Interview with the Director of US-AEP/India

Interview with the Director of US-AEP/India
By Kamlesh Pande

Published in Engineering Update by India’s Institute of Engineers, March 1998

This is the fifth in a series of interviews with reputed engineers. This month Kamlesh Pande interviews Mr. S. Subramaniam, Director of US-AEP/India. A graduate in engineering from the University of Pune and post-graduate in Management from Bombay University, Mr. S. Subramaniam has undergone extensive technical and management training in Japan and USA. In 1996 he received the prestigious "Energy Professional Development Award" from the Association of Energy Engineers, USA. Earlier he has been a senior level executive in various Indo-American companies. Deeply involved in energy and environmental upgradation, Mr.Subramaniam expresses his views on this most widely discussed topic.

Would you please briefly tell our readers what the United States-Asia Environmental Partnership (US-AEP) is all about.

Subramaniam: The United States-Asia Environmental Partnership (US-AEP) is an interagency program led by the United States Agency for International Development. US-AEP was established five years ago to address environmental degradation and sustainable development issues in Asia and the Pacific by mobilizing U.S. environmental experience, technology, and services. US-AEP in India has been instrumental in developing several Indo-American initiatives and assisting many government and non-government organizations in the field of environment.

Since you have led several Indian delegations to the U.S., do you think there is scope for us to get the latest technology and shorten the learning curve in order to control the environmental degradation in our country?

Subramaniam: According to the WHO, Mumbai, New Delhi & Calcutta are among the ten most polluted cities in teh world. Rapid urbanization and growing industrial output are contributing greatly to air, water and other pollution problems. Domestic pressures on environmental awareness are increasing in many states. Pollution Control Boards are beginning to aggressively enforce environmental laws. In short, there is a tremendous need for clean technologies and environmental protection in our country.

Viewed in this context, Indian companies are looking for cost-effective pollution prevention approaches. Some of the areas in which Indian frims are keen to learn are: Hazardous Waste Management, Air Pollution Control & Monitoring and Clean Manufacturing Technologies. While the larger firms are extensively collaborating with American and European firms, the smaller and medium companies have difficulties in learning about the availability and applicability of right technologies.

The United States has already faced similar kind of environmental problems that we are witnessing now in our country, and have addressed many of them effectively over the years. Arising from such experience, the United States has built up expertise over the years from pollution control to waste management to pollution prevention. Many U.S. companies that are leaders in their own specialized fields are keen to assist Indian firms. US-AEP plays a catalyst’s role in the process of linking the U.S. and Indian organizations for effective exchange of U.S. experience.

There is, therefore, a significant scope for Indian companies to source proven technology, shorten the learning curve, and help improve the environment in our country.

Energy and Environment are said to be the two sides of one coin. The view that they should be addressed/tackled together is gaining ground. What are your views, especially with reference to our country?

Subramaniam: Consumption of fossil fuels leads to environmental pollution. Its efficient usage minimizes not only the consumption, but also the pollution of environment. In addition to lowering energy costs, energy-conserving technologies also reduce the amount of pollution created either on-site or at the electric generation plant. I foresee some difficulty in quantifying the linkage between all forms of waste generation and energy due to lack of authentic data / model. However, it may be a good idea for industries to initiate "Energy-cum-Environment Audit" instead of carrying out just "Energy Audit." Such a combined audit will most likely save time and money, but will obviously require energy / environmental experts as part of the audit team.

As for Energy Conservation, the ESCO concept initially took off with great momentum but, somehow, it has not been able to sustain it. What is your assessment of the situation, particularly in the industry sector?

Subramaniam: Any new concept does not take time to grow firm roots, especially in our country, which is unique in several ways. The ESCO concept was born in the U.S. where the utilities have a keen involvement in energy efficiency and offer several incentives to the consumer to use energy efficiency and offer several incentives to the consumer to use energy efficiently. Many ESCOs in the U.S. are owned by the utilities and such ESCOs have an inherent edge over competitors as the utilities provide the first line of contact in the market place and know what the customers want better than others. In comparison, electricity boards in India have little stake in idustrial energy efficiency and most often do not have any involvement beyond the point of supplying electricity at the consumer’s premises. The legal framework for addressing commercial disputes is also different in our country. ESCOs, therefore, have a complex and difficult market to deal with in India. Under such circumstances, it is possible that some of the Indian ESCOs masquerade as "ESCOs" but in reality, take up energy efficiency projects in the conventional manner on a "price with profit" basis instead of adopting the ESCO concept of "profits from savings" actually realized through their efforts.

How effective, do you think, the proposed bill making energy audit compulsory in our country will be?

Subramaniam: Estimates indicate that India has lost over Rs. 80,000 crores during 1975-95 by way of various energy losses. In such a context, the move to make energy audit mandatory in industries is a welcome step. There are numerous industries in India which have benefitted immensely from energy audits and there is no reason why others cannot learn from their experience. However, I think that, along with the "stick" by way of compulsory energy audits, industry should be motivated by the "carrot" of incentives and recognition for efficient use of energy. The proposal will be effective if the concept of "energy audit" is marketed effectively and industries are encouraged suitably to realize the benefits arising from energy audits.