85-100 ⁰C • Temperature of hot metal
• Flue gas exit temperature – 250-300 ⁰C • Air fuel ratio
• Temperature of the hot metal
• Forging furnace:
• Use appropriate coil size for the job • Cooling of the coil
Induction 350-450 kWh/tonne
• Maintain the furnace surface temperature 70- • Power consumption by furnace (kWh/hour)
furnaces • HT furnace: 120-150
90 ⁰C • Material flow rate (tonne /hour)
kWh/tonne
• Surface temperature of furnace

Table 30: Best Operating practices for Utilities in forging industry

Equipment Best Operating Practices Parameters to be monitored SEC/Efficiency range

• Operate the compressor at the optimal
• Power consumption • Reciprocating – 0.20-0.25
pressure requirement
• Air flow kWh/cfm
• Limit the compressed air leakage within
Compressed • Pressure of compressed Air • Screw single stage – 0.14-0.25
3% to 10%.
Air system • Loading and Unloading time kWh/cfm
• Maintain operating SPC within the design
• Pressure drop in piping system • Screw multistage – 0.18-0.25
range as provided by the OEMs.
• Pressure drop across the filters kWh/cfm
• Periodic cleaning of the suction filters

48 [Link] Accessed on 12th August 2020

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Equipment Best Operating Practices Parameters to be monitored SEC/Efficiency range

• Ensure the optimal dryer operation
• Maintain specified air temperature after
intercooler
• Operate the pump close to the design
values
• Replace rewound motors in pumps with • Pressure at pump discharge • Efficiency of the pump set 60-85%,
Pump and IE3 motors or higher efficiency class • Pressure drop in the system depending upon the flow and head
Pumping • Ensure the no leakage in piping system • Flow at the pump discharge of the pump set (Refer the pump
system and valves shouldn’t be throttled as • Power consumption by the pump curve supplied by the
much as possible set manufacturer)
• Use star rated pump sets if size is small
and available with BEE star label
• Backward curve aerofoil shaped
• Operate the pump close to the design • Energy consumption blades – 79-83%
values • Draft across the suction and • Modified radical curve blades -72-
Fans and
• Replace rewound motors in pumps with delivery 79%
blowers
IE3 motors or higher efficiency class • Temperature of the air entering the • Radial blades- 69-75%
• Periodic cleaning of the suction filters fan • Pressure blower – 58-68%
• Forward curve blades – 60-65%
• Maintain cycle of concentration (COC) of • Ambient dry and wet bulb
8 to 10 for optimum performance. temperature
• COC – 8-10
• Maintain approach of 4 °C – 5 °C. • Cooling water inlet and outlet
Cooling • Approach 4-5 degree centigrade
• Control the drift loss 0.001% – 0.005% of temperature
towers • Range 8-9 degree centigrade
circulating flow rate. • Circulating water flow rate
• Drift Loss – 0.002% - 0.005%
• Replace rewound motors in pumps with • Make up water flow rate
IE3 motors or higher efficiency class • TDS in the make-up water
• Use IE3 or higher rating motors • Voltage • Refer Efficiency of Motor as per
• Use BLDC motors for fans, blowers etc. • Current catalogue of motor manufacturer
Electric
• Maintain voltage and current imbalance • Power factor • Efficiency varies in rage of 75%-
Motors
as low as possible as prescribed by IEEE • Harmonics 95% for different rating of the
• Replace the motor after rewinding once • Electricity energy consumption motors from 0.3 kW- 500 kW
• Voltage , Current, Power factor
• Maintain winding temperature within 100
• Oil temperature • Refer Efficiency as per catalogue
Transformer °C –120 °C.
• Winding temperature of manufacturer or refer star
• Maintain oil temperature within 90 °C.
• Harmonics (Voltage and Current)

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Equipment Best Operating Practices Parameters to be monitored SEC/Efficiency range

• Maintain unity power factor at the • Tap position if available label49, generally efficiencies are in
transformer. rage of 97-99%
Maintain the appropriate lux levels
• Administrative building 50–400
• Monitor the lux level
• Administrative corridor 100
Lighting • Monitor the power consumption
• Shop floor lighting (process) 150–300 • 90-120 watt/lumen50
System • CRI to be monitored where
• Workshop 150–300
required
• Warehouse storage area 100–150
• Use 3-5 star rated LED lights

49 [Link] Accessed on 13 August 2020

50 BEE Star rated appliances - [Link] Accessed on 13 August 2020

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Compressed Air Management

Use of multiple compressors to cater to variations in
compressed air requirement, can lead to non-optimal
operation, and can lead to higher energy consumption
depending on the relative efficiencies and operating times
of the compressors (Error! Reference source not f
ound.). The sequential air management systems can be
used to manage the compressed air flow requirements
through sequential control of air compressors connected to
a common air distribution system. The most efficient compressor operates for majority of the time
and the higher air requirements are progressively achieved by switching other compressors as
and when required in the succession of the previous one. Thus, compressor modulation based
on air flow requirements can lead to energy savings of up to 30% (Error! Reference source not f

1029 kWh/day
60
50
Power, kW

40
30
20
10
0
02/02/2015 9:18

02/02/2015 18:56
02/02/2015 0:00
02/02/2015 7:36
02/02/2015 8:10
02/02/2015 8:44

02/02/2015 9:52
02/02/2015 10:26
02/02/2015 11:00
02/02/2015 11:34
02/02/2015 12:08
02/02/2015 12:42
02/02/2015 13:16
02/02/2015 13:50
02/02/2015 14:24
02/02/2015 14:58
02/02/2015 15:32
02/02/2015 16:06
02/02/2015 16:40
02/02/2015 17:14
02/02/2015 17:48
02/02/2015 18:22

02/02/2015 19:30
02/02/2015 20:04
02/02/2015 20:38
02/02/2015 21:12
02/02/2015 21:46
02/02/2015 22:20
02/02/2015 22:54
02/02/2015 23:28
BSD 81 ASD 57 ASD 37
Figure 46 Sub-optimal operation of compressors

775 kWh/day
60
50
Power, kW

40
30
20
10
0
05/07/2015 0:00

05/07/2015 18:34
05/07/2015 0:48
05/07/2015 1:36
05/07/2015 2:24
05/07/2015 3:12
05/07/2015 4:00
05/07/2015 4:48
05/07/2015 5:36
05/07/2015 6:24
05/07/2015 7:12
05/07/2015 8:00
05/07/2015 8:48
05/07/2015 9:36
05/07/2015 10:24
05/07/2015 11:12
05/07/2015 12:00
05/07/2015 12:48
05/07/2015 13:36
05/07/2015 14:24
05/07/2015 15:12
05/07/2015 16:00
05/07/2015 16:48
05/07/2015 17:46

05/07/2015 19:22
05/07/2015 20:10
05/07/2015 20:58
05/07/2015 21:46
05/07/2015 22:34
05/07/2015 23:22

BSD 81 ASD 57 ASD 37

Figure 45 Compressed Air Management System
ound. & 46).

