Introduction: ADEETIE Scheme
The ADEETIE Scheme helps MSMEs pay less interest on loans for energy-efficient machinery. It offers a 5% interest subvention to micro and small enterprises. Medium enterprises get 3%. In addition, the scheme supports the cost of the energy audit report. As a result, owners can upgrade old furnaces, boilers, and motors with less financial stress.
What Is the ADEETIE Scheme?
ADEETIE stands for Assistance in Deploying Energy Efficient Technologies in Industries and Establishments. The Ministry of Power runs it as a Central Sector Scheme, and the Bureau of Energy Efficiency (BEE) implements it. The scheme has two pillars. First, it gives interest subvention on loans. Second, it provides handholding. Handholding covers Investment Grade Energy Audits (IGEA), Detailed Project Reports (DPRs), and Monitoring, Reporting and Verification (MRV).
The scheme runs from FY 2025–26 to FY 2027–28. However, BEE will not accept new enrolments after 31 March 2028. Therefore, early registration matters.
ADEETIE Scheme Eligibility: Who Can Apply?
ADEETIE Scheme eligibility rests on five core conditions. An MSME must meet all of them.
- Registration and location: The unit must hold Udyam registration. Also, it must operate in one of the 60 identified clusters.
- Sector: The unit must belong to one of 14 energy-intensive sectors.
- Loan source: The MSME must seek a loan from a bank or financial institution.
- Loan size: The loan must fall between ₹10 lakh and ₹15 crore.
- Debt share: Debt funding up to 75% of the project cost qualifies for interest subvention.
In addition, the project must achieve at least 10% energy savings. Moreover, the unit must sustain those savings during the scheme period. Only then does it receive the annual subvention.
Who Is Not Eligible?
Some cases fall outside the scheme. For instance, the subvention applies only to loans for new energy-efficient projects. Projects already implemented do not qualify. Likewise, projects that benefited under other schemes, or that were refinanced, are excluded. Finally, borrowers whose loan accounts are Non-Performing Assets (NPAs) cannot apply.
ADEETIE Eligible Sectors and Clusters
The scheme covers 14 sectors across 60 clusters. The table below follows the scheme.
Sector | Eligible clusters |
Brass | Jagadhri, Jamnagar, Moradabad, Salem |
Bricks | Bengaluru, Begusarai, Indore, Nagpur, Tripura |
Ceramics | Morbi region, Thangadh, Khurja |
Chemicals | Ankleshwar & Panoli, Jamshedpur, Karnal, Thane, Vapi |
Fisheries | Kochi, Bhubaneswar, West Godavari |
Food Processing | Ganjam & Nayagarh, Kaithal, Ludhiana, Pune |
Forging | Bangalore, Pune, Delhi-NCR, Chennai, Ludhiana |
Foundry | Batala, Jalandhar, Ludhiana, Howrah, Rajkot, Belgaum, Coimbatore |
Glass & Refractory | Ambala, Chirkunda, East & West Godavari, Firozabad |
Leather | Kanpur, Kolkata, Pallavaram, Jalandhar |
Paper | Muzaffarnagar-Saharanpur, Kashipur, Vapi, Coimbatore & Erode |
Pharmaceutical | Baddi, Medak region, Madgaon, Ahmedabad, Bidar |
Steel Re-Rolling | Mandi Gobindgarh & Ludhiana, Jaipur, Jalna, Raipur |
Textiles | Ludhiana, Surat, Tirupur, Solapur, Panipat |
Check that your unit sits inside this list. Otherwise, the scheme may not apply to you.
ADEETIE Scheme Benefits for MSMEs
The ADEETIE Scheme benefits fall into three groups: lower interest cost, audit support, and free verification.
Benefit | Micro & Small | Medium |
Interest subvention rate | 5% | 3% |
Subvention period | 3 years, whatever the loan tenure | 3 years, whatever the loan tenure |
Minimum net interest rate | 2% | 2% |
IGEA-based DPR reimbursement | Up to ₹1 lakh per DPR* | Up to ₹1 lakh per DPR |
MRV cost | Paid by BEE | Paid by BEE |
ADEETIE Interest Subvention
ADEETIE interest subvention is a government payment toward your loan interest. The lending institution credits it to your loan account. Importantly, BEE releases it only after MRV confirms your energy savings. In other words, results unlock the incentive.
Also, the subvention runs for three years only. It does not extend if you choose a longer loan tenure. Furthermore, BEE’s scheme page states that the net borrowing rate will not fall below 2%. Consequently, your actual benefit depends on your loan’s interest rate.
Audit and DPR Support
Banks need a bankable report before they sanction an energy-efficiency loan. Here, the scheme helps. It reimburses up to ₹1,00,000 per IGEA-based DPR once a lending institution approves the project. Notably, BEE bears the MRV cost, so you do not pay for verification. Moreover, local certified energy auditors, certified energy managers, and audit firms receive preference.
*BEE’s website mentions ₹75,000 for micro and small units and ₹1 lakh for medium units. Hence, confirm the cap on the portal before you commission a DPR.
ADEETIE Loan Subsidy: An Example
Consider a micro enterprise in the Morbi ceramics cluster. It takes a ₹1 crore loan for an energy-efficient kiln. The bank charges 10% interest. With a 5% subvention, the net rate falls to about 5%. In the first year, that means roughly ₹5 lakh in interest support if the full principal stays outstanding.
Over three years, the support could reach up to ₹15 lakh in the best case. However, your principal falls as you repay, so the real figure will be lower. Also, BEE’s detailed scheme will set the final calculation rules. Therefore, treat this as an illustration, not a promise.
Any scheduled commercial bank, public financial institution, or NBFC can act as your lender. Meanwhile, a Central Nodal Agency channels the subvention to the lender.
Why the Energy Efficiency Subsidy for MSME India Matters Now
The government capped budget support for interest subvention at ₹875 crore. At least ₹613 crore goes to micro and small enterprises. Up to ₹262 crore goes to medium enterprises. Because funds are capped, early applicants hold an advantage. Besides, lower energy bills improve margins long after the subvention ends.
Why Hire an ADEETIE Scheme Consultant?
The scheme involves the portal, auditors, banks, and verification teams. Consequently, many owners struggle to coordinate everything alone. An ADEETIE Scheme consultant removes that burden.
At Finraja Consultancy Pvt Ltd, our subsidy consultants support you at every stage:
- Checking your eligibility, sector, and cluster
- Registering on the portal and filing the EoI
- Coordinating with certified energy auditors for the DPR
- Preparing the loan file and liaising with lenders
- Tracking completion documents and subvention claims
As a result, you save time and avoid costly rejections. However, no consultant can guarantee approval because BEE, the lender, and MRV results decide the outcome.
ADEETIE Scheme FAQs
What is the ADEETIE Scheme?
It is a Central Sector Scheme that gives interest subvention and technical handholding to MSMEs adopting energy-efficient technologies.
What is the interest subvention rate?
It is 5% for micro and small enterprises and 3% for medium enterprises, paid for three years.
What loan size qualifies?
Loans from ₹10 lakh to ₹15 crore qualify, with up to 75% debt funding of the project cost.
Can I claim the subsidy for an existing project?
No. The scheme covers new projects only.
What is the last date to enrol?
BEE accepts new enrolments until 31 March 2028.
Conclusion
The ADEETIE Scheme offers a real financial incentive for MSMEs ready to modernise. It cuts loan interest, supports audit costs, and rewards verified energy savings. However, the rules are strict, and timing matters. Therefore, check your eligibility today, and plan your project before you buy any equipment.
Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.
