New Delhi, July 27 - The government is planning to set up a new company to oversee and implement energy efficiency schemes and reduce transmission losses.

The company, Energy Efficiency Services Ltd (EESL), will be a joint venture with equity participation of 25 percent each from its promoters - NTPC, PowerGrid Corp, Rural Electrification Corp and Power Finance Corp, Minister of State for Power Bharatsinh Solanki told parliament Monday.

The government hopes this would help in effective implementation of energy efficiency schemes, he said.

'A consolidated business plan has been prepared taking into account the role of EESL, which indicates the economic viability of the company based on schemes and with a projected internal rate of return (IRR) of 22 percent.'

It will, therefore, act as an energy service company and as a resource centre for training and capacity building of utilities and other stakeholders, Solanki added.