The Ministry of Power is likely to launch a Rs 10 billion scheme next month aimed at encouraging micro, small, and medium enterprises (MSMEs) to adopt energy-efficient technologies by offering financial support in the form of interest subvention, a senior power ministry official aware of the development said.

The proposed scheme, named Assistance in Deploying Energy Efficient Technologies in Industries & Establishment (ADEETIE), will be managed by the Bureau of Energy Efficiency (BEE) and aims to help MSMEs reduce energy costs and emissions.

“The ADEETIE scheme is expected to be launched with an allocation of Rs 1,000 crore,” an official said, adding that large companies have been excluded from the program’s scope. “Guidelines have been prepared and will be shared with the industry to ensure smooth implementation.”

Under the scheme, MSMEs will receive an interest subsidy of 5% for small enterprises and 3% for medium enterprises on loans taken to implement energy-efficient technologies. The initiative comes as part of India's commitment to meet its net-zero emissions target by 2070, with the government pushing for lower energy costs and emissions in the industrial sector.

Technologies likely to be supported under this scheme include automation systems, combustion control systems for boilers, methane capture, and air-dyeing technology. The scheme also includes provisions for capacity building, with BEE providing assistance through its ADEETIE online platform, designed to facilitate financing for energy-efficient projects in the MSME sector.

The initiative is aligned with recent legislative steps, including the Energy Conservation (Amendment) Bill, 2022, passed by Parliament last December, which mandates the use of clean energy and enables the establishment of carbon markets.

The MSME sector, contributing 40% of India’s industrial output and exports and approximately 37.54% to the GDP, is a key focus for the government in achieving energy savings. The ADEETIE scheme, expected to launch by December, reflects the government’s intent to lower the costs of advanced energy-efficient technologies and support MSMEs in reducing their carbon footprint, enhancing competitiveness in the global market.