India spent $1bn 2022-23 on importing cooling device components
The growing cooling sector in India provides a US$1.6 trillion investment opportunity and an expanded domestic manufacturing base will play a key role to tap this opportunity, according to Auguste Tano Kouame, Country Director for India, World Bank.
“Cooling is an important adaptation challenge for India’s large population, and, at the same time, it is important for climate mitigation for the world at large,” he told a workshop organized by the World Bank in alliance with the Department for Promotion of Industry and Internal Trade (DPIIT).
The consultation workshop, held 18 Dec, was theme “Alleviating Heat stress by Enhancing production of Affordable cooling Devices (AHEAD)”.
Increased global warming, growing Indian economy, increased purchase power is likely to increase growth in overall cooling demand by 10 times in next two decades, according to speakers at the workshop.
The cooling interventions have the opportunity to save 4.5% of GDP, i.e., nearly US$329 billion which could be at risk by 2030 due to heat waves, the Finance Ministry said on the DPIIT-World Bank workshop.
“The current cold chain for agriculture produce is only 4% of the requirement and increasing the cold chain can help preserve more agriculture produce.
“In addition, space cooling solutions will increase labour productivity and also reduce spoilage of temperature sensitive medicines.”
At present India spends nearly a US$1 billion in 2022-23 of foreign exchange on importing cooling device components. Given the fact that India is poised to grow by over 10 times in the next two decades, it is in India’s interest to produce them locally and perhaps move on to become a global hub for producing cooling devices.
A key focus was on overcoming domestic manufacturing challenges and exploring innovative policy and financing strategies,
“The aim is to meet the growing demand for cooling technology and position India as a Global Manufacturing Hub. Adopting global good practices can help India to make them in India. Carrying out Research & Development and producing to derive higher quality and performing cooling devices can give edge to India being a global hub for cooling devices,”
The workshop also highlighted the potential for catalyzing investments and generating green jobs in the cooling sector.
DPIIT Secretary R.K. Singh noted the cross-cutting nature of cooling. He indicated that the Ministry will lead in taking forward the workshop outcomes with the World Bank Group and other stakeholders to formulate a tangible program for implementation.
The main highlights from the cold chain panel discussion are: Cold chain is an important link in ensuring the food and health security of the country, cold chain consumes more energy than space cooling.
Multiple challenges impacting the adoption of newer and sustainable technologies that are available as high capex requirements and upfront capital for cold chain infrastructure makes it difficult to breakeven for around 15 years, Lack of appropriate standards on technology and operations and Lack of adequate demand from end consumers and value chain players.
The Bureau of Energy Efficiency (BEE) DG Abhay Bakre emphasized on the need for replacing older (more than 8 years) Air Conditioners with modern and efficient (5 Star rated) cooling systems.
“This should ensure substantial reduction in CO2 emission by 2030-31. He also emphasized on promotion of Cold Chain technologies which is primarily product specific as well as promoting the concept of District cooling System,” he said.
He called for appropriate policy support could be designed based on aggregation of demand, scaling up of production and finding technology solutions. Fiinews.com