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Use of Appropriate coil diameter for IBH

IBH Most forging units use single coil to heat multiple size jobs. IBH works most efficiently when
the coil diameter (IBH) is same as the metal piece diameter. Higher coil size leads to loss of the
energy through the air gap leading to Higher SEC. To maintain the clearance and provision of the
metal expansion due to heating, slight tolerance of 1-2 mm is considered over the piece for smooth
operations.

Features
• Lower loss of the energy
• Lower SEC of IBH
• Average Payback Period: ~ 12-36 months

Optimal Capacity air blower

Use of the natural gas is better than the use of the furnace oil for the furnaces. Natural gas is
cleaner fuel compared with Oil. Gas fired burners are having higher efficiency as compared with
oil fired burner due to better air to fuel mix, also lower quantity of excess air is required for gas
fired system vis-à-vis oil fired system – thus leading to lower flue gas loss. Emissions (SOx, NOx)
from the NG are lower and can be controlled better.

Low capacity air blower Optimum capacity air blow

Figure 47: Optimal capacity combustion air blower

Features
• Higher efficiency due to lower flue gas loss
• Higher combustion efficiency
• Lower emissions, Cleaner workspace
• Average Payback Period: ~ 18-24 months

Case Study51

EE measure has been carried out in one of the MSME unit with average production of 1,000
tonne per year for three heat treatment furnaces, under BEE-WB-GEF-SIDBI programme.
This intervention in the unit has led to saving of 12% of the energy consumption of the
furnace with simple payback period of 21 months.

51 [Link] Accessed on 13th August 2020

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Cogged V-Belt
The Cogged V-Belt are 3-5% more efficient than the normal V-let thus, it is recommended to
replace the standard V-belt with cogged V-Belt this will help in reducing the energy consumption
as they reduce the slippage between rotating parts. The cogged V-belt also has improved useful
life. The cogged V-belt cost between INR 10,000 to 20,000 depending on the load requirements.
Replacing with these belts on transmission systems can reduce 1-3% of the electricity
consumption of the motors.

Before: Flat V-belts used After: Use cogged V-belts

Figure 48 Use of Cogged V-Belt

Key Feature: Reduction of heat loss from surface

Case Study
In a steel unit, it was estimated that replacement of V-belts with cogged V-belts can improve
the transmission efficiency by 3%. This EE intervention led to 183 kWh of savings per year.
The monetary investment required was INR 20,000 with a simple payback of 7 years.

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Solar PV installations
Forging unit have higher level of vibrations due du to forging operations (Hammers and presses)
also have slightly dust environment. Life of the panels is lowered due to higher vibrations in the
unit and solar panel efficiency deteriorates drastically in the dusty environment. Dust environment
along with flue gases also reduced the life of the solar structure. Moreover, most of the MSME
forging units have very limited rooftop space, also trusses and shed structure are not adequately
designed to withstand the load of the solar panel.

However, implementation of the solar PV is only possible with regular maintenance and cleaning
practise, unit an explore the options considering the feasibility of the solar Based on the capex
and opex cost of the Solar PV, especially considering the working conditions of the forging units.
While opting for solar PV unit should install the mono-crystalline PV panels (up to 20%) which
have best efficiencies.

List of Vendors / Suppliers of Energy Efficient Technology

Solutions
Table 31: List of prominent technology vendors
Technologies Prominent Contact details Email ID
vendors /
Suppliers
IGBT based Induction Plasma Mr. Hardik Khant hardikkhant99@[Link]
Billet heater Induction
IGBT based Induction Inductotherm Mr. RD Mehta rdmetha@inductothermindia.
Billet heater com
IGBT based Induction Megatherm Mr. Suchintya Paul [Link]@megatherm.c
Billet heater om
Induction heating coils Plasma Mr. Mayur Suhagiya ms@[Link]
Induction
Induction heating coils Inductotherm Mr. RD Mehta rdmetha@inductothermindia.
com
Induction heating coils Megatherm Mr. Suchintya Paul [Link]@megatherm.c
om
Gas based re-heating Dilwal Vigyan Mr. Anshul Kaushik dilwalkaushik@[Link]
furnace Praudyogikee
Pvt. Ltd.
Gas based re-heating Locally
furnace fabricated
Recuperator / Waste heat Locally
recovery fabricated
Waste heat recovery Spirax Sarco Mr. Nitin Sharma [Link]@[Link].
com
EE Burners Wesman delhi@[Link]
Burners
Drop Hammer and NKM Hammers nkhhammer@[Link]
Presses
Drop Hammer and Rattan 98761-20925
Presses Hammers
Screw Air compressor Atlas Copco Ms. Divya Purohit [Link]@[Link].
with VFD and WHR com
Screw Air compressor Kaeser Mr. Amit Rajpal [Link]@[Link]
with VFD and WHR compressors
Screw Air compressor Elgi Mr. Gopal Krishna gopikrishna@[Link]
with VFD and WHR
Cooling towers Delta cooling Mr. Ankur delta@[Link]
towers

