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The Industry Sector
The Indian industrial sector consumes ( as fuel and feedstock) about half of the country's total commercial energy production. Coal and lignite meet over half (57%) of industrial commercial energy requirements.
- A few energy-intensive industries, including fertilizers, aluminium, textiles, cement, iron and steel, pulp and paper, and chlor-alkalis, consume around 65% of industrial energy.
- India is the third largest producer of nitrogenous fertilizers in the world. The ammonia production process is highly energy-intensive, using large amounts of petroleum-based fuels.
- Energy accounts for nearly 40% of aluminium production costs. While electricity constitutes 80% of total energy-use, coal and fuel oil are also used.
- In textiles - India's single largest organized industry - energy in the form of coal, electricity, and furnace oil accounts for an estimated 12%-15% of total cost of production. Energy-saving potential is estimated to be as high as 23%.
- India is the third largest producer of cement in the world. Coal is the main source of energy for cement production. While most of the new and large units compare well with the world's most energy-efficient plants, an estimated 10% savings is possible in the older units.
- The iron and steel sector is the largest consumer of energy in the industrial sector. Energy constitutes 30%-35% of the cost of production of iron and steel, with 70% of energy being used in making iron in the blast furnace. Coking and non-coking coal, liquid hydrocarbons, and electricity are used.
- Energy costs constitute 30% of total manufacturing costs in pulp and paper. Larger mills that have chemical recovery systems and cogeneration are more energy-efficient than the smaller mills.
- In the chlor-alkali industry, energy accounts for 50%-60% of total production costs and the energy-saving potential is estimated at 15% of total energy used.
The industrial sector consumes abut 50% (including feedstock) of the total commercial energy produced in the country. The total industrial energy consumption, including non-energy uses, grew from 45.7 MTOE (million tonnes of oil equivalent) in 1984/85 to 113.1 MTOE in 1996/97. Of the commercial sources of energy, coal and lignite contribute about 57% , oil and natural gas 33%, hydroelectric power 3%, and nuclear power 0.2%.
There is tremendous scope for improving energy efficiency in namely fertilizer, aluminium, iron and steel, textiles, cement, chemicals, and pulp and paper energy-intensive industries which account for 65% of the total industrial energy consumption.
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