ADEETIE: Boosting Industrial Energy Efficiency in India

Context

To promote industrial energy efficiency and accelerate low-carbon growth in the MSME sector, the Union Ministry of Power launched the ADEETIE scheme at a national event in Panipat, Haryana. The scheme is a part of India’s broader effort to align industrial development with the goals of net-zero emissions and Viksit Bharat@2047.

What is ADEETIE?

• ADEETIE stands for Assistance in Deploying Energy Efficient Technologies in Industries & Establishments.

• It is a flagship scheme aimed at promoting clean and energy-efficient technologies in Indian industries, especially MSMEs.

• The scheme supports both financial assistance and technical guidance for adopting energy-efficient solutions.

Nodal Ministry & Implementing Agency

• Launched by: Union Ministry of Power

• Implemented by: Bureau of Energy Efficiency (BEE)

Budget and Duration

• Total Outlay: ₹1000 crore

• Duration: FY 2025–26 to FY 2027–28

• Allocation Breakdown:

  • ₹875 crore for interest subvention

  • ₹50 crore for energy audits

  • ₹75 crore for technical handholding and support

Core Objectives

• Improve energy efficiency (EE) in MSMEs to cut down carbon emissions.

• Provide low-cost finance and technical support for technology upgrades.

• Enhance the power-productivity ratio in industries.

• Contribute to India’s commitments for Net Zero by 2070 and the Viksit Bharat vision.

Key Features

1. Interest Subvention

• 5% subsidy for Micro and Small Enterprises

• 3% subsidy for Medium Enterprises

2. Technical Handholding

• Investment-grade energy audits (IGEA)

• DPR preparation and implementation

• Monitoring and Verification (M&V) post-installation

3. Digital Enablement

• A dedicated online portal for applications, tracking, and fund disbursement

4. Cluster-Based Implementation

• Phase I: Targeting 60 industrial clusters

• Phase II: Expansion to 100 more clusters

Expected Outcomes

• Up to 50% reduction in energy use in certain technologies

• Mobilize investments worth ₹9000 crore, including ₹6750 crore in MSME loans

• Accelerate the adoption of green technologies in high-impact sectors

Eligibility Criteria

• Registered MSMEs located in identified clusters or sectors

• Participation in energy audits and DPR approval

• Preference to:

  • Early adopters

  • Energy-intensive enterprises

Conclusion

The ADEETIE scheme reflects India’s commitment to a sustainable industrial future by addressing key challenges in energy efficiency through financial incentives and technical support. It strengthens India’s roadmap toward climate resilience, industrial competitiveness, and the net-zero transition, making it highly relevant in the context of energy security, climate action, and inclusive growth.