Recognising the importance and benefits of energy efficiency, the government of India enacted the 2001 Energy Conservation Act, which went into effect 1 March 2002. The project was designed to support marketing, implementation and enforcement of the Indian Energy Conservation Act at the state and local level. As a result, it improved energy efficiency and lowered energy intensity nationwide.
The Energy Conservation Action Teams (ECAT), consisting of professionals from state and local agencies, were established in five Indian states. They prepared market oriented three-year action plans that were institutionalised by designated state agencies involved in energy efficiency and/or renewable energy. Moreover, annual operational plans were prepared, defining deliverables as well as local, state and central government investments necessary to achieve quantified and validated targets. This was supported by energy sector reforms and the reduction of greenhouse gas emissions.