By the end of the current financial year, GEDA will do “walk through” energy audit in 1,000 SMEs. The rest will be done in the next financial year. The Agency will have its own set of auditors for the work and will charge a nominal amount.

"We have come up with the energy audit scheme where the SMEs can register with us. We will just walk through and check the status of machines and the power consumption, and then sit with the company officials to suggest changes. This can help in conservation of energy and bring in more efficiency," said V H Buch, director, GEDA.

The industrial sector consumes over 35 per cent of the energy used in Gujarat, including thermal and electrical, with SMEs form a major part of the total consumption. The consumption by SMEs also constitutes a significant portion of the total manufacturing cost.

"To help SMEs sustain, it is very important that they cut down on the cost of energy. Reduction in energy consumption through efficiency improvement in SMEs will enhance their profitability," he added.

The audit will not only check the energy consumption, but also the equipment being used by the SMEs.

The major consumption of energy is in the SMEs related to the cement industry, iron re-rolling, pharma and pulp manufacturing. The SMEs that consume less than 200 KV of energy will be covered under the scheme. Those above it

have to go for a compulsory auditing.