The Union Ministry of Power, through the Bureau of Energy Efficiency, launched the ADEETIE scheme. This initiative aims to enhance industrial competitiveness, promote job creation, and achieve climate objectives by promoting the adoption of energy-efficient technologies in industries and establishments across the country. For UPSC GS Paper IIl paper.
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The Union Ministry of Power launched the ADEETIE (Assistance in Deploying Energy Efficient Technologies in Industries & Establishments) scheme through its Bureau of Energy Efficiency (BEE).
Bureau of Energy Efficiency (BEE)
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Boost Industrial Competitiveness => When businesses use less energy, their operating costs go down. This makes their products or services more affordable and competitive in the market.
Create Jobs => As MSMEs adopt new technologies, they need people to install, maintain, or operate these systems, creating new job opportunities.
Achieve Climate Goals => Using less energy means burning fewer fossil fuels, which reduces the amount of harmful greenhouse gases released into the atmosphere. This scheme directly helps India meet its environmental commitments, such as reducing carbon emissions and fighting climate change.
Reduce Energy Consumption => It can help MSMEs reduce their energy consumption by 30–50%, also improves the "power-to-product ratio"; less energy to produce each item.
Support Green Energy Corridors => Establish areas or systems where clean, efficient energy practices are widespread, supporting a greener economy.
This initiative focuses entirely on the Micro, Small, and Medium Enterprises (MSME) sector.
MSMEs form the backbone of India's economy, contributing about 30% of its GDP and accounting for about 45% of total exports.
The scheme will run for three years (2025-26 to FY 2027-28).
It covers 14 energy-intensive sectors. In the initial phase, it will focus on 60 identified industrial clusters, with an additional 100 clusters in the second phase
Experts will assess a business's energy use, and suggest how to implement the energy-efficient technologies, including costs and expected savings.
MSMEs can get financial help in the form of interest subvention on loans; the government pays a part of the interest on their loans.
The ADEETIE portal was launched to streamline the financing process for MSMEs and facilitate access to scheme benefits.
FAQ Q. Who is launching the ADEETIE scheme? The Union Ministry of Power, through the Bureau of Energy Efficiency (BEE) launched the ADEETIE scheme. Q. What is the objective of the ADEETIE scheme? The ADEETIE scheme aims to accelerate the adoption of energy-efficient technologies in the Micro, Small, and Medium Enterprises (MSME) sector. Q. What specific financial incentives does the ADEETIE scheme offer? The ADEETIE scheme provides interest subvention on loans: 5% for Micro & Small Enterprises and 3% for Medium Enterprises, making energy efficiency upgrades more affordable. |
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