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Technologies Prominent Contact details Email ID

vendors /
Suppliers
Heat Pump Promethean Mr. Ashvin K.P. ashwinkp@prometheanenerg
Energy [Link]
Blowers Generally
locally
fabricated
Blowers Alfa blowers Ms. B Sarita sales@[Link]
Blowers Srilaxmi Air Mr. Raju raju@[Link]
control
IE3 / IE4 motors Siemens Mr. Anshul Luthra [Link]@[Link]
IE3 / IE4 motors Crompton Mr. Sukhraj Singh [Link]@[Link]
Greaves
Aluminum compressed air Parker Legris Mr. Joy Dewan [Link]@[Link]
piping
Aluminum compressed air Samarthair Mr. Chetan Damle sales@[Link]
piping Pneumatics
Pvt. Ltd
Aluminum compressed air Luthra Mr. A Appare rl@[Link]
piping PNEUMSYS
EE pump sets Grundfos Mr. Laxesh Sharma laxesh@[Link]
EE pump sets Kirloskar Mr. L Joshi [Link]@[Link]
Pumps m>
IoT based EnMS Schneider Mr. Rohit Chashta [Link]@schneider-
Electric [Link]
IoT based EnMS Enerlly Mr. Nilesh Shedge [Link]@[Link]
IoT based EnMS Sensegrow Mr. Krishanu Sudi [Link]@[Link]
m
BLDC fans Sinox Mr. Himanshu sinoxpower@[Link]
Ajudia
BLDC fans Atomberg Mr. Rohit Vohra rohitvohra@[Link]
VFD drives Schneider Mr. Rohit Chashta [Link]@schneider-
Electric [Link]
VFD drives Siemens Mr. Anshul Luthra [Link]@[Link]
VFD drives ABB Mr. Vinay Tiwari [Link]@[Link]
Automation control JTES Mr. Parvinder Singh [Link]@[Link]
Systems
Thermo-ceramic / ISCT Mr. Nikhilesh [Link]@[Link]
Insulation coating
Thermo-ceramic / A-ONE Mr. Parth contactinsulation@[Link]
Insulation coating INSULATIONS

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C. Strategies for Decarbonization and

Circular Economy

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C. Strategies for Decarbonization and

Circular Economy
Forging sector is one of the energy intensive sectors. As a result, the sector also has a
considerable impact on the GHG emissions. The total estimated emissions related to the MSME
forging sector in India is ~2.4 million tonnes annually. The electricity, FO are a major source of
energy for forging in India. However, as the Indian electricity grid is highly dependent on the coal
for power generation, the forging units are responsible for GHG emissions indirectly. Whereas the
natural gas, oil used in forging units lead to direct emissions on-site.

The industries have a significant role to play in mitigating the effects of climate change and meet
the climate commitments made by India. Hence, it is necessary to explore strategies for
decarbonization of the forging sector. Apart from energy efficiency measures, the technologies
such as use of renewable energy sources such as solar, wind and biomass can play a vital role
in decarbonizing the energy demand of the forging in India. Furthermore, hydrogen is an emerging
energy source which also has an important role to play in a long-term low carbon future of the
sector and the economy as a whole. These technologies are discussed in subsequent sections.

Biomass Gasifier
Biomass is a net carbon-neutral alternative to fossil fuels when procured from sustainable sources
such as groundnut shells and saw dust. Biomass gasifier can be used to generate producer gas
from the biomass source through a sequence of thermo-chemical reactions. The producer gas
mainly consists of carbon monoxide (~20%), hydrogen (~17%), CO2 (~10%) and nitrogen (~50%)
apart from methane, water vapor and hydrocarbons in trace amounts. The producer gas can
replace the fossil fuels used in forging units - natural gas, FO and LDO. The construction and
working of two types of biomass gasifiers, updraft and downdraft, is shown in the following figure.

Figure 49 Working principle of Biomass gasifier

The biomass gasifier has several areas of applications relevant to forging units such as:
• Metal heating

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• Preheating furnace, and

• Heat treatment furnace

The producer gas has lower calorific

value (~2500 kCal/kg) as compared
to the fossil fuels. However,
substitution with biomass gasifier can
be cost effective and decarbonizing
measure for a forging unit. The
payback of less than one year has
been achieved in one of the foundry
units at Kolhapur using LDO for heat
Figure 50 Biomass Gasifier installation
treatment furnace.

Other strategies for decarbonization of the forging sector include fuel switching such as from
furnace oil to natural gas which have been discussed in the previous sections in detail.

Hydrogen
Hydrogen has high gravimetric energy density as compared to other fossil fuels typically used
presently. However, hydrogen production currently is not economically viable but several
countries as well as private players have committed to provide technological and policy
environment to accelerate the development of ‘green hydrogen’. These measures are projected
to reduce the cost of hydrogen production drastically in the coming decade. Green hydrogen is
the hydrogen produced from electrolyzers using renewable energy sources. The use of green
hydrogen as a fuel will effectively reduce 100% reduction in CO2 emissions.

In the metal heating, hydrogen can be used in various stages of the processes. Hydrogen when
used as fuel can be used to replace the existing sources completely or in combination of the fuel
such as natural gas co-firing. Some of the major applications are presented next.

Hydrogen for Metal heating in furnaces

Hydrogen can be used in oxyfuel burners for a flameless operation as either a standalone fuel or
in mixture with other fuels. Hydrogen and oxyfuel combination can also be used for steel
reheating. State-of-the-art oxyfuel hydrogen reheating solution such as Linde REBOX can achieve
uniform temperatures within a margin of 5 °C52. A hydrogen fired oxyfuel burner under operation
is shown in Figure 44.

Hydrogen for heat treatment

Hydrogen can also be used to provide protective atmosphere in heat treatment furnaces for
processes such as annealing, hardening and brazing53. The hydrogen atmosphere can reduce
iron oxide to iron and control carbon percentage steel. Also, with oxygen, hydrogen can provide
thermal energy for heat treatment.

52 von Scheele, J., Mahoney, W., Ritzén, O., Linde, Hydrogen Steelmaking Solutions for Melting, Reheating, and
Gasification, 2020, [Link]
53 L&L Furnace, Heat Treatment Furnace Atmospheres: Inert Gas and Hydrogen, 2019,

[Link]

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Features
• Lower fuel consumption
• Lower NOx and CO2 emissions
• Possible production from renewable energy sources

Rooftop Solar
Installation of solar PV on the rooftops is being taken up by industrial and commercial consumers
in the past few years due to reducing cost of solar panels. The rooftop solar PV can reduce the
electricity cost of the consumer and also help them in decarbonizing their energy demand. Rooftop
solar also offers flexibility to sell the excess power to the grid for additional revenue for the units.
However, there are several challenges associated with installation of rooftop solar:

• Space availability: For installation of solar panels, the MSME should have sufficient rooftop
space available. Furthermore, the installation should be on a strong and stable structure
which requires roof to have sufficient load bearing capacity. The efficiency of solar PV
ranges between 15-22% depending upon the type of PV module. Estimated energy
generation across different states where prominent forging clusters are present in India is
provided in the table below.
Table 32: Solar energy generation potential across different stated with prominent forging clusters54

Region Estimated Annual Generation (kWh/year) 55

Punjab 16,790
Karnataka 18,250
Gujarat 18,250
Delhi 16,790
Maharashtra 18,250

• Regular Cleaning: Due to various processes in the forging units and dust environment, the
solar panels are susceptible to acquiring dust which can reduce their performance
significantly. The degradation of output with dust is shown in the figure56. Hence, regular
cleaning and maintenance of solar panels is required which may lead to additional cost.
• Higher level of vibration in the forging press shops can failure of the solar modules, thus
hampering the long-term energy generation, hence panel should be installed with dampers
or away from the vibrating trusses.
• Policy challenges: The net metering policies are not favorable in many states and the sale
of power to distribution company may not lead to significant revenue for the unit.

