New Delhi, August 02nd, 2025: In a decisive move to address a key gap in India’s energy efficiency ecosystem, Energy Efficiency Services Limited (EESL), a JV of PSUs under Ministry of Power, has signed a Memorandum of Understanding (MoU) with the Material Recycling Association of India (MRAI) to establish a structured recycling mechanism for old electrical appliances, including motors, fans, air conditioners and lights.
The non-financial partnership is designed to solve a critical challenge faced by industries and institutions replacing old, inefficient appliances under EESL-led programs with energy efficient ones: the lack of a streamlined process for safe and compliant disposal of dated equipment.
The primary objective of this MoU, to be in effect for an initial term of 36 months, is to establish a structured mechanism for environmentally responsible disposal of old electrical appliances such as motors, fans, air conditioners and lights etc. Through this collaboration, EESL will offer its clients—including industries, institutions, and government bodies—a seamless solution for disposing of outdated equipment being replaced under its energy efficiency programs.
MRAI, leveraging its extensive network of 25000 recyclers and associate members, will facilitate the collection, handling, and safe recycling of these old appliances in full compliance with environmental and safety standards.
This partnership is expected to unlock a host of critical benefits. Most notably, it ensures complete compliance with government-mandated norms on safe and eco-conscious disposal of old stock. As outdated and inefficient systems are phased out, the initiative will significantly reduce their circulation while preventing improper handling or informal dismantling.
“This partnership marks a critical step in building a truly circular approach to energy efficiency,” said Shri Abhishek Gupta, Head (Appliances), EESL. “While our focus has long been on enabling the transition to modern, efficient technologies, this collaboration ensures that the old appliances and equipment being phased out are also managed responsibly. By aligning with MRAI’s recycling expertise, we are ensuring that clients will be directly connected to certified recyclers, eliminating the traditionally fragmented chain of intermediaries and thereby streamlining the process, saving time, and recovering greater value from old appliances.”
“Through this collaboration with EESL, we are proud to support the transition to energy-efficient technologies by ensuring that old appliances are collected, dismantled, and recycled in an environmentally sound manner. This partnership reflects our shared vision for a cleaner, more circular economy,” said Shri Amar Singh, Secretary General, MRAI.
“This MoU is a landmark step in India’s journey toward holistic energy efficiency. By ensuring that outdated appliances are responsibly recycled, EESL and MRAI are not only promoting sustainable practices but also reinforcing the principles of a circular economy that will have far-reaching environmental and societal benefits,” said Shri Sanjay Dube, President, IIEC.
The alliance between EESL and MRAI represents a significant stride toward integrating sustainability into every phase of India’s energy efficiency journey. By closing the loop from adoption to disposal, the initiative ensures long-term environmental benefits while supporting national goals on circular economy and climate action.