Perform Achieve and Trade (PAT) is a market based policy has the aim to make the industrial sector energy efficient. India’s bureau of energy efficiency (BEE) launched this scheme on 4th July, 2012. The proposed PAT scheme has definite set energy efficiency targets for industries. Those fail to achieve targets will have to pay penalty. PAT has been launched under the national mission for enhanced energy efficiency (NMEEE). This is one of the eight missions under the umbrella national action plan on climate change launched in June 2008. PAT is a regulatory mechanism used to educate and enhance energy efficiency by reducing specific energy consumption in large industries with an associated market based scheme to enhance the cost effectiveness through trading of certificates received for the saving of excess energy. This scheme tries to reduce the specific energy consumption of the designated consumers (DCs) for a three years cycle. The target setting and reduction for each DCs is based on their present levels of energy efficiency and the energy efficient DCs will have lower target of percentage reduction, as compared to lesser energy efficient DCs which will have higher targets.