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Vijayawada, February 20, 2025 In a significant move to enhance energy efficiency in Micro, Small, and Medium Enterprises (MSMEs), the Government of India has announced the launch of a new initiative, the Assistance for Development of Energy Efficient Technologies in Industrial Establishments (ADEETIE) scheme. Spearheaded by the Bureau of Energy Efficiency (BEE) under the Ministry of Power, the scheme aims to facilitate the adoption of advanced energy-efficient technologies through targeted financial incentives.
A Game-Changer for MSMEs
With a focus on sustainability and global competitiveness, ADEETIE will provide financial support, including investment-grade energy audits, technology implementation assistance, and interest subvention on loans. This initiative is expected to benefit over 8,000 MSMEs nationwide, easing their transition to cutting-edge energy-saving technologies while reducing financial strain.
During the inaugural session of the BEE-Indo-German Energy Partnership National Summit held in Vijayawada, Milind Deora, Secretary, BEE, underscored the importance of states like Andhra Pradesh in driving energy efficiency reforms. He highlighted the scheme’s role in reducing operational costs, cutting carbon emissions, and aligning MSMEs with India’s climate commitments.
Targeted Sectors and Implementation Plan
The scheme will be rolled out in a phased manner, focusing initially on energy-intensive clusters across key sectors such as foundry, pharmaceuticals, textiles, paper, and fisheries, particularly in Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Kerala. ADEETIE aims to support MSMEs from the initial audit stage to the final implementation and monitoring of energy-efficient technologies.
Key components of the scheme include:
Interest Subvention: 5% for micro & small enterprises, 3% for medium enterprises adopting energy-efficient technologies.
End-to-End Support: Assistance from energy audits to final technology implementation.
Dedicated Project Management Unit: ensuring smooth execution and resolving MSME challenges.
Sector Focus: Targeting industries including brass, bricks, ceramics, chemicals, fisheries, food processing, forging, foundry, glass & refractory, leather, paper, pharmaceuticals, steel rerolling, and textiles.
India’s Climate Goals and Economic Impact
The initiative aligns with India’s revised Nationally Determined Contribution (NDC) under the Paris Agreement, aiming to reduce emission intensity by 45% from 2005 levels by 2030 and achieve net zero emissions by 2070.
BEE’s analysis of energy efficiency measures in 2024 revealed:
Annual electrical savings: 321.39 billion units.
Total energy savings: 53.60 million metric tons of oil equivalent (TOE).
CO₂ emission reduction: 321.06 million metric tons.
Annual cost savings: ₹2,00,212.84 crore.
Emission intensity reduction: 36% by 2020 (as per BUR 4 report).
Government and Industry Collaboration
Addressing stakeholders during a recent webinar, Pankaj Agarwal, Secretary, Ministry of Power, emphasized ADEETIE’s role in tackling MSME challenges and unlocking their energy efficiency potential. Milind Deora reinforced the initiative’s holistic approach, noting that beyond financial aid, it will empower MSMEs to compete globally.
The summit also saw participation from Abhishek Sharma, Director (BEE), and senior officials from the power sector. They expressed gratitude to Andhra Pradesh Chief Secretary K. Vijayanand and CEO SECM Kumar Reddy for their support in organizing the event.
As India advances toward a more sustainable industrial future, ADEETIE is poised to become a cornerstone in the nation’s energy efficiency and economic growth strategy.
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