Tax offices in India setting good example by implementing important energy efficiency measures

India is a major leader in the energy transition, both for investing in energy efficiency and in renewable energy. This is sending an important message to everyone. Bikash Singh writes in the Economic Times of India about an agreement signed by the Income Tax Office to have major appliances replaced by more energy efficient ones. This sends an important message throughout India.

 

Income Tax Office Guwahati signed an agreement with Energy Efficiency Services Limited to retrofit energy efficient appliances

Central Board of Direct Taxes, Ministry of Finance, Government of India, the Income Tax Office (Aaykar Bhawan), Guwahati signed an Agreement on Tuesday with Energy Efficiency Services Limited (EESL) to retrofit existing inefficient lighting, fans and air conditioners with energy efficient appliances.

This MoU was signed under the Buildings Energy Efficiency Programme (BEEP) that is being implemented by EESL, under the administration of Ministry of Power, Government of India.

Under the MoU, EESL will retrofit energy efficient appliances in the building under the Energy Service Company (ESCO) model, wherein the upfront capital cost shall be borne by EESL and the resultant savings from projects will be used to repay for EESL investments on deemed basis.

EESL will invest Rs 1.21 crore in the project, and Aaykar Bhawan shall save over Rs 35 lakh annually on electricity bills through these interventions. It will also lead to an energy savings of 3.9 lakh kWh annually through the retrofitting drive. The payback period for the project is 3.5 years, i.e., Aaykar Bhawan shall repay the amount of Rs 1.21 crore to EESL out of the savings accrued, within this period. This agreement is expected to be followed by similar collaboration for over 330 odd office buildings of the Income Tax Department across the country.

In August this year, the Department of Expenditure under Union Ministry of Finance issued a directive to take up services of EESL to assist various ministries and departments to retrofit energy efficient appliances in all their premises across the country. These retrofitting drives shall take place under the Buildings Energy Efficiency Programme. Under the programme, EESL intends to bring in investment of around Rs 1,000 crore covering more than 10,000 large government/private buildings by 2020. It is estimated that about one crore LED lights, 15 lakh energy efficient ceiling fans, and 1.5 lakh energy efficient ACs will be retrofitted by EESL in these buildings. Apart from retrofitting, EESL also aims to widen its services in areas like centralized AC system, Energy Audits, and New Generation Energy Management System in buildings.

At present, the savings through 28 completed building projects across seven states are estimated to be over 11.03 MU, which is bound to increase with each completed project.

 

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