India Considers Financial Support For Energy-Efficient Technologies In MSMEs

New Delhi, Jul 6 (KNN) The Indian government is contemplating a new initiative to assist businesses, particularly micro, small, and medium enterprises (MSMEs), in adopting energy-efficient technologies.

According to sources familiar with the matter, the Power Ministry has initiated discussions on offering interest subvention under the Assistance in Deploying Energy Efficient Technologies in Industries & Establishment (ADEETIE) Scheme, reported ET.

The ADEETIE Scheme, overseen by the Bureau of Energy Efficiency, is an online platform designed to encourage and scale up energy efficiency financing.

This move comes as the government recognises the financial challenges MSMEs face in upgrading their technology, with funding for such improvements often proving costly for smaller enterprises.

The proposed scheme is expected to be structured to provide higher interest subvention for greater efficiency and energy savings.

Technologies that could be supported include automation and control systems for improved resource utilisation, combustion control systems for boilers, pocket ventilation systems, air-dyeing technology, and methane capture technology, among others.

Sources indicate that the allocation for interest subvention could reach approximately Rs 2,000 crore, potentially implemented in phases.

The initial phase might involve Rs 1,000 crore, with subsequent tranches dependent on the program's reception.

This initiative aligns with the government's broader goals of promoting energy efficiency and sustainable development within the MSME sector.

The Bureau of Energy Efficiency has previously emphasised the importance of MSMEs adopting green and efficient manufacturing processes for India's overall energy efficiency.

The proposal, which has been under consideration for some time, is seen as a strategic move to support MSMEs in adopting new technologies.

Once these technologies achieve scale, the financial support may be gradually withdrawn.

As energy consumption continues to rise in India, both the Power and Renewable Energy Ministries have placed a strong emphasis on energy efficiency measures.

The government's focus on providing financial support to MSMEs and other establishments for this purpose appears to be gaining traction.

(KNN Bureau)