AMAI

 A Regulation of Government of India.  A market based mechanism to enhance the cost effectiveness in improving the energy efficiency in energy intensive industries thro’ certification of energy saving, which can be traded.  Industry need to look at PAT as an opportunity to install mechanisms for successful performance and to improve profitability.  Associated with market mechanism, brings revenue opportunity and brings in competitive spirit.  Incentives for cleaner and energy efficient measures.  Benefit of Compliance – One Tradable ESC per MTOE issued, if unit excels the target.  Financial liability for shortfall (Rs. 10 lakhs + Cost of Rs /- per MTOE).  For misrepresentation – cost of unfair gain + 25% penalty.

AMAI Based on the above, 22 DCs notified in Chlor-Alkali Sector for First PAT Cycle ( to ). 12,000 MTOE

AMAI RegionS.No.Name of the Unit East1ABCIL, Jharkhand (with CPP) 2ABCIL, Renukoot West3ABNL, Veraval 4DSCL, Jhagadia (with CPP) 5Grasim Industries Ltd., Nagda 6GACL,Vadodara 7GACL, Dahej, 8GFL, Dahej 9Meghmani Finechem Ltd., Dahej, (with CPP) 10Reliance Industries Ltd., Dahej, 11United Phosphorus Ltd., Jhagadia, RegionS.No.Name of the Unit North 12DSCL, Kota 13Lords Chloro Alkali Ltd., Alwar 14PACL, Naya Nangal 15Siel Chemical Complex Ltd., Rajpura South16Chemplast Sanmar Ltd., Karaikal 17Chemplast Sanmar, Mettur Dam 18DCW Ltd., Sahupuram 19Sree Rayalaseema, Kurnool 20TPL, Manali, (with CPP) 21The Andhra Sugars, Saggonda 22TCCL, Kochi

AMAI RegionS. No. Name of the UnitProduct Output (T) Baseline SEC (MTOE/T) Target SEC (MTOE/T) % Reduction East1ABCIL, Jharkhand (with CPP) 90, ABCIL, Renukoot96, West3ABNL, Veraval94, DSCL, Jhagadia (with CPP)112, Grasim Industries Ltd., Nagda 226, GACL, Vadodara179, GACL, Dahej,266, GFL, Dahej54, Meghmani Finechem Ltd., Dahej, (with CPP) 61, Reliance Industries Ltd., Dahej, 173, United Phosphorus Ltd., Jhagadia, 58,

AMAI Regio n S. No. Name of the UnitProduct Output (T) Baseline SEC (MTOE/T) Target SEC (MTOE/T) % Reduction North 12DSCL, Kota106, Lords Chloro Alkali Ltd., Alwar 45, PACL, Naya Nangal88, Siel Chemical Complex Ltd., Rajpura 75, South16Chemplast Sanmar Ltd., Karaikal 49, Chemplast Sanmar, Mettur Dam 57, DCW Ltd., Sahupuram85, Sree Rayalaseema, Kurnool 116, TPL, Manali, (with CPP)60, The Andhra Sugars, Saggonda 99, TCCL, Kochi50,

AMAI  National energy saving target under PAT = 6.6 mMTOE  Energy saving target for chlor alkali = mMTOE  Chlor Alkali Target is only 0.81% of total energy saving target under PAT Scheme.

AMAI  MULTI- CYCLE PROCESS –First cycle till  TARGET SETTING - based on gate to gate specific energy consumption (SEC) – GtG SEC - each designated consumer has to reduce SEC in target year ( ) as compared to baseline year ( ) - percentage reduction is based on efficiency in baseline year; efficient units in a sector have a lower percentage reduction target as compared to less efficient units  MONITORING AND VERIFICATION - designated consumers monitor and record their energy purchases and product sales - data to be provided to SDAs and BEE - data will be verified by accredited energy auditor for verification & check verification - check verification on sample basis GtG SEC = All forms of energy converted to Metric Tons of Oil Equivalent (MTOE) Equivalent Caustic Soda Production (T)

AMAI  INCENTIVIZATION AND TRADING OF EXCESS SAVINGS - Energy Saving Certificates issued for savings in excess of target; early issuance (after one year) is possible (upto 80%) - Certificates can be traded with other designated consumers who can utilize them to show compliance - Certificates can be banked for one more cycle - Trading platform on the two power exchanges (IEX & PXIL)  PENALTY FOR NON-COMPLIANCE - Quantum of non compliance is deficiency in meeting target at the end of the cycle - Penalty is the energy cost of quantum of non compliance - Quantum of non compliance is provided in verification report and penalty is adjudicated by SERC. - Converted energy cost is Rs 10,154 per toe ( ) shall be periodically updated

AMAI MandatoryVoluntary Action Plan submission by Unit After 3 months of Notificatio n NA Submission of Form 1Once in a year 30 th JuneNA Submission of Form A (Performance Assessment Document) Once in 3 years 30 th June 2015 Before Complianc e year 30 th June Submission of Form B (Verification by DENA) Once in 3 years 30 th June 2015 Before Complianc e year 30 th June Issuance of ESCertsOnce in a year Aug 2015 Before Complianc e year Aug Submission of Form D (Performance Compliance Document) Once in 3 years 30 th Nov 2015 NA

AMAI  Industry moves towards clean and advanced energy efficient technologies, conserving energy besides Improved profitability & monetary benefit. If unit excels the targets, Escerts are issued which can be traded.  Scheme Pays back ; Industry can justify investment / effort since some pay back involved.  Revenue Loss as there are heavy penalties in case of non- compliance and misrepresentation.  It is very important to understand the scheme fully & grab this opportunity.  Involvement & commitment of top management is essential to plan capital outlay to deploy energy saving measures, training and to achieve targets

AMAI  AMAI have planned this Seminar for industry & especially the energy managers of DCs who are going to handle day to day work of PAT documentation & reporting, to raise their issues, if any, understand the subject better thro’ deliberations with eminent speakers invited today.  Various energy experts from BEE, Consultancies, Energy Auditors & Industry have been invited who will share their views during the day.

AMAI