Renewable Power Procurement

The rooftop solar offers power generation only to limited extent due to space constraints. Hence,
the direct procurement of renewable power through power purchase agreements is becoming a
viable option for industrial consumers for satisfying their power demand and thereby
decarbonizing the production. The PPA tariff is for renewable energy has been falling in the past

54 [Link]
55 Energy generation is estimated for the roof top of 100 square meter available for installation of solar PV without any
shadow effect during the day – estimated using the data from - [Link]
56 Maghami, M., et al., Power loss due to soiling on solar panel: A review, Renewable and Sustainable Energy Reviews,

Volume 59, 2016, Pages 1307-1316, ISSN 1364-0321, [Link]

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few years between the industrial consumers and renewable energy developers is also possible.
The hybrid wind-solar projects are also capable of supplying round the clock clean electricity to
their consumers. The effective electricity tariff lower than the grid electricity has been achieved in
various consumer segments whereas with falling cost of generation from renewables will also lead
to increasing viability for other consumer segments as well. For open access procurement of
renewable energy (wind and solar), the MSME units can opt for group captive as well as power
purchase agreement (PPA) with third-party RE developers.

A comparison of industrial tariff with the open access modes for major states having
foundry/forging cluster is provided in the Table below. The open access tariff for solar as well as
wind can be observed to be competitive or even lower than the existing industrial tariff set by the
utilities. Thus, in addition to reducing the environmental impact of the MSME units, these RE
solutions also have potential to reduce the financial expenditure on energy. The group captive
open access can be driven by the regional industrial associations. These measures can
significantly improve the global competitiveness of the Indian foundry/forging units.

MSME can save on the landed cost the energy (kWh) in range of Rupee 0.44 – 3.0 / kWh (captive
cost vis- a – vis the cost of power procured from DISCOM) though captive power plant (solar /
wind) installed in the same state where MSME is operating.

While drawing power from third party the MSME units need to pay the additional taxes and duties
levied by the state. MSME units can also explore the options for withdrawing power through open
access / long term PPA though group captives across the state borders, at relatively attractive
rates.

Wheeling power though central transmission network (across different states), MSMEs may incur
additional charges and different states levy different taxes and duties. Wheeling of RE power
especially through the third party route can be more expensive in certain scenarios considering
the taxes duties and additional changes levied by the state where power is produced and state
where the power is drawn. Hence MSME units can explore suitable RE partners and evaluate the
viability of landed cost of RE power at their unit in case of third party procurement. Detailed ranges
of the tariffs based on multiple combinations discussed above, are presented next.
Table 33: Comparison of electricity tariff DISCOM / Open access 57

Withdrawal Industrial Injection Solar (Rs./kWh) Wind (Rs./kWh)

State Tariff State
(Rs./kWh) Captive Third Party Captive Third Party

Karnataka 7.08 Karnataka 4.08 6.18 4.04 6.14

Rest of India 4.84 – 6.94 – 8.02 4.80 – 6.90 – 7.85

5.91 5.75

Punjab 6.60 Punjab 4.59 6.07 4.48 5.96

Rest of India 5.37 – 6.85 – 7.92 5.25 – 6.73 – 7.68

6.44 6.20

57
[Link] accessed on 31st January 2022

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Withdrawal Industrial Injection Solar (Rs./kWh) Wind (Rs./kWh)

State Tariff State
(Rs./kWh) Captive Third Party Captive Third Party

Gujarat 4.58 Gujarat 5.04 7.21 4.64 5.80

Rest of India 5.81 – 7.98 – 9.02 5.39 – 5.56 – 7.47

6.85 6.31

Maharashtra 7.30 Maharashtra 6.80 8.51 6.63 8.34

Rest of India 7.61 – 7.86 – 7.44 – 9.15 –

8.73 10.44 8.36 10.07

Tamil Nadu 8.40 Tamil Nadu 4.12 4.62 3.88 4.55

Rest of India 4.89 – 5.39 – 6.42 4.63 – 5.30 – 6.22

5.92 5.55

West Bengal 7.15 West Bengal 5.50 9.04 5.50 9.04

Rest of India 6.38 – 9.92 – 6.38 – 9.92 –

7.51 11.05 7.39 10.93

Jharkhand 5.57 Jharkhand 5.14 6.55 4.82 6.23

Rest of India 6.02 – 7.43 – 8.54 5.69 – 7.10 – 8.08

7.13 6.67

Summary of the power cost for the different forging clusters are presented next
Details of RE across different clusters

Table 34: Comparative analysis of the GRID power and RE power cost for different clusters

Cluster Cost of Cost of RE Total Total cost of Cost of power if RE

Name Electricity from Grid Electricity electricity component is:
(per unit)# (per unit) Consumptio (INR Crore) (INR/kWh)
##
INR / kWh n 30% 50% 80%
INR / kWh
(MWh)
A B C BxC (Wt. Average of A, B)
Ludhiana 6.6 4.5 645 293 6.0 5.6 4.9
Bangalore 7.1 4.1 40 16 6.2 5.6 4.7
Pune 7.3 6.7 155 104 7.1 7.0 6.8
Chennai 8.4 4.0 98 39 7.1 6.2 4.9
Delhi 5.8 4.3 172 73 5.3 5.0 4.6
#Only cost of energy INR /kWh is considered – demand charges and other specific changes will be levied

by as per SERC guidelines.

