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Industrial sector is the largest consumer of fossil fuels in India. Dependence on fossil fuels also increases carbon dioxide emissions. In order to steer the industrial sector towards a more efficient use of energy resources, Government of India and Bureau of Energy Efficiency launched the Perform-Achieve-Trade scheme to improve energy efficiency of select high energy consuming industries. From each of these industries, on the basis of their energy consumption, a set of plants were selected for implementation of the scheme. PAT has multiple cycles of implementation. This paper analyses the effect of PAT Cycle-II on the energy intensity of the cement industry for a sample period of 2004-05 to 2020-21, along with the effect of other control variables like gross fixed assets, R&amp;D expenditure, imports, and FDI. Results show that in its second phase PAT has had a significant impact in reducing energy intensity of designated cement firms. The paper also estimates the amount of energy saved by the cement industry, and the fall in CO 2  emissions thereof. It has helped to achieve an energy saving of 3.964 Mtoe, and the concomitant fall in CO 2  emissions of 15.608 MtCO 2 .

Effect of Perform-Achieve-Trade Cycle-II: Study of the Indian Cement Industry