Senseible

What does the 1.75 times output assumption do to a CNC machine's saving and payback in a BEE report?

Both the payback and the kilowatt hour (kWh) saving in the Bureau of Energy Efficiency (BEE) Bangalore reports rest on output rising 1.75 times. Without it, five-axis payback goes from 3.01 to 5.26 years. With it, the bending machine's yearly use rises from 127,238 to 151,488 kWh even as use per tonne falls.

What the reports assume

Each report works out its saving per tonne, then multiplies by an output that is 1.75 times what the old machine made: bending from 130.5 to 228.375 tonnes a year, five-axis from 96 to 168 tonnes. The saving at today's output is smaller, and the reports tabulate it too.

Payback at today's output

Use per tonne falls, total use can rise

What a loan officer will ask

Whether you have the orders to sell 1.75 times as much, and whether the scrap and labour savings show in your accounts. A buyer who asks for emissions per part sees the fall; a target on total emissions sees the rise. Bring the flat output case as well as the report's, and say which output you assumed.

Five-axis machine, two outputs

Figures from the Bureau of Energy Efficiency (BEE) reports for the Bangalore machine tool cluster, at about 2010 prices. The flat output paybacks are the cost divided by the saving at today's output, which the reports tabulate. The 0.675 factor is from the Central Electricity Authority, an estimate.

What Senseible does here

Senseible reads electricity bills into monthly kilowatt hours (kWh). A bill shows the site's electricity, not one machine's, so a new machine appears as a change in the site total, not on its own line. Output and scrap figures come from your accounts. The green loan check shows what a lender asks for.

Sources: BEE, Detailed project report: installation of a 5-axis CNC machine, Bangalore machine tool cluster (SAMEEEKSHA), BEE, Detailed project report: CNC laser cutting machine, Bangalore machine tool cluster (SAMEEEKSHA), BEE, Detailed project report: CNC bending machine, Bangalore machine tool cluster (SAMEEEKSHA), CEA, CO2 Baseline Database for the Indian Power Sector

Last reviewed 2026-11-04. Report figures are from a Bureau of Energy Efficiency (BEE) Small and Medium Enterprises (SME) programme project report; costs and paybacks are at the report year's prices. Check today's prices and a current quote before you rely on the payback.