##
Only average cost captive generation is considered presented in the column

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Circular resource utilization

Major components of the circular economy 3R:-

• Reduce
• Reuse
• Recycle

Reduce – Most of the progressive forging in India have

adopted the state of art technologies and management
system to control the production processes, these
implementations help forging units to optimize the use of
the resources. Key Performance Indicators (KPI) which
drive the optimal utilization of the resources in the forging,
are identified as – process yield, production efficiency, capacity utilization, energy consumption,
scale loss etc. Use of the simulation in the forging units and foreign die development to produce
fleshless and net shape forging will help the forging industries to cut down the metal loss. Use of
the induction billet heater with controlled heating and temperature interlock helps the foreign units
to reduce the scale loss during metal heating operations.
Adoption of the new and state of technologies (flash less forging, simulation-based die and
product development) can help forging units to improve the yield up to 99% for some forgings,
thus will help in forging units to conserve the energy, water, metal and other resources while
maintaining the quality of the forged products. Details of the technologies are presented along
with case studies presented in technology compendium.
Reuse – Forging units consume water for the cooling operations the rejected water from the
cooling tower, process and other operations can be treated and re-used. Re-use will also help
forging units to conserve the energy and optimization the usage of the resources.
Recycle – Forging waste along with machining waste in form of – flash, coins, burr, scale is
rejected from the industry is used by the foundries. 100% of metallic rejects produced by the
industries in the sector, can consumed by the foundry sector – thus supporting the ecosystem of
recycling. Metal rejects and metallic waste are remelted by foundry sector to form new
components and products (billets and bars) these can be re-used by the forging industries to form
the forged products. Forging sector depends upon the foundry sector for the recycling of the waste
and rejections.

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D. Existing EE policy initiatives and

programmes for the sector

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D. Existing EE Policy initiatives and

programmes for the sector
Realizing the importance of creating enabling environment for MSMEs- BEE, MoMSME and
various international development agencies have been devising key programmatic interventions
and policies for the MSME sector.
MoMSME has developed special subsidies schemes and funds to support Energy efficiency in
MSME sectors. BEE had initiated an SME program during the year 2009 with an objective to
improve the energy performance of MSME sector. EE in the MSME sector has also remained on
the programme agenda of several institutes and development agencies, including GIZ, World
Bank, UNIDO, UNDP, IFC and JICA for a significant time now.
The activities undertaken under these interventions include ranging from direct financial and
technical support to capacity building and knowledge dissemination activities
• Financial support- Capital subsidies, soft loans, interest subventions, risk guarantee
mechanism
• Technical support- Energy audits, preparing IGDPRs and hand-holding support for EE
implementations
• Knowledge and capacity building- Preparation of cluster manuals, technology
compendium, energy benchmarks and awareness creation through workshops,
exhibitions, and technology demonstration
MSME specific EE policies, schemes, and programmatic interventions are categorized into mainly
following:

Govt. (MoMSME) supported subsidies scheme

•Credit Linked Capital Subsidy Scheme

•Technology and Quality Upgradation (TEQUP)
•Financial Support to MSMEs in ZED Certification Scheme

IDA led programmatic interventions

•GEF UNIDO BEE Program- Promoting EE and RE in Selected MSME Clusters

•GEF-World Bank BEE SIDBI Project- Financing Energy Efficiency at MSMEs

BEE Supported schemes

•BEE SME Programme- including Energy mapping studiy for MSME clusters
•Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE)

Although these interventions have demonstrated the effectiveness of the energy efficient
technologies however, the need of enabling eco-system for large-scale deployment of EE
technologies in MSMEs has been extremely limited.

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MoMSME supported schemes

The Government launched National Competitiveness Programme in 2005 with an objective to
support the Small and Medium Enterprises (SMEs) to become competitive and adjust the
competitive pressure caused by liberalization and moderation. MSME Ministry employs the
programme under the guidance of the National Manufacturing Competitiveness Council. Main
components of the programme were aimed to address MSME competitiveness issues. 10
components of the programme are illustrated below-
• Support related to entrepreneurial and managerial development of SMEs by means of
incubation
• Improving quality through Quality Management Standards in addition to technology Tools
• Technology up-gradation and quality certification assistance to SMEs
• Marketing assistance to MSMEs
• Marketing assistance for SMEs and technology up-gradation activities
• Design clinic scheme to convey design or innovation expertise
• Promotion of ICT
• Setting up the Mini Tool Room in addition to Training Centers
• Building awareness on Intellectual Property Rights
• National Programme related to the function of Lean Manufacturing

Few of these initiatives help in improvement in the efficiency of the MSMEs, adoption of the new
energy efficient technologies and developing the ecosystem for energy efficiency, lean
manufacturing, ZED leading to lowering the emission.

Credit Linked Capital Subsidy Scheme (CLCSS) for Technology

Upgradation of the Small-Scale Industries58
The Credit Linked Capital Subsidy Scheme (CLCSS) facilitates subsidy to 51 sub-
sectors/products. The main objective of the scheme is to facilitate technology up-gradation in
MSMEs by providing an upfront capital subsidy for installation of well-established and improved
technology in the specified sub-sectors/products approved. This scheme provides capital subsidy
of 15% on actual term loan sanctioned and disbursed, with maximum limit of eligible loan of 1 Cr
(maximum 15 lakhs of subsidy)

At present the Scheme is under revision and will be launched soon after obtaining the necessary
approvals. Capital Subsidy disbursed under the scheme reaches to Rs. 2360 crore. The fund
expenditure incurred for FY 20 was Rs. 438.59 Crore with 87.15% of allocated funding was
disbursed for FY 2020-21.
Table 35: Key features of the CLCSS scheme

Feature Description
Facilitate technology up-gradation in MSEs by providing an
Objective
upfront capital subsidy
Installation of appropriate eligible and proven technology
Eligibility Criteria approved under scheme (list based)
(Covers technologies from 51 sectors/ sub-sectors)
15% Capital Subsidy, with maximum limit of eligible loan of 1
Type of support
Cr (15 lakhs of subsidy)

58 [Link] - Assessed on 29 August 2020

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Feature Description
Supported by MoMSME. 11 nodal agencies including SIDBI
Nodal agencies
and 10 other PSU banks
Budget Allocation and All allocated funds were disbursed. 65,000 beneficiaries and
disbursed till date 4000 Cr. Funds disbursed
Current Status (along with Inception 2000, At present the scheme is under revision and
Year of inception) running under sunset clause

Technology and Quality Upgradation (TEQUP)

Main objective of this scheme was to sensitize MSME Sector by conducting Awareness
workshops to adopt Energy Efficient Technologies and acquire Product Certification/ Licenses
from National/ International Bodies.

