Khattar Launches ₹1,000 Crore ADEETIE Scheme for MSMEs

The Government of India has launched a national-level initiative called the Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments (ADEETIE) to boost energy efficiency, particularly in Micro, Small, and Medium Enterprises (MSMEs). The scheme was unveiled by Union Minister Manohar Lal Khattar and is backed by the Ministry of Power and implemented through the Bureau of Energy Efficiency (BEE) with a budget of ₹1,000 crore.

Background

India’s industrial sector is a major energy consumer, especially among MSMEs, which often lack access to capital and modern technologies. To address this, ADEETIE aims to integrate energy-efficient practices by providing both financial and technical support. It aligns with India’s broader goals of achieving a low-carbon economy and sustainable industrial growth.

Significance

The ADEETIE scheme is a significant step in improving the power-to-product ratio and fostering green energy corridors. It encourages MSMEs to adopt advanced technologies that can lead to 30–50% energy savings, reducing overall energy consumption and operational costs while supporting India’s climate commitments.

Objectives

• Promote deployment of energy-efficient technologies in industrial units
• Provide financial incentives and subsidies to MSMEs
• Strengthen the technical capacity of MSMEs for sustainable operations
• Enable monitoring and verification (M&V) for long-term impact tracking

Key Features

1. ₹1,000 crore total budget, with:
2. ₹875 crore for interest subvention
3. ₹50 crore for energy audits
4. ₹75 crore for implementation support
5. Interest subsidy: 5% for Micro & Small Enterprises, 3% for Medium Enterprises
6. Phase-wise implementation covering 14 energy-intensive sectors and 60 industrial clusters
7. Includes support for Investment Grade Energy Audit (IGEA) and Detailed Project Reports (DPRs)

Impact

The scheme will enhance the competitiveness of MSMEs, lower their energy bills, and improve production efficiency. It is expected to catalyze widespread adoption of clean technologies, leading to reduced carbon emissions and a stronger push toward sustainable development in India’s industrial sector.