Power Ministry Unveils Rs 1,000 Cr Push for Energy-Smart MSMEs

In a significant initiative to support energy efficiency while lowering energy costs, India's Power Ministry has launched a Rs 1,000 crore scheme to drive transformation of the micro, small, and medium enterprise (MSME) sector with the goal of transitioning these MSMEs into energy-smart units.

The scheme, called ADEETIE (Assistance in Deploying Energy Efficient Technologies in Industries & Establishments), will be implemented over a three-year period, focusing on some of the most energy-intensive sectors across the country. 

The Rs 875 crore scheme provides MSMEs with the ability to use loans with the helpful 5% subsidy interest to micro and small units and 3% subsidies to medium units. The remaining fund will provide technical and impletative support through the Bureau of Energy Efficiency and an additional Rs 50 crore will be allocated to conduct energy audits.

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The program starts with 60 industrial clusters in Phase 1, with 100 more to come. In total, there are 14 key sectors, including textiles, food processing, chemicals, forging, foundry, ceramics, and others. The scheme provides end-to-end support from audits through to implementation, helping MSMEs reduce their operational costs, enhance productivity, and achieve clean energy targets.

Expected to mobilise a total investment of Rs 9,000 crore includingRs 6,750 crores in MSME loans, ADEETIE is much more than simply a subsidy; it is part of a process to provide energy resilience and sustainable growth for India's industrial ecosystem. The growing global competition and volatility in energy prices means that this programme can provide Indian MSMEs with a valuable advantage in all aspects of efficiency and economics.