Has the Centre Launched a Rs 1,000 Crore Scheme to Assist MSMEs in Transitioning to Energy-Efficient Technologies?
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Synopsis
The Indian government has unveiled a transformative Rs 1,000 crore scheme aimed at empowering MSMEs to adopt energy-efficient technologies. This initiative promises significant financial and technical support, with the potential to catalyze Rs 9,000 crore in investments across various sectors. Discover how this scheme can revolutionize the MSME landscape and contribute to sustainability.
Key Takeaways
- Rs 1,000 crore allocated for energy efficiency support.
- Focus on 14 energy-intensive sectors.
- Expected to catalyze Rs 9,000 crore in investments.
- Interest subvention of 5% for micro/small enterprises.
- Implementation over three years.
New Delhi, July 15 (NationPress) The Centre has introduced a groundbreaking Rs 1,000 crore initiative aimed at assisting micro, small, and medium enterprises (MSMEs) in transitioning to energy-efficient technologies through extensive financial and technical support.
The Assistance in Deploying Energy Efficient Technologies in Industries and Establishments (ADEETIE) was launched by Power Minister Manohar Lal in Panipat, Haryana, as stated in a ministry announcement.
“ADEETIE signifies a revolutionary effort to empower Indian industries, particularly MSMEs, to achieve global competitiveness by embracing sustainability. By offering a strategic blend of incentives and support mechanisms, we are fostering investments in cleaner and more efficient technologies,” the minister remarked.
The ADEETIE initiative will be managed by the Bureau of Energy Efficiency (BEE) and will encompass 14 energy-intensive sectors. The rollout will be phased, starting with 60 industrial clusters in the first phase, followed by an additional 100 clusters in the second phase.
Spanning three years from FY 2025-26 to FY 2027-28, the scheme allows for gradual implementation, adjustments, and scaling based on preliminary results.
The overall funding of Rs 1,000 crore includes Rs 875 crore allocated for interest subvention, Rs 50 crore for Investment Grade Energy Audit support, and Rs 75 crore for guidance support through BEE.
This scheme is expected to generate Rs 9,000 crore in investments, which includes Rs 6,750 crore in MSME loans.
It aims to provide a 5 per cent interest subvention for micro and small enterprises, and 3 per cent for medium enterprises on loans, ensuring that MSMEs can access affordable financial assistance for energy efficiency projects.
During his address, Manohar Lal underscored the critical role of power in stimulating economic growth, aligning with the vision of Viksit Bharat, and emphasized the importance of renewables, energy efficiency, and environmental sustainability, particularly for the MSME sector.
The minister noted that the technologies included in the ADEETIE scheme could enable MSMEs to decrease energy consumption by 30–50 per cent, enhance the power-to-product ratio, and aid in the establishment of green energy corridors.
He also highlighted the essential role of industrial energy efficiency in mitigating India’s carbon footprint and fulfilling international climate commitments.
Pankaj Agarwal, Secretary of the Ministry of Power, emphasized BEE's crucial function in expanding energy efficiency initiatives and integrating them within India’s industrial framework.
Agarwal reiterated the scheme’s emphasis on broad adoption across 14 energy-intensive sectors and the 60 identified clusters in the initial phase.
He also pointed out the necessity for a supportive policy and financing environment to empower MSMEs as vital actors in climate action.
Point of View
The launch of the ADEETIE initiative marks a crucial step towards enhancing the sustainability and competitiveness of India’s MSME sector. The government's commitment to supporting these enterprises with substantial financial backing and technical guidance showcases a forward-thinking strategy. This approach not only addresses energy efficiency but also positions MSMEs as pivotal players in meeting national climate objectives, reinforcing the need for a supportive ecosystem that fosters innovation and growth.
NationPress
16/07/2025
Frequently Asked Questions
What is the ADEETIE scheme?
The ADEETIE scheme is a government initiative that provides financial and technical support to MSMEs for upgrading to energy-efficient technologies.
How much funding is allocated to the ADEETIE scheme?
The total funding for the ADEETIE scheme is Rs 1,000 crore.
Which sectors are covered by the ADEETIE scheme?
The scheme covers 14 energy-intensive sectors.
What types of financial support does the scheme offer?
The scheme offers interest subvention of 5% for micro and small enterprises and 3% for medium enterprises on loans.
What is the expected investment catalyzed by the scheme?
The ADEETIE scheme is expected to catalyze investments amounting to Rs 9,000 crore.
