# Belgaum foundries are on the ADEETIE list: what saving and records does an energy loan need?

Canonical: https://senseible.earth/answers/belgaum-foundry-cluster-adeetie-energy-loan

The project must save at least 10% energy, proven by an investment grade audit from an empanelled auditor, and you need a bank loan for it. In Belgaum, where 90% of castings come from induction furnaces, replacing a furnace using 750 kWh a tonne or more with one near 550 usually clears 10% on its own.

## The cluster in TERI's 2016 profile

- About 160 MSME foundries, plus one large foundry, casting about 1,250 tonnes a day, roughly 360,000 tonnes a year.
- Mostly grey iron for auto parts, pumps, valves, gears and machine tools; about 25 units pour SG iron and about 30 steel.
- By size: 10 units at 600 to 700 tonnes a month, 20 at 300 to 400, 60 at 100 to 150 and 70 below 100.
- Energy in 2014 to 15: 356 million kWh and 6,300 t of coke, 34,436 toe. Electricity alone is about 240,000 t CO2 a year on today's grid factor.

## Upgrades with the saving to qualify

- New induction furnace: from 750 kWh or more per tonne of molten metal down to about 550, a cut of over 25% in melting power.
- Divided blast cupola in place of a conventional cupola: pays back in about a year on coke alone.
- Smaller fixes, such as a furnace lid (4 to 6% of heat input), compressor VFDs and IE3 motors, rarely reach 10% alone. Bundle them with a bigger item.

## Records to have ready before the auditor comes

1. Twelve months of HESCOM bills, with the furnace on its own meter if you can fit one.
2. Coke purchase invoices by month, if you run a cupola.
3. Tonnes melted and tonnes of good castings each month, from your melting log and dispatch register.
4. Rejection rate by month. Belgaum units run 6 to 9% against an achievable figure under 5%, and rejects inflate kWh per good tonne.
5. Furnace nameplate, age and the quotation for the new one with its guaranteed kWh per tonne.
6. Udyam registration and the bank's in-principle sanction.

## Worked example: a 100 tonne a month foundry replacing an old induction furnace

- Good castings 1,200 t a year; metal melted 1,440 t (1.2 t per good tonne)
- Old furnace: 1,440 t x 800 kWh = 1,152,000 kWh; other plant load 300,000 kWh; total 1,452,000 kWh
- New furnace: 1,440 t x 550 kWh = 792,000 kWh
- Saving: 360,000 kWh, about 25% of the unit's power, well over the 10% bar
- CO2 saved: 360,000 x 0.675 kg = 243 t a year; at the profile's Rs 7 per kWh, about Rs 25 lakh a year

Melt ratio, old furnace figure and other load are examples; use your own meter readings. Rs 7 per kWh is the 2015 to 16 price in TERI's profile; use your current tariff.

## What Senseible does here

Senseible reads your HESCOM bills and coke invoices into monthly kWh, coke and CO2, each traced to its bill. Set those against the tonnes in your melting log and you have the per-tonne baseline an energy auditor and the bank ask for first.

- [MSME green loan schemes](https://senseible.earth/msme-green-loan-schemes)
- [ADEETIE application steps](https://senseible.earth/answers/adeetie-application-steps)
- [Finance readiness for a furnace upgrade](https://senseible.earth/answers/green-loan-induction-furnace-upgrade-readiness)
- [Belagavi castings: buyer data](https://senseible.earth/answers/belagavi-foundry-export-castings-buyer-data)

Sources: [TERI, Cluster profile: Belgaum foundries (SAMEEEKSHA, 2016; data 2014 to 15)](https://sameeeksha.org/pdf/clusterprofile/Belgaum_Foundries_Karnataka.pdf), [SAMEEEKSHA, Belgaum foundry cluster summary](https://sameeeksha.org/index.php?option=com_content&view=article&id=172&Itemid=502), [BEE, ADEETIE scheme booklet (clusters, technologies, process, FAQs)](https://beeindia.gov.in/WriteReadData/RTF1984/1772790517.pdf), [CEA CO2 Baseline Database, version 22.0](https://cea.nic.in/cdm-co2-baseline-view?mappingId=234&lang=en)

Last reviewed 2026-10-30. TERI data is from 2014 to 15. Recheck ADEETIE terms and the cluster list before each application season.