The Ministry of Power (MoP) has launched a new program, Assistance in Deploying Energy-Efficient Technologies in Industries & Establishments (ADEETIE), aimed at enhancing energy efficiency in micro, small, and medium enterprises (MSMEs).

The Bureau of Energy Efficiency (BEE) is the implementing agency for this program, which has an outlay of ₹10 billion (~$116.28 million). It will be implemented over a three-year period from the financial years 2025-26 to 2027-28.

Under ADEETIE, financial support will be extended in the form of interest subvention, with 5% for micro and small enterprises and 3% for medium enterprises.

Out of the total budget, ₹8.75 billion (~$101.74 million) has been earmarked for interest subvention, ₹500 million (~$5.81 million) for conducting Investment Grade Energy Audits (IGEA), and ₹750 million (~$8.72 million) for implementation and handholding support.

The government expects to mobilize investments worth ₹90 billion (~$1.046 billion) through the program, including ₹67.5 billion (~$784.88 million) in prospective lending to MSMEs.

The program will provide end-to-end technical support, including investment-grade energy audits, preparation of detailed project reports, technology identification, and post-implementation monitoring and verification.

It will be implemented in two phases, starting with 60 industrial clusters in the first phase and extending to 100 more in the second. Fourteen energy-intensive sectors — brass, bricks, ceramics, chemicals, fisheries, food processing, forging, foundries, glass, leather, paper, pharmaceuticals, steel re-rolling, and textiles – are included under the program.

In 2023, the Ministry of Power established a new platform called Advanced Industrial Technology Demonstration Center for industry stakeholders to demonstrate and exchange knowledge on new energy-efficient technologies in the country.

While India has made significant strides in renewable energy, Indian businesses have been slow in adopting energy efficiency solutions in their operations. In an interview, Manya Ranjan, Co-Founder, Two Point O Capital, attributed this to a lack of awareness, fragmented ecosystem, and absence of flexible financing options.