Ministry of Power Launches INR 1,000 Cr ADEETIE Scheme to Boost Energy Efficiency in MSME Sector
The Ministry of Power has launched the INR 1,000-crore ADEETIE scheme to help MSMEs adopt energy-efficient technologies through interest subvention, energy audits, project implementation support, and a dedicated portal. It aims to cut energy use by 30–50 percent in MSMEs across 14 energy-intensive sectors and 60 identified clusters in the initial phase.
July 17, 2025. By Mrinmoy Dey
The ADEETIE scheme, with a budgetary outlay of INR 1,000 crore, is being implemented by the Bureau of Energy Efficiency (BEE). The Scheme is structured to provide end-to-end hand holding through subvention on loans, Investment Grade Energy Audits (IGEA), Detailed Project Reports (DPRs), and post-implementation Monitoring and Verification (M&V).
“The scheme envisages to provide interest subvention of 5 percent for Micro and Small Enterprises, and 3 percent for Medium Enterprises on loans, ensuring accessibility and affordability for MSMEs seeking financial aid for energy efficiency (EE) projects,” shared the Ministry of Power in a statement.
Minister of Power and Housing and Urban Affairs, Manohar Lal officially launched the ADEETIE portal (adeetie.beeindia.gov.in) and unveiled the Scheme brochure. The portal will facilitate the financing process for the beneficiaries.
In his keynote address, he emphasized the importance of power in driving economic growth, aligned with the vision of Viksit Bharat. He highlighted the role of renewables, energy efficiency, and environmental conservation, especially in the MSME sector. The Minister noted various technologies featured in the ADEETIE scheme can help MSMEs reduce energy consumption by 30–50 percent, improve the power-to-product ratio, and support the creation of green energy corridors.
Lal said, “ADEETIE is a transformative movement to empower Indian industries, especially MSMEs, to become globally competitive through sustainability. With the right mix of incentives and support mechanisms, we are catalysing investments in cleaner, more efficient technologies.”
The Minister also underscored the significance of industrial energy efficiency in reducing India’s carbon footprint and achieving its international climate commitments.
Pankaj Agarwal, Secretary, Ministry of Power, highlighted the pivotal role of BEE in scaling up energy efficiency projects and mainstreaming them across India’s industrial ecosystem. He highlighted the scheme’s focus on widespread adoption across 14 energy-intensive sectors and 60 identified clusters in the initial phase. He also stressed the need for a supportive policy and financing framework to empower MSMEs as key drivers of climate action.
A.K. Singh, Additional Chief Secretary (Energy), Government of Haryana, emphasised the need to reduce dependence on fossil fuels, particularly coal-based power generation. He urged MSMEs to actively participate in the ADEETIE scheme to address their energy efficiency needs and transition toward cleaner, more sustainable energy solutions.
Akash Tripathi, Additional Secretary and Director General, BEE, highlighted that the scheme will offer both technical and financial handholding to MSMEs, backed by a budgetary outlay of INR 1,000 crore, including INR 875 crore for interest subvention, INR 50 crore for energy audits, and INR 75 crore for implementation support.
He stated that the scheme is expected to mobilise INR 9,000 crore in investments, including INR 6,750 crore of prospective lending from MSMEs. Emphasising the importance of competitiveness, he noted that as India focuses on export-oriented industries, energy efficiency must be central to that growth – both to enhance productivity and reduce emissions.
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