India is considering providing support to businesses, including micro, small, and medium enterprises (MSMEs), to facilitate the deployment of energy-efficient technologies, according to sources informed about the development.  The Ministry of Power has started discussions on offering interest subvention under the ADEETIE Scheme to encourage the adoption of energy-efficient technologies, sources said.  

The Bureau of Energy Efficiency's ADEETIE scheme serves as an online facilitation centre aimed at promoting and scaling up energy efficiency financing.  For MSMEs, funding for technological upgrades is typically expensive. This interest subvention could alleviate some of the financial burdens, making it more feasible for these enterprises to invest in energy-efficient technologies.

"To make India energy efficient and achieve sustainable development, it is crucial for the MSME sector to adopt green and efficient manufacturing processes," the Bureau of Energy Efficiency stated earlier. The government aims to reduce the costs associated with these new technologies to encourage their adoption within the sector, despite their initial expense.  The scheme is expected to be structured to provide higher interest subvention for technologies that offer greater efficiency and energy savings.  

Some of these technologies could include automation and control systems for optimal resource utilisation and loss reduction, combustion control systems for boilers, pocket ventilation systems, air-dyeing technology, and methane capture technology, among others.  The allocation for interest subvention is likely to be around Rs 20 billion, according to an official source.

 "The scheme could be implemented in phases, with an initial allocation of Rs 10 billion. Based on the response, another tranche may follow. This is still under discussion," one source revealed.  MSMEs require support to adopt new technologies, and once these technologies are scaled up, the financial support can be withdrawn, another source added. The energy-efficient technologies may be tied to specific energy-saving thresholds.

Energy efficiency has been a priority for both the power and renewable energy ministries in response to the country's increasing consumption.  The proposal to offer financial support to MSMEs and other establishments has been under consideration for some time and appears to be nearing finalisation, according to sources.

(Source: ET)