The scheme has envisaged interest subvention of 5 per cent for micro and small enterprises and 3 per cent for medium enterprises on loans to enable accessibility and affordability for MSMEs seeking financial aid for energy efficiency projects.
The eligible MSMEs are required to have Udyam registration and must demonstrate 10 per cent energy savings of the implemented technologies. (Source: twitter)
Power Minister Manohar Lal Khattar on Tuesday launched the Assistance in Deploying Energy Efficient Technologies in Industries and Establishments (ADEETIE) scheme to help MSMEs with financial and technical support for implementing energy-efficient solutions that can help them save at least 10 per cent of energy.
The scheme offers support through interest subvention on loans, Investment Grade Energy Audits (IGEA), Detailed Project Reports (DPRs), and post-implementation Monitoring and Verification (M&V). The scheme has envisaged interest subvention of 5 per cent for micro and small enterprises and 3 per cent for medium enterprises on loans to enable accessibility and affordability for MSMEs seeking financial aid for energy efficiency projects.
https://x.com/mlkhattar/status/1945061595111153896
The scheme is applicable for three years from the financial year 2025-26 and 2027-28 for MSMEs across 60 clusters spanning 14 sectors, including brass, ceramics, fisheries, food processing, forging, foundry, leather, paper, pharma, textile, and more.
The new scheme assumes significance for MSMEs, which face rising operational costs and tight margins. By adopting energy-efficient technologies, MSMEs are expected to significantly reduce electricity expenses, improve competitiveness, and enhance productivity.
Efficient energy use may also cut their dependence on unreliable power sources and help India meet its national sustainability goals by lowering carbon emissions and resource consumption.
The eligible MSMEs are required to have Udyam registration and must demonstrate 10 per cent energy savings of the implemented technologies.
With a budgetary outlay of Rs 1,000 crore, the ADEETIE is an initiative by the Union Ministry of Power and is being implemented by the Bureau of Energy Efficiency (BEE), according to a PTI report.
Also read: MSME Credit Touches Rs 83 Lakh Crore in FY25 Amid Asset Quality Gains: Report
Speaking on the scheme’s launch, Khattar said that 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.
Moreover, Akash Tripathi, Additional Secretary and Director General, BEE noted that the budgetary outlay of Rs 1,000 crore will include Rs 875 crore for interest subvention, Rs 50 crore for energy audits, and Rs 75 crore for implementation support.
The scheme is likely to mobilise Rs 9,000 crore in investments, including Rs 6,750 crore of prospective lending from MSMEs, he said.
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