The PAT Scheme is a regulatory instrument to reduce the specific energy consumption in energy intensive industries. PAT is a completely market-based mechanism, focussed primarily on enhancing the energy efficiency of large energy intensive sectors through accelerated adoption of efficient and low-carbon technologies. A total of six cycles of the PAT scheme have been launched till April, 2020, covering 1073 industries from 13 industrial and service sectors. These 13 sectors include: Aluminium, Cement, Fertilizer, Pulp & Paper, Thermal Power Plant, Chlor-Alkali, Iron & Steel, Textile, Railways, Petroleum Refinery, Petrochemicals, Discoms, and, Hotels (under commercial buildings).
In PAT Cycle I, the Ministry of Power issued approximately 38.25 lakh ESCerts to 309 DCs while 110 DCs were directed to purchase 14.23 lakh ESCerts for their compliance.
For PAT Cycle I, trading of approximately 13 lakh ESCerts took place, with overall business of Rs.100 crores and 96% of the DCs (buyers) met their compliance. Under the PAT Cycle I (2012-2015), the trading commenced in September 2017 and continued until January 2018. The trading sessions were held every Tuesday or on the next working day in case of the bank holidays. The trading of ESCerts can take place only at the Power Exchanges.
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