It aims at minimum 10 per cent reduction in projected demand of conventional energy at the end of five years, to be achieved through a combination of energy efficiency measures and enhanced supply of renewable energy sources. Of this, five per cent will be from renewable energy sources.

Under the scheme, the Centre will assist the urban local governments of these two cities to prepare a Master Plan for increasing energy efficiency and renewable energy supply in the city. The plan will also include setting-up of institutional arrangements for the implementation of the master plan and for carrying out awareness generation and capacity building activities.

For this, MNRE will issue funds up to Rs 50 lakh per city, which will include up to Rs 10 lakh for preparation of the Master Plan within a year, up to Rs 10 lakh for oversight of implementation during five years; and up to Rs 10 lakh for setting up a 'Solar Cell' and it's functioning for a period of five years. The remaining amount of Rs 20 lakh is to be utilised for other promotional activities in five years.

According to the MNRE guidelines, the energy base-line – the detailed documentation of the existing energy supply and demand scenario of the city – will be prepared by the urban local governments on the basis of the consumption pattern for 2008.

It will detail the sector-wise (residential, commercial and institutional, industrial and municipal) data collection on energy consumption (electricity, petroleum products, coal and biomass). Surveys will also be conducted for understanding energy use patterns and the efficiency of use. This will help in generating a Demand Forecasting for 2013 and 2018 and help prepare sector-wise strategies involving techno-economic feasibility of different renewable energy options. The next step will be a priority listing of all potential renewable energy technology options.

Realising the importance of Stakeholders' consultation in the preparation of the master plan preparation, the MNRE has suggested two consultations (excluding the inception workshop) – one immediately after the analysis of sector-wise strategies, and one towards the end to discuss the draft master plan.

The participants can include elected representatives, local research and academic institutions, resident welfare associations, industries and corporate organisations and NGOs among others.