MSME Ministry Promotes Energy Efficiency and Green Practices in MSME Sector

**Executive Summary** The Ministry of Micro, Small & Medium Enterprises (MSME) is implementing initiatives to promote energy efficiency and green practices within the MSME sector. These programs aim to provide technical expertise, financial support, and consultancy services to MSMEs transitioning to sustainable operations, with specific financial support and subsidies available for technology upgrades and the adoption of circular economy practices. **Key Points / Main Content** * **Support for Greener Practices:** The MSME Ministry is actively supporting MSMEs in adopting greener practices through various schemes. * **Financial and Consultancy Support:** * Up to Rs. 2 lakhs per unit is available for consultancy support for all ZED certified MSMEs. * Rs. 3 lakhs financial support is provided for technology upgradation. * **MSE-GIFT Scheme:** This scheme offers affordable finance to Micro and Small Enterprises (MSEs) by providing a 2% interest subvention for adopting green or energy-efficient technologies. * **MSE-SPICE Scheme:** This scheme provides a 25% capital subsidy for Micro and Small Enterprises that adopt circular economy practices. * **ADEETIE Scheme (Bureau of Energy Efficiency):** * Implemented by the Bureau of Energy Efficiency (BEE), Ministry of Power. * Aims to assist MSMEs in deploying energy-efficient technologies. * Offers 3-5% interest subvention. * Provides technical support, including audits and reports. * Covers 14 energy-intensive sectors across 60 industrial clusters. * The support mechanism includes cluster-level outreach, energy audits, development of bankable Detailed Project Reports (DPRs), and facilitation of technology deployment and energy savings monitoring. * **Information Source:** This information was shared by the Minister of State for Micro, Small and Medium Enterprises, Sushri Shobha Karandlaje, in a written reply to Rajya Sabha. **Impact Analysis** **Micro and Small Enterprises (MSEs)** * **Impact:** MSEs will have improved access to technical expertise and financial assistance for energy-saving projects and transitioning to greener practices. They can benefit from subsidies and interest subventions to adopt new technologies and circular economy practices, potentially reducing operational costs and environmental impact. * **Action Required:** MSEs interested in adopting greener technologies, energy-efficient solutions, or circular economy practices should investigate eligibility criteria and application procedures for the mentioned schemes (MSME Sustainable (ZED), MSE-GIFT, MSE-SPICE, and ADEETIE). **Ministry of Micro, Small & Medium Enterprises (MSME)** * **Impact:** The Ministry is expanding its support mechanisms to foster sustainability and efficiency within the MSME sector, aligning with national green initiatives. * **Action Required:** Continue to facilitate the implementation and outreach of the various promotional schemes and programs designed to support MSMEs in their transition to greener practices. **Bureau of Energy Efficiency (BEE), Ministry of Power** * **Impact:** The BEE is actively engaged in supporting MSMEs through the ADEETIE scheme, contributing to the adoption of energy-efficient technologies across industrial clusters. * **Action Required:** Continue to provide interest subvention, technical support, and facilitate the implementation of energy-efficient technologies for MSMEs under the ADEETIE scheme.

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