This scheme also supported the MSME with financial assistance in the form of subsidy to the
extent of 25% of the project cost for implementation of Energy Efficient Technology (EET). The
maximum amount of subsidy will be Rs. 10 Lakh for project cost of Rs. 40 Lakhs.

This activity is implemented through various nodal banks. The scheme was in operation59 till
30.09.2017 and over 4500 MSMEs have been reached through workshops conducted under this
scheme; total of 202 awareness workshops were conducted in different MSME clusters. 300
MSMEs were assisted for energy efficient technologies, and 1100 units were assisted for
production certification under the programme. Financial outlay of 90 crore has been supported
government for this scheme since inception.
Table 36: Key features of the TEQUP scheme

Feature Description

1. Sensitize and encourage the manufacturing MSMEs to the use of EE

Technologies and Manufacturing Processes
Objective
2. Encourage the MSMEs to acquire Product Certification/ Licenses from
National/ International Bodies

Technical Assistance along with capital subsidy based on eligibility based

Type of support
on technical studies

1. Provide Financial Assistance in the form of subsidy to the extent of 25%

of the project cost for implementation of Energy Efficient Technology
Benefits under (EET). The maximum amount of subsidy will be Rs. 10 Lakh.
the scheme 2. Provide subsidy to MSME units to the extent of 75% of the actual
expenditure incurred by them for obtaining Product Certification Licenses,
maximum subsidy of 2 lakh
The Detailed Project Report (DPR) to be prepared by a Qualified Energy
Manager/Auditor.
Eligibility Criteria
The EET machinery installed should have minimum of 15% energy
saving, and EA audit report also to be submitted
Supported by MoMSME. SIDBI is the nodal agency and 6 FIs are
Nodal agencies
empanelled including SIDBI

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Feature Description

Total no. of beneficiaries 1188, total disbursement 89.94 Cr. (only 40% of
Disbursement allocated funds were disbursed)
and status i. MSME assisted for EET ~ 300,
ii. Units assisted for product certification ~ 1100
Launched in FY 2010-11, The scheme is not fully operation since 2017,
Current Status
very few disbursements in recent years

Financial Support to MSMEs in ZED Certification Scheme60,61

Main objectives of the scheme include inculcating Zero Defect & Zero Effect practices in
manufacturing processes, ensure continuous improvement and supporting the Make in India
initiative. This scheme was launched to provide support the MSMEs for:-
•Development of an ecosystem for Zero Defect Manufacturing in MSMEs
•Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
•Enable MSMEs for manufacturing of quality products.
•Encourage MSMEs to constantly upgrade their quality standards in products and
processes.
• Drive manufacturing with adoption of Zero-Defect production processes and without
impacting the environment.
Financial outlay of 100 Crores was contributed by Government of India62 during 2019-20 under
the ZED programme for MSME sector.

Lean Manufacturing Competitiveness Scheme (LMCS)63

The Pilot Phase of Lean Manufacturing Competitiveness Scheme was approved for 100 MSME
Clusters. Main objective of the Scheme was to enhance the manufacturing competitiveness of
MSMEs through the application of various Lean Manufacturing (LM) techniques by:-
• Reducing waste
• Increasing productivity
• Introducing innovative practices for improving overall competitiveness
• Inculcating good management systems
• Imbibing a culture of continuous improvement

This scheme has supported over 4500 MSMEs since the inception of the programme in 2007,
financial support of over INR 58 crore has been provided by the government for this program
since inception till 2017.

Programmatic Interventions by Multilateral and Bi-lateral

Development Agencies / Banks
Public funding plays crucial role in the field of energy efficiency for MSMEs and a key source of
public funding in addition to government funded EE interventions is multilateral / bi-lateral
development banks, which help developing economies like India where the EE potential is

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maximum. Energy Efficiency in the MSME sector has also remained on the programme agenda
of development agencies, including IFC, World Bank, UNIDO, UNDP, JICA and GiZ etc. for a
significant time now.

“Financing Energy Efficiency at MSMEs” – BEE-SIDBI-WB-GEF

programme
Financing Energy Efficiency at MSMEs was a GEF funded projected aimed at increasing the
demand for energy efficiency investments in target micro, small and medium enterprise clusters
and to build their capacity to access commercial finance. The GEF implementing agency was the
World Bank and it was jointly executed by BEE and SIDBI. The project budget was USD 63.61
million.

The project is focused on 4 components:

• Activities to Build Capacity and Awareness
• Activities to Increase Investment in Energy Efficiency
• Knowledge Management
• Project Management Support

FEEM was conceived to complement the World Bank’s engagement with GoI on the $520 million
IBRD-funded SME Finance and Development Project. The GEF-funded FEEMP was designed to
increase the flow of capital for EE measures and address institutional weaknesses and capacity
constraints of FIs that restricted them from supporting MSMEs.
• Increase demand for EE investments in target MSME clusters.
• Build capacity of MSMEs to access commercial finance.

A few important achievements of FEEM are:

• Project was carried out in three phases, Phase -I interventions were carried out in five
clusters, later this programme was extended to twenty-five MSME clusters across India
• Programme covered 13 states and union territories including forging clusters in Pune,
Rajkot, Faridabad, Coimbatore etc.
• A total of 1,120 experts from 75 FIs and 750 energy audit professionals were trained to
develop energy audit reports on the basis of which commercial finance could be sought.
• 1,257 IGDPRs were prepared exceeding the initial target of 730
• INR 3,322 million direct EE investments from project
• Performance linked grant was given to 67 early adopters
• The project supported SIDBI’s “End-to-End Energy Efficiency (4E) scheme, the WB
supported revolving fund provided a maximum interest subsidy of 2.5 percent (increased
to 3.58%)

Promoting Energy Efficiency and Renewable Energy in selected MSME

clusters of India” BEE -GEF - UNIDO Project
Scheme Duration: April 2011 – Ongoing
Promoting EE & RE in MSME in India is a GEF funded project aimed at introducing energy efficient
technologies and enhancing the use of renewable energy technologies in process applications in
energy intensive MSMEs in 5 sectors (brass, ceramics, dairy, forging, foundry, and hand tools).
The GEF executing partner is UNIDO and other executing partners are BEE, MoMSME, MNRE.

