Under the PAT scheme, an energy audit is done to verify the baseline energy consumption of a specific industry to assess the current level of efficiency, and, thereafter, individual targets are given to industrial units. These reduction targets in specific energy consumption are assigned to these large energy-intensive industries, known as designated industries, for a three-year cycle. The targets are decided based on their current levels of efficiency of the industrial units. 

The industries that consume more energy per unit production, are given targets higher than their energy efficient counterparts. This promotes overall energy savings, as companies strive to surpass their own performance rather than competing with each other. 

PAT Cycle II was notified from April 1, 2016 for a period of 3 years i.e. upto 2018-19. The overall energy consumption reduction target under PAT II given to 621 units is 8.869 Million Tonnes of Oil Equivalent (MTOE) in which 11 sectors are covered.  This includes the 8 sectors of PAT I and 3 new sectors viz railways, DISCOMS and petroleum refineries. 

PAT III was notified with effect from April 1, 2017 for a period of 3 years. 116 new units have been included and given a reduction target of 1.06 MTOE.

The PAT Scheme is now being implemented as a rolling cycle, i.e. new units will be notified for a period of 3 years every year. Thus, there will be no gap in notifying new units, as was the case between PAT I and PAT II.

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