In India, most initiatives to increase energy efficiency in the small scale industrial units have achieved little in terms of enhanced efficiency or environmental improvements. This paper argues that (i) conceptually the perspective of these initiavitives is narrow; and (ii) their top-down approach and the associated methodology are inappropriate. Combustion-related pollution is closely linked to inefficient resource use, absence of waste management, poor work practices and housekeeping. These factors have to be addressed to prepare the ground for technological change. The paper concludes that an energy-led initiative with the scope to address these related issues is necessary. It also notes that the present top-down, technocratic approach will not be a pertinent mode of implementation of such an initiative. The participatory approach to environmental management offers greater scope for its execution. (C) 2000 Elsevier Science Ltd. All rights reserved.