With around 49% of total energy consumption, the industrial sector is the highest consumer of energy in Karnataka, according to the draft ‘Karnataka State Energy Efficiency Action Plan’, released by the Bureau of Energy Efficiency (BEE) and Karnataka Renewable Energy Development Limited (KREDL). The plan suggests a cluster wise approach for Micro, Small and Medium Enterprises (MSME) for energy conservation which might result in potential energy savings of 0.02 Millions of Tonnes of Oil Equivalent (MTOE) to 0.05 MTOE in moderate and ambitious scenarios respectively by 2031. The study has identified Bengaluru Machine Tools cluster, Belagavi Foundry cluster, Shivamogga Foundry cluster, Malur Brick cluster and Gokak Jaggery cluster as the five main MSME clusters in the State.