New push for sustainable industrial practices
ADEETIE Scheme for Greener MSMEs: The Government of India has launched the ADEETIE Scheme – Assistance in Deploying Energy Efficient Technologies in Industries & Establishments – with the aim of accelerating the shift toward energy efficiency in Micro, Small, and Medium Enterprises (MSMEs). The scheme will promote technology adoption, reduce energy use, and improve productivity across energy-intensive sectors.
Scheme details and coverage
The scheme is implemented by the Bureau of Energy Efficiency (BEE) under the Ministry of Power. It will be operational for three years from FY 2025–26 to FY 2027–28, with a total budgetary outlay of ₹1000 crore. Only MSMEs registered with Udyam ID are eligible.
Entities must show a minimum of 10% energy savings to qualify for benefits. The scheme targets 14 high-energy-use sectors like Brass, Bricks, Ceramics, Chemicals, Food Processing, and Fisheries.
Static GK fact: MSMEs contribute nearly 30% to India’s GDP and form the backbone of industrial employment and exports.
Implementation in phases
ADEETIE will be rolled out in two phases. The first phase will cover 60 industrial clusters, followed by 100 additional clusters in the second phase. This phased approach ensures resource optimization and localized implementation.
The scheme also supports the creation of green energy corridors, which are essential for integrating renewable energy sources with existing industrial infrastructure.
Financial incentives to support transition
A key feature of the scheme is interest subvention on loans. Micro and small enterprises are eligible for a 5% interest subsidy, while medium enterprises will receive 3%.
In addition, enterprises will receive help in conducting Investment Grade Energy Audits and Detailed Project Reports (DPRs) to identify optimal energy-saving technologies.
Technical and digital support to MSMEs
The scheme offers technical handholding throughout the project life cycle—from energy audit to technology deployment.
It builds upon other BEE initiatives like:
- BEE–SME Program: Aims to raise awareness and improve energy efficiency among MSMEs.
- National Programme on Energy Efficiency and Technology Upgradation of MSMEs: Supports adoption of new technologies.
- SIDHIEE Portal: A digital platform offering data and tools on energy efficiency for MSMEs.
Static GK Tip: The Energy Conservation Act, 2001, provides the legislative backing for BEE and India’s broader efforts in promoting energy conservation.
Alignment with national energy goals
By promoting efficient power use, ADEETIE aligns with India’s Nationally Determined Contributions (NDCs) under the Paris Agreement. The scheme also complements the country’s Net Zero by 2070 target.
Static Usthadian Current Affairs Table
ADEETIE Scheme for Greener MSMEs:
| Fact | Detail |
| Scheme Name | ADEETIE – Assistance in Deploying Energy Efficient Technologies in Industries & Establishments |
| Ministry | Ministry of Power |
| Implementing Agency | Bureau of Energy Efficiency (BEE) |
| Budget Outlay | ₹1000 crore |
| Duration | FY 2025–26 to FY 2027–28 |
| Eligibility | MSMEs with Udyam ID showing 10% energy savings |
| Interest Subvention | 5% for Micro/Small, 3% for Medium enterprises |
| Target Sectors | 14 energy-intensive sectors including Brass, Ceramics, Chemicals |
| Rollout Phases | 60 clusters in phase one, 100 more in phase two |
| Supporting Initiatives | SIDHIEE, BEE–SME Program, Energy Efficiency Upgradation for MSMEs |
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