Low-cost clean energy and efficiency solutions ranging from rooftop solar and electric furnaces to motor optimisation and power-factor correction can significantly reduce energy costs and emissions in MSME micro-clusters in West Bengal, finds a new study presented in Kolkata on Friday. The findings were shared at a multi-stakeholder consultation, marking the beginning of focused discussions on MSME energy transition in select micro-clusters.
The study ‘Energy Assessment of MSME Micro-Clusters in West Bengal’, conducted jointly by Indian Institute of Social Welfare & Business Management (IISWBM) and Asar Social Impact Advisors, examines four sub-sectors – silver filigree, engineering, galvanising and wire drawing – across 15 representative micro-enterprises. The assessment maps energy use, cost burdens and emission hotspots in energy-intensive clusters in Howrah and South 24 Parganas, while identifying practical and financially viable decarbonisation pathways.
The findings of this assessment reinforce the need for documentation and evidence-based support to MSMEs. She emphasised on the need for registration of the units, which will ensure inclusivity of the MSME units and the families running such units. Energy efficiency and cleaner technologies are no longer optional for competitiveness, and cluster-based approaches allow us to address these challenges in a structured and practical way”, said Dr Mou Sen, Joint Director of MSME.
Speaking at the report launch, Dr. Krishna Murari Agrawal, Director IISWBM, said, “This study shows that MSME decarbonisation does not have to be expensive or disruptive. Even small, practical changes can cut costs, reduce emissions, and improve working conditions—especially in energy-intensive micro-clusters.”
The findings reveal a heavy dependence on fossil fuels, outdated furnace designs, under-loaded motors, and absence of systemic energy monitoring across clusters – factors attributed to increasing operating costs and much avoidable emissions.
The recommended interventions include:
- Motor Optimisation through power factor corrections and load
- RoofTop Solar Integration: to offset grid electricity
Are these Solutions ‘Cost-Effective’?
“For micro-enterprises, energy decisions are ultimately about survival and competitiveness. This assessment shows that clean energy adoption is not a long-term ideal, but a practical, low-cost pathway to reduce expenses, improve working conditions and remain competitive” said Kankana Das, State Program Lead. “ With the right guidance and support, MSME micro-clusters can become powerful entry points for India’s low-carbon industrial future” she further added.
A key highlight of the study is the Magrahat silver filigree (jewelry making) cluster, where improved operational practices and efficient use of existing electric furnaces and machinery can significantly reduce energy consumption and electricity costs. These interventions can also improve occupational health and safety while preserving livelihoods rooted in a centuries-old craft tradition.
The assessment also highlights that the recommended investments do not place an additional financial burden on already stressed clusters. The assessment also finds that most recommended investments are financially viable, with short payback periods.
