Sufficiency of energy is one of the most important inputs for economic growth of any economy. For the development of any of the indicators of an economy-industry, transportation, agriculture, service sector, households, economy on energy supply and access to it has over the past years threatened the environment and widespread climatic change has become a matter of grave concern for the world community, primarily because of the fact that most of these generated energy were not from environmentally friendly sources. The global community is thus faced with the challenge of achieving economic development in this liberalised era on one hand, while dealing with the threat of climatic deterioration on the other. For meeting this global challenge, we have to first obtain the energy required for the growth of economy, with its global competitiveness and secondly, delivering and using the energy thus produced in an effective and efficient manner. But in many of the developing economies, generation of energy from environmentally friendly energy sources is not cost effective till date and for this efficient utilisation of energy and its conservation has evolved as a viable cost effective option for mitigating the gap between the demand and supply of energy. Among the growing economies, the Indian economy has emerged as one of the leading consumers of energy and its consumption of energy has increased four fold between the year 1971 and 2005 and presently it ranks fifth in terms primary energy consumption only after the United States, China, Russia and Japan. This is inspite of the fact that the per capita energy consumption in India is one of the lowest in the world