The Union power ministry is likely to launch an interest subvention scheme for the micro, small, and medium enterprises (MSMEs) to help them deploy and promote energy-efficient technologies in businesses, according to sources.
An interest subsidy of 5% to the small entities and 10% to the medium businesses will be rolled out under the scheme, the sources said.
The proposed scheme is expected to provide financial assistance to industries under the Assistance in Deploying Energy Efficient Technologies in Industries & Establishment (ADEETIE) Scheme for adoption of energy efficient technologies.
“ADEETIE is one scheme which is going to be launched with an allocation of Rs 1,000 crore,” the official said. “We have removed the major large companies out of its ambit. Guidelines have been prepared and we have asked to share it with the industry so that there are no hiccups in the implementation.”
ADEETIE scheme is an online facilitation platform managed by the Bureau of Energy Efficiency aimed at encouraging and promoting financing for energy efficiency technologies.
The move comes amid the government’s focus on bringing down the cost of energy- efficiency technologies and practices which usually comes at a higher price. Some of such technologies include combustion control systems for boilers, pocket ventilation systems, air-dyeing technology, methane capture technology and others. The Bureau of Energy Efficiency had time and again said that to make India energy efficient and for sustainable development, it is important that the MSME sector adopt the green and efficient manufacturing processes.
Amid the rising demand for power in the country, energy efficient technologies seek significance as these are often linked with energy savings. The peak demand for power this year touched 250 gigawatt (GW) in May against 243 GW registered last year. The Central Electricity Authority has now projected the country’s power demand to grow at a compound annual growth rate of 7% in the next five years on account of rising economic activity and setting up of new industries.
The discussions of an interest subvention scheme for the MSME sector has been held for sometime now. With the accelerated efforts, the scheme is now expected to be rolled out by December.
The government had earlier said that the latest technologies are necessary for the countries to progress and to compete in the global market noting that there is a need to manufacture good technology at low cost.