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Rana Metal Works achieves cost savings through efficient electricity consumption

Summary of the success

A consortium of experts in the field of resource, energy and water efficiency in industrial processes, led by the German consultancy, Adelphi, visited 21 companies in Patparganj Industrial Area in Delhi to undertake rapid assessments of their production facilities. Six companies interested in increasing their resource efficiency and reducing the pollution caused by their production processes were selected for a more detailed assessment, based on the fact that the potential for the implementation of efficiency measures existed. Amongst the companies selected for the detailed assessment is Rana Metal Works. Rana Metal Works is a powder coating and laser cutting industry located in Patparganj Industrial Area in Delhi. The company was keen to have the expert group conduct a comprehensive RECP study at their site in order to identify energy and water saving potentials.

Whilst the detailing of measures is currently still ongoing, some energy savings have already been realised through the implementation of simple and low-cost measure resulting in lowered electricity costs.

Figure 1 Location of Patparganj Industrial Area in Delhi NCR; Source:

About the problem

Patparganj Industrial Estate of the Delhi State Industrial Development Corporation (DSIIDC) is situated in East Delhi and spread over an area of 134 acres. It is home to 600 medium and small-scale industries with 12 seriously polluting units whilst the rest are considered as non-polluting industries. There are 175 printing and packaging industries, 80 light machinery manufacturing units, 50 automobile units, 50 plastic product manufacturers, 40 electronic goods producers, 25 cable and wires units, 20 surgical products manufacturers, and 100 garment and home furnishing units.

In general, the companies in the estate do not have environmental management systems in place. Waste and wastewater generated are often not adequately treated, and raw materials, water and energy are consumed inefficiently further leading to avoidable waste and environmental pollution. Companies lack the technical data as well as the knowledge about Best Available Techniques in the Indian or international context. 

Actions initiated

To systematically improve the situation, Patparganj Industrial Area in Delhi was included as a project site under the “Sustainable and Environment-friendly Industrial Production (SEIP)” project of the Indo-German Development Cooperation. Jointly with DSIIDC, a public agency responsible for infrastructure in the industrial estates, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has been implementing the SEIP Project since 2016.

Under SEIP, a German consultancy Adelphi was hired to audit and assess the potential of environmental improvements in companies. On one hand, end-of-pipe solutions, i.e. an improvement in the treatment of wastewater and waste are being considered while on the other, the focus lies on increasing resource, water and energy efficiency in the companies’ processes.

Since tackling pollution at the source is generally a more economical solution, the objective is to reduce environmental impacts of industrial operations at the same time also to reduce costs of waste treatment and disposal. The approach is to target technological modifications as well as changes in techniques applied, and optimisation of manufacturing processes. The latter two usually do not require large investments, but rather entail changes in the production steps, change of input materials, or the training of workers. These measures tend to build the trust of companies in the viability of efficiency measure and lay the basis for larger interventions requiring substantial investments.

During the Rapid Assessments (RA) the industries’ resource efficiency and cleaner production performance were assessed across the categories:

  • Energy Management and Optimal Use, 
  • Water Management and Optimal Use,
  • Material Use Management,
  • Technology, Processes and Data Control,
  • Good Housekeeping and Good Maintenance, and
  • Waste Management incl. Wastewater Management.

Already the RA phase showed significant room for improvement across all six performance areas in most companies. The most prevalent issues discovered were related to insufficient monitoring of resource consumption, leakages in equipment (e.g. conveyance systems for water and air pressure), wastage of water (translating into large potentials for water recovery and reuse), and a lack of training for employees to enhance their knowledge regarding production processes as well inefficient lighting systems (e.g. using a large number of tube lights or ineffectively exploiting daylight during production hours).

Pic: Industries selected for RECP improvements in DSIIDC’s Patparganj Industrial Estate  

Efficiency improvement

Rana Metal Works wanted the expert team to improve their energy and water efficiency performance. After conducting a comprehensive RECP audit, the cause of high-value electricity bill was found to be a below average power factor, as well as heat losses from the ovens. Electricity bills and a 4-hour power logging revealed a power factor between 0.7 and 0.9. The reason for the low power factor was several broken capacitors and inadequate capacity of the capacitors bank.

The experts suggested to repair existing capacitors and to install additional capacitors to increase the capacity of the capacitor bank in order to maintain a power factor close to 1. 

Problems identified




Low power factor due to broken capacitors and too small capacity of the capacitor bank 

* Repair broken capacitors and install additional ones 

INR 40,000

* Power factor of 0.999 was achieved.

* Minimisation of excessive heating of electrical equipment.

* Reduction in electricity billing units (kVAh) 16,700 kVAh per year.

* Reduced electricity billing units (kVAh) translates to cost savings of INR 132,000 per year. 

Total investments:

INR 40,000 

Total savings:

INR 132,000 per year

Estimated payback period:

3.6 months

Economic benefits

Environmental benefits

Energy cost savings of INR 132,000  per year

Reduction of billing units by 16,700 kVAh per year

The success – The benefits

The implemented measure did not require sophisticated technology or a large investment but led to significant energy and cost savings in the plant where they were implemented.

The positive experience with improving the power factor encouraged and motivated Rana Metal Works to also repair un-insulated or damaged insulation in the plant and to optimise compressors.

“We are a sheet metal fabrication unit. We are committed to reducing our environmental footprint and achieving high product quality. RECP project helped us in identifying areas where we can reduce our wastages and optimise resource consumption. The consultants from project consortium are deeply engaged with us. They did a detailed RECP assessment to identify potentials in my factory. They submitted a report wherein they highlighted various options on energy saving, compressor optimisation, passivation process optimisation and improving powder coating process in my factory. In one of the recommendation, the consultants highlighted low Power Factor in my electricity bill which was leading to high electrical cost. We immediately got our capacitor bank optimised which resulted in monetary saving. The consultants have been very supportive of us in training and implementing recommendations We look forward to continued support from the project and consultants.”

Mr. Rajesh Rana, Owner, Rana Metal Works