Power ministry bets Rs 1,000cr on energy-smart MSMEs

New Delhi: The power ministry on Tuesday launched a ₹1,000-crore scheme to support micro, small and medium enterprises (MSMEs) in adopting energy-efficient technologies.

Under the Assistance in Deploying Energy Efficient Technologies in Industries & Establishments (ADEETIE) scheme, the government will provide an interest subvention of 5% for micro and small enterprises, and 3% for medium enterprises on loans.

The scheme is also designed to offer end-to-end handholding through investment-grade energy audits, detailed project reports, and post-implementation monitoring and verification.


It covers 14 energy-intensive sectors, including brass, bricks, ceramics, chemicals, fishery, food processing, forging, foundry, glass, leather, paper, pharma, steel re-rolling, and textiles.

ADEETIE will be rolled out in phases, beginning with 60 industrial clusters in the first phase, followed by another 100 in the second phase.

"With the right mix of incentives and support mechanisms, we are catalysing investments in cleaner, more efficient technologies," said power minister Manohar Lal.

The scheme will be implemented over three years, starting in FY26, the ministry said in a statement.

ET had earlier reported on the scheme being conceived by the ministry through the Bureau of Energy Efficiency (BEE).

Of the total outlay, ₹875 crore is allocated for interest subvention, ₹50 crore for investment-grade energy audit support, and the remainder for handholding support through BEE.

The scheme is expected to catalyse ₹9,000 crore in investments, including ₹6,750 crore in MSME lending.