Launch of ADEETIE Scheme in India

Summary of the ADEETIE Scheme Launch

On a significant day for India's industrial energy efficiency, Union Minister for Power and Housing & Urban Affairs, Shri Manohar Lal, launched the Assistance in Deploying Energy Efficient Technologies in Industries & Establishments (ADEETIE) scheme on March 1, 2002. This initiative, budgeted at ₹1000 crore, aims to promote the adoption of energy-efficient technologies among Micro, Small, and Medium Enterprises (MSMEs) across the country. The event took place at Arya (P.G.) College, Panipat, Haryana, signaling a vital move towards India's low-carbon economy.

Key Details of the ADEETIE Scheme:

• Objective: The ADEETIE scheme seeks to provide financial and technical support to MSMEs for upgrading to energy-efficient technologies, fostering a sustainable industrial ecosystem.

• Funding: The total budget for the ADEETIE scheme amounts to ₹1000 crore, which includes:

  • ₹875 crore designated for interest subvention.
  • ₹50 crore allocated for Investment Grade Energy Audits.
  • ₹75 crore set aside for implementation support via the Bureau of Energy Efficiency (BEE).

• Interest Subvention:

  • Micro and Small Enterprises: 5% interest subvention on loans.
  • Medium Enterprises: 3% interest subvention on loans.

• Support Services Provided:

  • End-to-end technical assistance, including funding for Investment Grade Energy Audits (IGEA), Detailed Project Reports (DPRs), and post-implementation Monitoring and Verification (M&V).

• Target Sectors: The scheme focuses on 14 energy-intensive sectors such as:

  • Brass, Bricks, Ceramics, Chemicals, Fishery, Food Processing, Forging, Foundry, Glass, Leather, Paper, Pharma, Steel Re-rolling, and Textiles.

• Phased Roll-out Plan:

  • The first phase will cover 60 industrial clusters, with a second phase planned for an additional 100 clusters.
  • Implementation period extends from FY 2025-26 to FY 2027-28.

• Expected Outcomes: The ADEETIE scheme is anticipated to mobilize investments worth ₹9000 crore, including projected MSME lending of ₹6750 crore, contributing significantly to India's efforts in enhancing energy efficiency and reducing carbon emissions.

Remarks from Officials:

• Shri Manohar Lal, during his address, underscored the transformative nature of the ADEETIE scheme in making Indian industries competitively aligned with global sustainability standards. He emphasized the necessity of reducing India's carbon footprint and meeting international climate obligations.

• Shri Pankaj Agarwal, Secretary of the Ministry of Power, highlighted the central role of the BEE in mainstreaming energy efficiency and urged for a conducive policy and financing framework supporting MSMEs.

• Shri A.K. Singh, Additional Chief Secretary (Energy), Government of Haryana, called for reduced reliance on fossil fuels, urging MSMEs to engage with the ADEETIE initiative.

• Shri Akash Tripathi, Additional Secretary & Director General of BEE, reiterated the economic rationale behind energy efficiency, linking it to enhanced productivity and decreased emissions amid India's export-oriented industrial strategy.

Administration and Background:

• The Bureau of Energy Efficiency (BEE), established under the Energy Conservation Act, 2001, plays a pivotal role in the execution of this scheme, designed to regulate and promote energy conservation principles in India’s industrial framework.

Conclusion:

The ADEETIE scheme represents a landmark initiative in India's energy efficiency mission aimed at empowering MSMEs through cleaner technologies. With comprehensive support mechanisms set in place, the program endeavors to elevate productivity while contributing significantly toward a greener industrial landscape.

Important Points:

• Launch of ADEETIE Scheme by Union Minister Shri Manohar Lal.
• Total budget of ₹1000 crore for the scheme.
• 5% interest subvention for Micro and Small Enterprises; 3% for Medium Enterprises.
• Comprehensive support including energy audits and project reports.
• Focus on 14 energy-intensive sectors with phased implementation.
• Expected mobilization of ₹9000 crore in investments.
• BEE's crucial role in the implementation and oversight of the scheme.