Research & Development is a major important activity of PCRA. The R&D activities provide strong support to PCRA’s energy conservation efforts aiming at the development of new products, processes and technologies which have the potential to contribute to energy saving, environmental quality, energy security and sustainable development. The Indian industry is highly energy intensive. About 40% of the total commercial energy production in India is consumed by the industrial sector and there is a scope of saving of 15-20% in the sector that would result in saving of about 7.5% in overall energy consumption. Hence a thrust has been given for development of energy intensive industrial clusters like Leather, Cold Storage, Foundries and Textile etc. The methodologies adopted are:

•	Identify the energy intensive industrial clusters.
•	Tie-up with engineering institutes along with the industry representatives for identifying inefficient processes and designing of prototypes for making the process efficient for the industry.
•	Promote the developed prototype for replication with the help of industry associations.
•	Promote research in various aspects of conservation in conjunction with IITs, NITs, Council of Scientific and Industrial Research (CSIR) labs etc.

Initiatives Taken:

•	Promotion of industrial projects (SMEs) where energy saving potential is high and implementation feasible on replication basis, to maximize energy saving for the nation.
•	Dissemination of research project details and its economic benefit to similar industries through seminars/workshops and Booklets/pamphlets with the help of industry associations.
•	Wide publicity/ cooperation with industry associations, IITs, Research Institutes for generation of energy efficient projects.

Sponsorship of R&D Projects:
PCRA invites Research and Development projects from prestigious Research Institutions, Technical Institutions, CSIR Laboratories, IITs, Universities, IIP, DST approved Research Institutions etc. primarily aimed at petroleum conservation and environment protection through development of fuel efficient technologies, processes, equipments, appliances etc. in different sectors of economy viz. industry, transport, agriculture and domestic.
 
Detailed information about the project proposals submitted with PCRA by various Research Institutions & project developers through filled-in standard questionnaires and information about earlier work done on the project is examined. PCRA even assists the project developers to prepare a sound project proposal.
 
The project proposals are reviewed by Screening Committee of PCRA, which is chaired by Executive Director of PCRA and has members from various reputed organizations. The project developers make detailed presentation about their project proposals to the Screening Committee of PCRA. Based on the merit of proposal, Screening Committee accord technical approval to the R&D project. The final project report is again reviewed / approved by Screening Committee of PCRA. On successful completion of R&D projects, PCRA helps in replicating the technologies, processes, equipments, appliances etc. through technology transfer to interested entrepreneurs.

PCRA has so far intervened in many areas such as Ceramic/Textile/ Foundries/Cold-storage/Leather clusters, Bio-fuel, Solar, Steel etc. and achieved very encouraging results, which have been accepted by the industry.