Explanation:

Perform Achieve and Trade (PAT) Scheme
With the aim to make the industrial sector energy efficient, India’s Bureau of Energy Efficiency (BEE) launched its ‘Perform, Achieve and Trade’ (PAT) scheme on July 4.
The scheme has set energy efficiency targets for industries.
Those that fail to achieve targets will have to pay penalty.
PAT has been launched under the National Mission for Enhanced Energy Efficiency, one of the eight missions under the umbrella National Action Plan on Climate Change, launched in June 2008.
In its first cycle of three years, the scheme covers eight energy guzzling sectors—thermal power, aluminium, cement, fertilizer, iron and steel, pulp and paper, textiles and chlor-alkali.
Together, these sectors account for 40 per cent of India’s primary energy consumption.
PAT is a market based mechanism in which sectors are assigned efficiency targets. Industries which over-achieve will get incentives in the form of energy saving certificates.
These certificates are tradeable and can be bought by other industries which are unable to achieve their targets. These certificates will be tradeable at two energy exchanges: Indian Energy Exchange and Power Exchange India. The price of these certificates will be determined by the market.