Power ministry to launch Rs 10 billion scheme for MSME energy efficiency

The Ministry of Power (MoP) is set to launch a Rs 10 billion scheme to support energy efficiency initiatives among small and medium businesses, aiming to incentivize adoption of energy-efficient technologies. 

Under the Bureau of Energy Efficiency’s ADEETIE scheme (Assistance in Deploying Energy Efficient Technologies in Industries & Establishments), the plan will provide interest subvention of approximately five percent for small enterprises and three percent for medium enterprises. Technologies covered include automation systems for resource utilization, combustion control for boilers, and methane capture.

With Power Finance Corporation (PFC) as the nodal agency for this scheme, interest subvention will be reimbursed monthly for loans financed by PFC and annually for other institutions. 

This initiative supports India’s net-zero target by 2070, complementing measures like the Energy Conservation (Amendment) Bill, 2022 and recent moves toward industrial electrification to reduce coal and diesel use.