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The project has 4 main components as detailed below:

• Increased capacity of suppliers of EE/RE product suppliers/service providers/finance
providers to support the expansion of EE/RE in the clusters.
• Increasing the level of end-use demand and implementation of EE and RE technologies
and practices by MSMEs.
• Scaling up of the project to a national level.
• Strengthening policy, institutional and decision-making frameworks.

A few important achievements from the scheme are:

22 Pilot projects implemented, 212 DPRs developed 7894 toe annual energy savings
478 EE & RE measures implemented 6.62 million US$ monetary savings
78 Workshops organized with 2250 participants 7.19 million US$ co-financing
220 case studies prepared 49896 tonnes of co2 emissions avoided

Programme supported hand tool clusters in Jalandhar and Nagaur, 144 projects were supported
under this programme in Jalandhar and 43 projects in Nagaur, leading to saving of over 768 tonne
of oil equivalent and reduction of over 5400 tonne of carbon dioxide annually.

BEE -SME programme 64

Considering the urgent need to develop, demonstrate and disseminate energy efficient
technologies at the cluster level, “National Programme on Energy Efficiency and Technology
Upgradation in SMEs” was evolved by BEE to address the various challenges faced by SMEs in
India, subsequently BEE initiated the BEE-SME programme in 2009.
Over 375 Bankable DPR’s for energy efficiency projects were prepared in 35 clusters across India.
Under the programme several initiatives were taken for capacity building of Local Service
Providers/Technology Providers. BEE facilitated implementation of Energy Efficiency Measures
through development of DPRs in 29 out of the 35 clusters for which baseline studies were
undertaken.
In recent years, under BEE SME programme various initiatives are being carried out as described
below, to boost energy conservation in the SME clusters.

Energy and Resource mapping of SME sector

BEE is presently conducting an energy and resource mapping study in the most energy intensive
MSME sectors in the country. Study is presently being carried out in nine energy intensive sectors
(Forging, Foundry, Bricks, Chemicals, Dairy, Glass and refractory, Pharma, Steel) in 45 MSME
clusters across the country. Main objectives of the study are
• Evaluate the present specific energy consumption of the different MSME clusters for nine
sectors
• Evaluate the extent of EE improvement potential across these sectors
• Estimation of energy efficiency improvement, energy saving potential for each sector.

Key expected outcome of the study will include – preparing of roadmap for these sectors to make
them energy & resource efficient. Study will also prepare list of policy level recommendations
required for faster adoption of the energy efficiency measures in these sectors.

Development and Launch of knowledge portal for SMEs

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A knowledge management portal - Simplified Digital Hands-on Information on Energy Efficiency

in MSMEs (SIDHIEE) has been developed by Bureau of Energy Efficiency which hosts variety of
knowledge resources like case studies, best operating practices, details of latest energy efficient
technologies etc. Dissemination of Recognizing the importance and effectiveness of well-
presented success stories to ensure widespread replication of efficient technologies and
practices, BEE has developed around 50 multimedia presentations showcasing successful case
studies of implemented EE interventions for different MSME sectors. These are now being widely
disseminated and are hosted in the Knowledge Management Portal “SIDHIEE” created under the
BEE-SME Programme.

Promoting Energy Efficiency and Technology Upgradation in SMEs through ESCO

BEE has institutionalized Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE), which
provides a partial coverage of risk involved in extending loans for Energy Efficiency projects.
PRGFEE guarantees up to 50% of loan amount or Rs. 10 crore per project, whichever is less.
PRGFEE support has been provided to government buildings, private buildings, municipalities,
SMEs, and industries. This guarantee is extended to participating financial institutions which will
extend loans to ESCOs for implementing EE projects.
Under the IFC Eco-cities programme supported by BEE, investment grade DPRs are presently
being prepared for energy efficiency investments at MSMEs in 4 ECO-Cities across India, wherein
a pipeline for loans benefitting from PRGFEE is expected to be created.

Dissemination of EE technologies and Awareness:

a. More than 60 Capacity building cum Knowledge dissemination programme were
organized in SME clusters for dissemination of available energy efficient technologies in
SME sectors. National Summit on Energy Efficiency in SMEs was also organized in
consultation with leading stakeholders for further scaling up the project for transformational
results.
b. Identification of Local Service Providers and Suppliers: About 70 local service providers
were identified for offering services and supplies of various technologies in 5 clusters for
ensuring the replication of the identified technologies in the clusters.

GiZ Initiative for secondary steel sector (including Forging)

Baseline energy audit and benchmarking study for secondary steel sector in India

GIZ is fully owned by the German Federal Government that supports developing the multiple
programs with partner countries on behalf of the German Government with ultimate goal of
sustainable development. The Federal Republic of Germany and the Government of the Republic
of India have, under the Indo-German Technical Cooperation, agreed to jointly promote the “Indo-
German Energy Programme” (IGEN) with the aim to promote energy efficiency/conservation,
renewable energy, access to energy, etc. and in turn improve the environment/climate protection.
GiZ India team works in collaboration with the Bureau of Energy Efficiency (BEE), for the
implementation of the Energy Conservation Act (EC Act, 2001), focusing on energy efficiency and
conservation.
GiZ is undertaking “Energy Efficiency in Industry and Data” for secondary steel sector in India with
boarder objectives –
• Building the capacity of State Designated Agencies (SDAs) to promote energy efficiency in
plants under the secondary steel sector, that are not covered in the PAT scheme

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• Developing tools and knowledge products for Non-PAT secondary steel and pulp and paper
plants with access to information on key energy efficiency processes and technologies
• Promote peer-to-peer learning among SDAs and Non-PAT secondary steel industrial clusters
• National Energy Efficiency dialogue for secondary steel and pulp and paper sector between
policy makers, research institutions and business associations.
• Developing the energy consumption baseline for Non-PAT industries in secondary steel
sector
• Promoting the adoption of energy efficiency measurers
• Empowering the stakeholders with necessary information for energy efficiency related
decision making
• Preparing the long-term energy efficiency scenarios of the sector for policy makers

