In a move to bolster energy-efficient practices in the micro, small, and medium enterprise (MSME) sector, the Union Power Ministry is set to launch a new interest subvention scheme aimed at promoting advanced, eco-friendly technologies in smaller businesses.
The Assistance in Deploying Energy Efficient Technologies in Industries & Establishment (ADEETIE) Scheme will provide a 5 per cent interest subsidy for small enterprises and a 10 per cent subsidy for medium enterprises.
Overseen by the Bureau of Energy Efficiency (BEE), the ADEETIE Scheme is intended to help MSMEs adopt energy-efficient technologies. With the government recognising that upgrading technology can be expensive for smaller businesses, the scheme is intended to help reduce these costs. The scheme may offer higher interest subvention for greater energy savings and efficiency.
With an initial budget allocation of Rs 1,000 crore, ADEETIE, designed as an online platform, specifically excludes larger corporations, aiming instead to address the needs of smaller enterprises where barriers to green technology adoption have been most pronounced.
“We have prepared clear guidelines and consulted industry leaders to ensure smooth implementation without regulatory delays,” said an official familiar with the scheme’s development.
ADEETIE will enable MSMEs to deploy advanced energy-efficient technologies, including systems for combustion control in boilers, pocket ventilation, air-dyeing, and methane capture, each critical in reducing energy consumption and carbon emissions.
As energy consumption continues to rise in India, both the Power and Renewable Energy Ministries have placed strong emphasis on energy efficiency measures.
Power demand is expected to grow at a compound annual growth rate of 7 per cent over the next five years. In this context, the ADEETIE scheme, to be launched by December, highlights India’s commitment to fostering a competitive, green economy.
By reducing technology costs and offering financial support, not only will the initiative enable the MSME sector to thrive but also contribute to India’s sustainable development goals.
Eligibility Criteria
Projects that meet the following criteria may be eligible for the scheme:
- The project size is more than Rs. 10 lakh.
- The cost of energy efficiency (EE) components is more than 50% of the total project cost.
How to Avail the ADEETIE Scheme
To avail the ADEETIE scheme, you can:
- Visit the ADEETIE online platform at http://www.adeetie.beeindia.gov.in/
- Fill out the online willingness form and the technical detail form
- The Facilitation Centre will evaluate the forms and may contact you for additional information
- The Facilitation Centre will submit the forms and recommendation report to the Bureau of Energy Efficiency
- The BEE will forward the forms to financial institutions (FIs) for further processing
It’s worth noting that the availability and eligibility criteria for loan schemes may vary depending on factors such as the size and type of business, the industry in which it operates, and its financial situation. Get in touch with one of our consultants at OneNDF to find out what government loan schemes are available to you.
OneNDF is designed to support access to finance for micro, small, and medium enterprises (MSMEs) as they look to invest and grow.
