Centre launches ADEETIE scheme to boost MSME energy efficiency

The Ministry of Power has launched the Assistance in Deploying Energy Efficient Technologies in Industries & Establishments (ADEETIE) scheme with a total outlay of Rs 1000 crore. 

ADEETIE aims to accelerate India’s transition to a low-carbon economy by supporting Micro, Small, and Medium Enterprises (MSMEs) in adopting energy-efficient technologies. The scheme is being implemented by the Bureau of Energy Efficiency (BEE) and will offer both financial and technical assistance across key industrial clusters.

Under the scheme, MSMEs will receive interest subvention of 5 per cent for Micro and Small Enterprises and 3 per cent for Medium Enterprises on loans taken for energy efficiency projects. ADEETIE also includes support for investment-grade energy audits, preparation of detailed project reports (DPRs), and post-implementation monitoring and verification. The ADEETIE portal was also launched to streamline applications and project tracking.

The scheme covers 14 energy-intensive sectors, including textiles, ceramics, foundry, paper, pharma, steel re-rolling, and food processing. It will be deployed in two phases, starting with 60 industrial clusters, followed by another 100 clusters. The implementation period is from FY 2025-26 to FY 2027-28.

Out of the Rs 1000 crore budget, Rs 875 crore has been earmarked for interest subvention, Rs 50 crore for energy audits, and Rs 75 crore for implementation support. The government expects ADEETIE to mobilise Rs 9000 crore in total investments, including Rs 6750 crore from prospective MSME loans.

Speaking at the launch, Union Minister of Power Shri Manohar Lal stressed that the scheme would help MSMEs reduce energy consumption by 30 to 50 per cent and improve their competitiveness.