Vijayawada: In a strategic move to support India’s MSMEs in adopting global energy-efficient technologies to enhance productivity and reduce costs, the Union government is preparing a comprehensive roadmap for effective implementation of the Assistance in Deploying Energy Efficient Technologies in Industries and Establishments (ADEETIE) Scheme in coordination with States. The ADEETIE scheme is implemented with Rs 1,000 crore.
The Bureau of Energy Efficiency (BEE), a statutory body under Ministry of Power, Government of India, has urged all State Designated Agencies (SDA’s) —including Andhra Pradesh State Energy Conservation Mission – to participate in a virtual interaction meeting scheduled for Monday (August 25), and share their views on the roadmap.
Highlighting the importance of the initiative, Akash Tripathi, Additional Secretary, Ministry of Power, and Director General, BEE, emphasised that States and their designated agencies must adopt focused strategies to achieve significant energy savings. He described the ADEETIE scheme as a potential ‘game changer’ for MSMEs in reducing energy consumption and improving competitiveness.
Recently launched in Panipat by Manohar Lal, Union Minister for Power, Housing & Urban Development, the ADEETIE Scheme offers end-to-end support—from technical guidance to financial incentives such as interest subvention—to help enterprises cut energy usage, lower operational costs, and boost competitiveness.
The key features of ADEETIE scheme includes, MSMEs can avail 5 percent (Micro & Small) and 3 percent (Medium) interest subvention on loans for energy-efficient technologies. Debt funding covers up to 75 percent of project costs; End-to-End Support – From awareness campaigns and energy audits to DPR preparation, project implementation, monitoring, and verification; implementation period of three years, spanning FY 2025–26 to FY 2027–28; MSMEs registered under Udyam portal and operating in 60 identified clusters across energy-intensive sectors such as Brass, Bricks, Ceramics, Chemicals, Fisheries, Food Processing, Forging, Foundry, Glass & Refractory, Leather, Paper, Pharmaceuticals, Steel Re-Rolling, and Textiles are eligible; projects costing between Rs 10 lakh and Rs 15 crore will be eligible; and projects demonstrating at least 10 percent energy-saving potential will qualify for annual interest subvention.
Briefing on the promotional and capacity-building activities related to ADEETIE, Milind Deore, Secretary, BEE, along with the Media Adviser for Southern States/UTs, noted that the scheme is designed to benefit almost all States, significantly strengthening India’s MSME ecosystem.
Adoption of energy-efficient technologies under ADEETIE will particularly benefit Andhra Pradesh, especially in the Fisheries and Glass & Refractory sectors in East and West Godavari districts. For example, energy-efficient heat pumps (Fisheries) and gas-fired pot and tank furnaces (Glass & Refractory) have demonstrated potential energy savings of 30–40 percent. Similar benefits are expected in clusters across Bhubaneswar, Kochi, Ambala, Firozabad and Chirkunda.
The ADEETIE scheme is thus poised to play a crucial role in reducing energy costs, strengthening MSMEs, and driving India’s industrial competitiveness on a global scale.
The Secretary informed that the total outlay of ADEETIE scheme is Rs 1,000 crore, out of which Rs 875 crore is allocated for Interest Subvention and Rs 75 crore for Hand holding & Implementation support and Rs 50 crore for Investment Grade Energy Audits. Ultimately BEE is anticipating the major impact of the Scheme will pave the way for Mobilization of Rs 9,000 crore in Energy Efficiency Investments.
