The four PSUs would promote a company, Energy Efficiency Services Ltd (EESL), with an equity base of Rs 190 crore. The companies would have equal share in EESL, he added.
With the equity base of Rs 190 crore, the company would be able to leverage a total investment of Rs 700-800 crore, he said at the Economic Editors conference. At present, the total size of energy investment market under Energy Service Companies in India stands at Rs 74,000 crore, and till now only 5% of the market has been tapped, he said.
An improvement of 20% energy efficiency can help avoid capacity addition of around 30,000 mw, which in turn can save investments worth Rs 1,20,000 crore.
EESL would promote energy efficiency projects like Bachat Lamp Yojana, Agricultural Demand Side Management and Municipal Demand Side Management.