Centre unveils Rs 1,000 crore scheme to help MSMEs upgrade to energy-efficient tech

New Delhi, July 15 The Centre on Tuesday launched a new Rs 1,000 crore scheme to enable micro, small and medium enterprises (MSMEs) upgrade to energy-efficient technologies through comprehensive financial and technical support.

The Assistance in Deploying Energy Efficient Technologies in Industries and Establishments (ADEETIE) was officially launched by Power Minister Manohar Lal in Panipat, Haryana, according to a ministry statement.

“ADEETIE is a transformative movement to empower Indian industries, especially MSMEs, to become globally competitive through sustainability. With the right mix of incentives and support mechanisms, we are catalysing investments in cleaner, more efficient technologies,” said the minister.

The ADEETIE scheme is being implemented by the Bureau of Energy Efficiency (BEE). The scheme covers 14 energy-intensive sectors. It will follow a phased roll-out, beginning with 60 industrial clusters in the first phase, followed by an additional 100 clusters in the second phase.

The scheme will be implemented over three years, spanning FY 2025-26 to FY 2027-28, allowing for progressive deployment, course correction, and scaling based on early outcomes.

The total outlay of Rs 1,000 crore comprises Rs 875 crore for interest subvention, Rs 50 crore for Investment Grade Energy Audit support and Rs 75 crore for handholding support through BEE.

The scheme is expected to catalyse Rs 9,000 crore in investments, including Rs 6,750 crore of MSME lending.

The scheme envisages to provide interest subvention of 5 per cent for micro and small enterprises, and 3 per cent for medium enterprises on loans, ensuring accessibility and affordability for MSMEs seeking financial aid for energy efficiency (EE) projects.

In his address, Manohar Lal emphasised the importance of power in driving economic growth, aligned with the vision of Viksit Bharat, highlighting the role of renewables, energy efficiency, and environmental conservation, especially in the MSME sector.

The minister noted various technologies featured in the ADEETIE scheme can help MSMEs reduce energy consumption by 30–50 per cent, improve the power-to-product ratio, and support the creation of green energy corridors.

He also underscored the significance of industrial energy efficiency in reducing India’s carbon footprint and achieving its international climate commitments.

Pankaj Agarwal, Secretary, Ministry of Power, highlighted the pivotal role of BEE in scaling up energy efficiency projects and mainstreaming them across India’s industrial ecosystem.

He highlighted the scheme’s focus on widespread adoption across 14 energy-intensive sectors and 60 identified clusters in the initial phase.

Agarwal also stressed the need for a supportive policy and financing framework to empower MSMEs as key drivers of climate action.

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