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UPEX 2026

MSME Ministry Expands Support for Energy Efficiency and Green Transition in Small Enterprises

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Representational image. Credit: Canva

The Ministry of Micro, Small and Medium Enterprises (MSME) is undertaking multiple initiatives to help small businesses access technical expertise and financial support for energy-saving projects while facilitating their transition to sustainable and greener practices.

According to the ministry, key programmes include the implementation of the MSME Sustainable (ZED) and MSME Competitive Lean components under the MSME Champion Scheme, along with the Micro and Small Enterprises Green Investment and Financing for Transformation (MSE-GIFT) Scheme and the Micro and Small Enterprises โ€“ Scheme for Promotion and Investment in Circular Economy (MSE-SPICE).

Under the ZED certification framework, the government provides consultancy support of up to โ‚น2 lakh per unit for certified enterprises. In addition, financial assistance of up to โ‚น3 lakh is available for technology upgradation to enable MSMEs to adopt environmentally sustainable practices.

The MSE-GIFT scheme further promotes green adoption by offering 2% interest subvention to micro and small enterprises investing in energy-efficient and environmentally friendly technologies. Meanwhile, the MSE-SPICE scheme provides 25% capital subsidy to support MSMEs implementing circular economy practices.

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In parallel, the Bureau of Energy Efficiency (BEE) under the Ministry of Power is implementing the ADEETIE Scheme, which aims to accelerate the adoption of energy-efficient technologies in industrial establishments.

The ADEETIE programme provides 3โ€“5% interest subvention, along with technical assistance such as energy audits and feasibility reports. The initiative currently covers 14 energy-intensive sectors across 60 industrial clusters, supporting enterprises through cluster-level outreach, preparation of bankable Detailed Project Reports (DPRs), technology deployment, and monitoring of energy savings.

The information was shared by Shobha Karandlaje, Minister of State for MSME, in a written reply in the Rajya Sabha.


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