00:00 Thank you for tuning in to NDTV Profit.
00:10 I am Vikas Shrivastava.
00:11 Today we have with us Vishal Kapoor, the CEO of Energy Efficiency Services Limited, a central
00:18 government entity that is working or helping India achieve its net zero targets through
00:23 its sustainable energy products.
00:24 Today Mr. Kapoor will be talking to us about the existing products and projects as well
00:30 as their futuristic plans.
00:32 Welcome to NDTV Profit, Mr. Kapoor.
00:35 Thank you Vikas.
00:36 Thank you for having me on your show.
00:37 Yeah, my pleasure.
00:39 Sir just wanted to start with asking a question on like when we talk about carbon emissions
00:45 or when we talk about sustainability goals, we have seen that there are these hard to
00:50 abate sectors like you know steel, cement and long haul transport vehicles, shipping
00:55 sector etc. which have been the major contributors to pollution emissions.
01:01 In comparison when we talk about EESL products and projects, can you help our audience understand
01:07 in terms of reducing emissions compared to other projects that government is running
01:13 how much these products and projects will contribute in terms of reducing the emissions
01:18 and also if you can talk about the potential that exists for these products and projects
01:22 of EESL.
01:24 Vikas, if you see the best bang for the buck in emissions reduction lies in two specific
01:32 areas.
01:34 One is the industrial sector and the other one is the domestic retail sector.
01:38 Out of all the sectors, you also mentioned transportation and I will come to that.
01:43 So retail space, I was reading a report recently wherein it said that almost around 45% of
01:53 the energy consumption actually goes into appliances sector across the world and India
02:00 is upwardly mobile, appliance uptake is on the high and definitely I mean if the world
02:06 is consuming almost 40 to 45% on appliances only as opposed to the whole transportation
02:14 sector that is consuming 21% of the energy.
02:19 I think a lot of potential lies in the retail sector and that's why we are increasing our
02:27 footprint in the retail sector using various strategies like coming with energy efficiency
02:35 marketplace which will be a one-stop shop only for energy efficient appliances.
02:40 In any case, we are doing that for institutional customers in bulk deals as well.
02:45 But as a company beyond this retail segment where a lot of latent potential exists, we
02:54 are also working in a big way to electrify the public transport.
02:59 You might be aware that electric buses, our subsidiary in the ESL group called CESL is
03:09 actually aggregating demand.
03:10 We have already done almost 12,000 buses and we are also currently underway with the PME
03:18 Seba electric bus bids.
03:21 So in overall situation in so far as the transportation sector as well as in the retail sector, we
03:29 are going big on both these sectors.
03:33 Apart from that, industry I mentioned is another big latent potential area.
03:40 We believe that in big companies and big industries, basically energy efficiency is also cost efficiency
03:48 and therefore a lot of work is already being done by them under the PACT scheme and other
03:54 such measures.
03:55 But the real latent potential lies in the MSME sector and we are tying up with SIDBI
04:04 under the tutelage of the Ministry of Small and Medium Enterprises and we are coming out
04:12 with a revolving fund to fund basic energy efficient projects in almost around 36 technologies.
04:20 So this is about our immediate priorities.
04:25 What is the kind of potential exist for these products that you spoke about and also briefly
04:31 we can talk about this fund that you are talking.
04:35 Yeah, so I mentioned to you the potential, I talked about 40 to 45% of the energy across
04:44 the world is being consumed by appliances and this is not all the appliances, these
04:51 are only 20 major appliances that includes air conditioning, it also includes industrial
04:57 motors.
04:58 So if you do the breakdown of this, 15% out of this whole thing is for the retail appliances,
05:08 almost similar amount lies for the appliances that are used in the industrial sector, predominantly
05:15 motors.
05:16 So motors consume 15% of the energy across the world and if you compare it with the entire
05:25 transportation sector, it is 21%.
05:28 So you can imagine how much these basic appliances are taking.
05:34 So and 10% goes into the commercial segment space.
05:39 So basically the real energy efficiency lies in this particular thing.
05:46 In so far as India is concerned, we believe and there are some estimates that suggest
05:50 that an investment of almost around 8 lakh crores is required for the next 7-8 years
05:57 if we want to attack the basic energy efficiency domain in the field of this energy conservation.
06:11 Beyond that you mentioned about this fund, this fund we are setting up along with the
06:19 SIDB, it is a revolving fund and this fund basically will be used to provide loans to
06:27 MSMEs against specialized 36 technologies and the money will keep on coming back into
06:35 this fund so that it becomes a revolving fund and a self-sustainable fund.
06:39 We are looking at this fund, we will be starting with about an amount of almost 100 to 150
06:48 crores at the outset and we will look at how we can expand it further.
06:53 Okay, okay.
06:54 Now we all are aware about your, the revolutionary products like LED and street light projects
07:02 that you all started.
07:04 Can you give a brief status about these projects as of now and what is the kind of futuristic
07:11 projects that you have in pipeline for the consumers?
07:15 Yes, under Ujjwala, I mean we germinated LED bulbs, socialized them across the country.
07:23 We did ourselves almost around 37 crore bulbs across the country and now you know it's a
07:29 market that has developed.
07:30 So we believe that what we have done so far has been able to germinate a big and a huge
07:38 market and which is self-sustaining and we did it on a market model rather than through
07:45 subsidies and ultimately I mean anything that operates through market models actually
07:52 goes ahead on its own.
07:54 Similarly, the street lights, we have done almost around 1.3 crore street lights and
07:59 which light up almost 65% of the Indian roads today.
08:05 Going forward, you asked about what are the next big things.
08:10 We believe that a humble fan that is there in every single household is one of the major
08:18 equipment that require energy efficiency and I'll explain it briefly.
08:23 A normal fan consumes almost around 75 to 78 watts of electricity.
08:30 It runs almost around 18 hours a day on an average across 8 to 10 months across the length
08:37 and breadth of the country.
08:38 BLDC fans are available today at 28 watts.
08:45 Five star fans are available less than 35 watts.
08:48 Now, if you are able to socialize that you can only imagine what kind of improvements
08:53 that can take place.
08:55 Another thing that we are looking at is electric motors.
09:00 The market penetration of I3 level motors is currently around only 20 to 25%.
09:07 We believe that there is a huge potential in going towards these self-sustaining models
09:15 of changing motors across various industrial establishments.
09:22 And then we are also going ahead with another level that is I4 level of motors.
09:27 This I believe is going to give a big impetus to energy efficiency.
09:32 Apart from that, super efficient air conditioners is again something that we are wanting to
09:40 socialize across the market.
09:42 We are all aware that five star air conditioners are available, but these super efficient air
09:49 conditioners, even though five star, they are much higher of much higher ISER ratings
09:55 than the normal five star air conditioners.
09:59 So now, if these air conditioners are put across banks and ATMs and various other establishments
10:06 and also in residential areas, a huge potential exists and I think these equipment, these
10:14 five star ACs as compared to three star AC will be able to recover the additional investment
10:21 in two to three years' time and even lesser in ATMs where the functioning is almost 24
10:27 hours.
10:28 So, with that point, I would like to end the show.
10:30 Sir, thank you very much for talking to NDTV Profit.
10:33 It was our pleasure.
10:34 Thank you.
10:35 Thank you, Vikas.
10:36 [Music]
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