AP Govt To Implement Energy & Water Efficiency Initiative Across 15 MSME Clusters

Amaravati, May 21 (KNN) Andhra Pradesh is set to roll out one of India's most comprehensive energy and water efficiency programmes targeting micro, small and medium enterprises (MSMEs), with a formal launch scheduled at the 'MSME Growth Conclave' in Vijayawada on May 25.

The initiative will be implemented in partnership with Energy Efficiency Services Limited (EESL), a central government enterprise under the Ministry of Power. The state government had earlier formalised the collaboration by signing a Memorandum of Understanding (MoU) with EESL at the CII Partnership Summit 2025.

Under the programme, structured energy and water audits will be conducted across MSME units in the state. The exercise will cover 15 MSME clusters and is expected to directly benefit more than 1,000 enterprises, reported TOI.

The audits will establish a baseline of energy consumption and operational performance at both unit and cluster levels, analysing electricity and fuel usage, production output, and utility consumption patterns.

Diagnostics, Mapping and Benchmarking

Participating MSMEs will be geo-tagged and mapped using Geographic Information System (GIS) technology to identify energy-intensive hotspots within industrial clusters. 

Cluster-specific energy intensity indicators will be developed to benchmark enterprises engaged in similar activities and prioritise high-consumption units for targeted intervention.

The diagnostic studies are expected to identify energy losses, excess water consumption, process inefficiencies, equipment retrofitting needs, and broader technology upgradation requirements.

Recommendations and Subsidy Support

Based on audit findings, detailed project reports will recommend energy-efficient machinery, improved utility management, water reuse and recycling systems, and sustainable production practices. 

MSMEs that adopt recommended technology upgrades will be eligible for subsidy support of up to 25 per cent under the state's MSME and Entrepreneur Development Policy 4.0 (MEDP 4.0).

(KNN Bureau)