with 706 mills having 21 million spindles and 208,000 looms the mill sector of the cotton textile industry occupies an important position in indian economy. it is a major energy consuming sector with an annual consumption of nearly 600 million liters of furnace oil, 200 million liters of hs diesel oil, 18 million liters of lubricants, 20 million liters of kerosene and substantial quantity of parafin wax. the present annual consumption of coal in the textile industry is estimated to be more than 2 million tons. further, textile manufacture by its very nature involves a number of sequential progresses consuming electrical and thermal energy considering the magnitude of consumption of valuable energy sources there is wide scope for conserving energy in this sector. this paper throws some light on the newly developed techniques of energy conservation to serve as a basis for deliberations on various policies and strategies relevant to effective management of energy in textile mills