ADEETIE Scheme: Boosting MSME Energy Efficiency

Panipat, Jul 15 (PTI) In a bid to catalyze the adoption of energy-efficient technologies among Micro, Small, and Medium Enterprises (MSMEs), Union Minister of Power Manohar Lal Khattar on Tuesday launched the ADEETIE scheme at a national roll-out event here.

The Assistance in Deploying Energy Efficient Technologies in Industries and Establishments (ADEETIE) scheme with a budgetary outlay of Rs 1,000 crore, is an initiative by the Union Ministry of Power, and is being implemented by the Bureau of Energy Efficiency (BEE).

Speaking on the occasion, Khattar emphasized the importance of power in driving economic growth, aligned with the vision of 'Viksit Bharat' and highlighted the role of renewables, energy efficiency, and environmental conservation, especially in the MSME sector.

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

"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 catalyzing investments in cleaner, more efficient technologies," he said.

The launch of this landmark initiative marks a decisive step toward India's transition to a low-carbon economy by enabling MSMEs to upgrade to energy-efficient technologies through comprehensive financial and technical support, an official statement said.

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 projects.

On this occasion, Khattar officially launched the ADEETIE portal -- adeetie.beeindia.gov.in -- and unveiled the scheme brochure. The portal will facilitate the financing process for the beneficiaries.

Pankaj Agarwal, Secretary, Ministry of Power, highlighted the pivotal role of BEE in scaling up energy efficiency projects and highlighted the scheme's focus on widespread adoption across 14 energy-intensive sectors and 60 identified clusters in the initial phase.

The ADEETIE scheme covers 14 energy-intensive sectors: brass, bricks, ceramics, chemicals, fishery, food processing, forging, foundry, glass, leather, paper, pharma, steel re-rolling, and textiles.

A K Singh, Additional Chief Secretary (Energy), Haryana government, emphasized the need to reduce dependence on fossil fuels, particularly coal-based power generation and urged MSMEs to actively participate in the ADEETIE scheme to address their energy efficiency needs.

ADEETIE 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.

Akash Tripathi, Additional Secretary and Director General, BEE, highlighted that the scheme will offer both technical and financial handholding to MSMEs, backed by a budgetary outlay of Rs 1,000 crore, including Rs 875 crore for interest subvention, Rs 50 crore for energy audits, and Rs 75 crore for implementation support.

He stated that the scheme is expected to mobilize Rs 9,000 crore in investments, including Rs 6,750 crore of prospective lending from MSMEs.