MSME scheme guide

ADEETIE scheme: cheaper loans, if the 10% saving holds.

ADEETIE helps MSMEs borrow for energy-efficient technology at a lower interest rate. The catch that matters most is in one line of the guidelines: the subvention is paid each year only if the project saves at least 10% energy and keeps saving it. Here is how the scheme works and how to be ready to show that saving.

By Madhusudan Rathi, founder · Updated 30 October 2026 · 5 min read

What ADEETIE is

ADEETIE (Assistance in Deploying Energy Efficient Technologies in Industries and Establishments) is a Central Sector Scheme of the Ministry of Power, run by the Bureau of Energy Efficiency (BEE). It gives MSMEs an interest subvention on loans for new energy-efficient technology, with support for an investment grade energy audit and for checking the savings afterwards. The scheme runs from 2025-26 to 2027-28.

Who is eligible

  • MSMEs registered on the Udyam portal, operating in one of 60 identified clusters in 14 energy-intensive sectors: brass, bricks, ceramics, chemicals, fisheries, food processing, forging, foundry, glass and refractory, leather, paper, pharmaceutical, steel re-rolling and textiles.
  • Loans from ₹10 lakh to ₹15 crore, from a scheduled commercial bank, public financial institution or NBFC.
  • Debt funding of up to 75% of the project cost.
  • New projects only. Projects already implemented, refinanced or benefiting from another scheme are not eligible, nor are loan accounts declared NPA.

Check the cluster list and current conditions on the official portal, adeetie.beeindia.gov.in.

What you get

  • Interest subvention: 5% for micro and small enterprises, 3% for medium enterprises, credited to the loan account through the lender.
  • Three years: the subvention is paid for three years, whatever the loan tenure.
  • Audit support: an investment grade energy audit (IGEA) and Detailed Project Report by BEE-engaged energy auditors, with the cost reimbursed within a cap if a lender approves the project.
  • Verification at BEE’s cost: energy auditors carry out Monitoring, Reporting and Verification (MRV) of the savings.

How it works, step by step

  1. Register on the scheme portal and submit an expression of interest for the project.
  2. The project is screened and an IGEA-based Detailed Project Report is prepared.
  3. A baseline specific energy consumption is established for your unit.
  4. You apply to the lender, the loan is sanctioned and you install the technology.
  5. You submit the project completion certificate; the lender verifies it and claims the subvention.
  6. MRV checks the energy saving against the baseline on a regular basis. The subvention is released when the saving is achieved.

New enrolment closes on 31 March 2028.

The 10% condition

The guidelines say projects that achieve at least 10% energy savings and sustain it during the scheme period are eligible for the annual subvention. Two things follow:

  • Savings are measured per unit of production. The baseline is specific energy consumption, energy per unit of output, so a bigger order book does not hide a saving, and a quiet month does not fake one. See specific energy consumption.
  • One good month is not enough. The saving has to hold. A new motor or compressor that slowly drifts back, or an old machine left running alongside it, can take the plant below 10%.

Records that help you show the saving

Verification is done by the auditors the scheme appoints; your own records do not replace it. But a plant that keeps its own figures knows early whether the saving is holding, and can answer the auditor’s questions with data.

  • Before the project: daily energy and daily production for at least a few months, so the baseline SEC reflects normal running, not one week.
  • On the upgraded equipment: a meter on the panel or feeder that serves it, so its saving is seen directly and not lost inside the plant total. See sub-metering.
  • After the project: the same daily energy and production records, with SEC worked out the same way, so before and after compare like with like.
  • Notes on what changed: product mix, shifts, new machines. They explain movements in SEC that are not about the project.

How KONDUKTOR® EMS helps

  • Energy from every panel meter, by hour, day and month, recorded inside your plant.
  • Daily production entry or CSV upload, with plant-wide SEC worked out each day and downloadable as CSV.
  • Excel and CSV export of energy history for the auditor and the lender.
  • Running, idle and stopped time per machine panel, to show that the old equipment is no longer running.

Are you the auditor? See how fixed monitoring helps show that a saving holds.

This page summarises the ADEETIE operational guidelines as published by BEE. KONDUKTOR is not part of the scheme’s administration and cannot confirm eligibility. Check the official portal and your lender for current terms.

Common questions

What is the ADEETIE scheme?+

A Ministry of Power scheme run by the Bureau of Energy Efficiency that gives MSMEs an interest subvention on loans for new energy-efficient technology: 5% for micro and small enterprises and 3% for medium enterprises, for three years, with support for an investment grade energy audit and for verifying the savings.

Who is eligible for ADEETIE?+

Udyam-registered MSMEs operating in 60 identified clusters across 14 energy-intensive sectors, borrowing between ₹10 lakh and ₹15 crore from a bank, financial institution or NBFC for a new energy-efficiency project. Check the official portal for the cluster list.

How is the 10% energy saving measured under ADEETIE?+

A baseline specific energy consumption, energy per unit of production, is established for each unit before the project. After installation, energy auditors appointed under the scheme check the saving against that baseline on a regular basis. The saving has to be at least 10% and be sustained for the annual subvention to be paid.

Can energy monitoring data be used for ADEETIE verification?+

Verification is carried out by the scheme’s energy auditors. Your own daily energy and production records help you set a realistic baseline, see early whether the saving is holding, and answer the auditor’s questions, but they do not replace the official check.

Know your baseline before the auditor asks.

Book a live demo and see daily energy and SEC recorded from your own meters, ready for before-and-after comparison.