Energy efficiency initiative scheme aims to turn into game-changer for MSMEs

The Government of India is drawing up a comprehensive roadmap for effective implementation of the ADEETIE (Assistance in Deploying Energy Efficient Technologies in Industries & Establishments) Scheme in coordination with States to become a game-changer for the MSMEs by popularising globally-acclaimed energy efficiency technologies.

The scheme launched by the Ministry of Power at Panipat sometime ago is a Rs.1,000 crore initiative. It offers interest subversion of 5% yo Micro and Small Enterprises and 3% to Medium Enterprises for taking up energy efficiency projects.

The Bureau of Energy Efficiency (BEE), a statutory body under the Ministry of Power, has urged all State Designated Agencies (SDA’s) —including Andhra

Pradesh State Energy Conservation Mission to participate in a virtual interaction meeting scheduled for Monday and share their views on the roadmap.

Highlighting the importance of the initiative, Akash Tripathi, Additional Secretary, Ministry

of Power, and Director General, BEE, emphasised that States and their designated agencies

must adopt focused strategies to achieve significant energy savings.

He described the ADEETIE

scheme as a potential “game changer” for MSMEs in reducing energy consumption and

improving competitiveness.

ADEETIE Scheme offers

end-to-end support from awareness campaigns and energy audits to DPR preparation,

project implementation, monitoring, and verification.

The implementation period is three years, spanning FY 2025–26 to FY 2027–28. MSMEs registered under the Udyam portal and operating in 60 identified clusters

across energy-intensive sectors such as brass, bricks, ceramics, chemicals, fisheries, food

Processing, forging, foundry, glass & refractory, leather, paper, pharmaceuticals, steel re-rolling, and textiles.

Projects costing between ₹10 lakh and ₹15 crore will be eligible.

Briefing on the promotional and capacity-building activities related to ADEETIE, Milind

Deore, Secretary, BEE, along with the Media Adviser for Southern States/UTs, A. Chandra Sekhar Reddy noted that the

scheme is designed to benefit almost all States, significantly strengthening India’s MSME

ecosystem.

The Secretary, informed that the total outlay of ADEETIE scheme is Rs.1000 crore, out of which Rs.875 crore is allocated for interest subvention and Rs.75 crore for handholding & implementation support

and Rs.50 crore for investment grade energy audits.

Ultimately BEE is anticipating the major impact of the scheme will pave the way for

mobilisation of Rs.9,000 crore in energy efficiency investments.