Uptake of existing and past EE interventions and schemes

Indian govt. has undertaken several policies, schemes and programs targeted at promoting
energy efficiency in the MSME sector. Energy Efficiency in the MSME sector has also remained
on the programme agenda of development agencies such as WB, JICA, IFC, GIZ, UNIDO, UNDP
etc.
As single scheme/ interventions cannot eliminate all technical. financial and capacity building
barriers faced by MSMEs while adopting energy efficiency enhancing projects. Accordingly,
various schemes/ interventions have been introduced to promote MSMEs and energy efficiency
or with a focus of promoting energy efficiency centric activities in MSMEs.
While these programmatic interventions have made an impact, there is a long way to go before
majority of MSMEs voluntarily increase their uptake of energy efficiency interventions. The
observations on the current and past EE schemes & interventions are presented below
Table 37: Major features and key takeaways from different schemes

Major Feature Key Schemes Observations/Takeaway

• High uptake of the scheme due to direct
financial benefits such as capital
Credit Linked Capital subsidies
Capital
Subsidy Scheme
Subsidy (CLCSS) • Widely disseminated through
schemes comprehensive list of lending institutes
High uptake
• List-based approach simplifies the
process
• Scheme requirements such as Energy
Technology Up-
Subsidy DPR increases the transaction cost and
gradation Scheme for
linked to lead time
MSMEs (TEQUP)
Energy audits • Lack of promotion and awareness of the
Low uptake
scheme among MSMEs
• ESCO eco-system, required for
PRSF, PRGFEE- scalability, is not yet developed,
Risk Low uptake • Need of energy study & M&V process
guarantee increases the project cost at MSME level
mechanism • Simple procedural norms, less documents
CGTSME- High uptake • No need of project report for availing
guarantee under the scheme
WB-GEF FEEMP • TA programs create awareness on EE
Long term amongst different MSME stakeholders
Technical High Uptake
Assistance • Create culture for EE in clusters due to
BEE SME Programme long term support, but not market driven

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Major Feature Key Schemes Observations/Takeaway

High Uptake • Able to cater to part of the MSME sector,
UNIDO-GEF EE & RE as outreach to limited number of clusters
Adoption- High Uptake
• Long list of EETs helped in faster loan
List based JICA SIDBI – High appraisal, hence higher uptake
scheme uptake • SPEED Plus scheme promotes
collaboration with OEMs/ vendors

Revolving SIDBI 4E Scheme- • Requires pipeline generation at cluster/

funds for EE Medium uptake sector level for faster up-taking

State of art technology research institutes

The National Institute of Foundry and Forge Technology, Ranchi65

National Institute of Foundry and Forge Technology (NIFFT) is a public engineering and research
institution in Ranchi. It was established in 1966 by the GoI in collaboration with UNDP to provide
qualified engineers and specialists for running foundry and forge industries.

Since its inception, institute has been supporting the Foundry and Forging sector to meet the
technology advancement and demand of trained skilled manpower. Institute is the front runner in
supporting the foundry and forging sectors by development and research in the area of Metallurgy
and Materials Engineering and other in Manufacturing Engineering. The institute hosts world class
publications66 and research papers for the continuous improvement in the sectors with aim of
developing the new technologies to meet the future requirement of the forging, foundry, and
manufacturing sector.
There is need felt across the AIFI regional chapters to leverage this premium institution for
preparing the new skillset for the work force in the forging sector. This premium institution can
play the leading role in developing the new age of the skillset required by the forging industry to
meet next generation of technological advancement

State level initiatives

Promotion of Energy Audit and Conservation of Energy (PEACE)67

Government of Tamil Nadu has launched the PACE scheme with broader objective to foster the
EE culture across the MSME sector. Main objectives of the scheme are –
a. Creating awareness and promoting the advantages of new EE technologies.
b. Identification of the gaps and barriers hindering the uptake of the for-energy conservation
and promoting adoption of suitable techniques for energy efficiency and energy
conservation.
c. Promoting the culture for conducting the energy audits to improve energy efficiency and
implementing the fuel substitution and monitoring the implementation of recommendations
suggested by energy auditors.

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d. Subsidy offered to MSMEs - 50% of the Energy Audit cost subject to a maximum of 75,000
thousand Rupees per energy audit per unit.

Financial Incentives for MSMEs in state of Punjab68

Energy department in state of Punjab supports the MSMEs in the region with multiple financial
incentives to promote the adoption of the new EE technologies and promote the uptake of the
energy audit in the MSME units. Broader objective of the incentives offered by the state
government is to promote the sustainable cluster of conserving energy in the MSME units. Some
of the key financial incentives offered by the government are –
a. In addition to the 15% up front capital subsidy offered by GoI under CLCSS scheme, state
Government is supporting MSMEs with additional interest subsidy @ 5% up to a maximum
of 5 lakhs per year for a period of 3 years.
b. Assistance for technology acquisition for MSME, state government is offering the subsidy
up to 50% on the cost for adopting technology from recognized National Institutes subject
to maximum of 25 lakh Rupees.
c. State government is supporting MSMEs with 100% reimbursement of guarantee fee
charged by the financial institution from the MSME up to one lakh Rupees under CGTSME
scheme offered by the GoI.
d. Reimbursement of expenses incurred on Energy Audit to MSMEs, up to 75% of the cost
of energy audit (pre-audit and post energy audit) is reimbursed to MSMEs with maximum
value up to Rupees two lakh.
e. Reimbursement of expenses incurred on Water Audit to MSMEs, up to 75% of the cost of
energy audit (pre-audit and post water audit) is reimbursed to MSMEs with maximum value
up to Rupees one lakh.

Financial Incentives for MSMEs in state of Gujarat69

Government of Gujrat (GoG) is frosting the culture of energy efficiency and energy conservation
for the MSMEs. GoG with multiple schemes and polices supports MSMEs financially to uptake
the new EE technologies. Key incentives offered by the state government are –
a. Reimbursement of expenses incurred on Water Audit to MSMEs, up to 75% of the cost of
energy and water audit is reimbursed to MSMEs with maximum value up to Rupees fifty
thousand and 25% of cost of equipment recommended by the auditing authority subject
to maximum INR 20 lakhs.
b. To encourage innovation and adoption of new EE, cleaner production and sophisticated
technologies by MSME, GoG provide fiscal support to MSMEs for purchase of new
technologies as well as in acquisition of patented technologies from foreign companies.
MSMEs are entitled by the GoG for financial assistance up to 65% of the cost payable with
upper limit of Rupees 50 lakhs for acquisition of technology.

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