Pilot study across three foundries identifies energy conservation measures that could transform over 300 manufacturing units into India's first green MSME cluster while improving competitiveness.
20 Sep 2025 | 7314 Views | By Sarthak Mahajan
The Kolhapur Foundry Cluster has initiated a comprehensive decarbonisation program aimed at transforming over 300 foundry units into one of India's leading green manufacturing hubs. The initiative was launched following the release of a detailed report outlining practical pathways for reducing carbon emissions across the cluster.
The report, titled ...
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The Kolhapur Foundry Cluster has initiated a comprehensive decarbonisation program aimed at transforming over 300 foundry units into one of India's leading green manufacturing hubs. The initiative was launched following the release of a detailed report outlining practical pathways for reducing carbon emissions across the cluster.
The report, titled "Forging a greener future together: Decarbonising Kolhapur's foundries one step at a time," was presented by Asar Social Impact Advisors and launched by District Collector Amol Yedge during a stakeholder meeting on Friday. The study identified 11 targeted energy conservation measures that could deliver up to 30% overall energy savings while improving operational margins.
The Kolhapur cluster produces approximately 600,000 tonnes of castings annually, serving automotive, agriculture, and heavy machinery sectors. With nearly 30% of production exported to Europe, Southeast Asia, and the Middle East, meeting evolving sustainability standards has become critical for maintaining market access, particularly with the European Union's Carbon Border Adjustment Mechanism now in effect.
A pilot study conducted across three foundries — Ramkrishna Foundry Pvt Ltd, Mahalaxmi Ferro Cast Pvt Ltd, and Kohinoor Metallics — evaluated feasible decarbonisation pathways at the unit level. The assessment revealed that several energy conservation measures require no upfront investment and can deliver equipment-specific energy savings ranging from 9% to 45%.
The study also found that technology upgrades, including high-efficiency motors, advanced air compressors, and digital monitoring systems, provide attractive returns on investment with most achieving payback periods of less than two years.
"These findings form the technical foundation of the decarbonisation model and demonstrate how MSME foundries can transition to cleaner operations through practical, step-by-step interventions," said Vishwajeet Poojary, Lead (State Climate Action) at Asar and one of the report's authors.
The initiative follows a three-step approach: conducting detailed energy and carbon audits to establish baselines, designing customised roadmaps for participating foundries, and providing technical implementation support to ensure effective adoption of recommended measures.
P. Shyam Sunder, Director of the Bureau of Energy Efficiency, indicated that the Kolhapur cluster could potentially participate in the ADEETIE scheme, which provides financial assistance for adopting energy-efficient technologies across industrial clusters.
The decarbonisation effort builds on recent developments in the region, including the launch of Maharashtra's first Energy Management Centre in Kolhapur, which enables approximately 400 foundry units to reduce energy consumption and production costs by nearly 30%.
The collaborative involved multiple stakeholders including the Decarbonisation India Alliance, IIM Nagpur, the Institute of Indian Foundrymen Kolhapur Chapter, and the Kolhapur Foundry and Engineering Cluster's Centre of Excellence, bringing together decision-makers, financers, industry experts, and solution providers.
Dr. Suhas Buddhe from IIM Nagpur's Centre of Excellence for Corporate Governance emphasized the broader implications, noting that secondary steel markets will be impacted by carbon border adjustments and that MSMEs have significant opportunities for technology upgradation and innovation.
The initiative represents a significant step toward positioning Kolhapur's foundries to meet global compliance standards while strengthening their position in international supply chains as buyers increasingly prioritize low-carbon manufacturing processes.