ADEETIE Scheme: Eligibility, Benefits and How to Apply

Published 2026-10-13.

Most MSME owners know which machine wastes energy. The furnace with the cracked lining, the compressor that runs all night, the boiler older than the business. What stops them replacing it is the loan: the interest, the paperwork, and a banker who cannot tell whether the promised saving is real.

ADEETIE is the central government's attempt to fix that. This article explains what it offers, who qualifies and how the process runs.

What it is

ADEETIE (Assistance in Deploying Energy Efficient Technologies in Industries and Establishments) is a Ministry of Power scheme run by the Bureau of Energy Efficiency. The Minister of Power, Manohar Lal, launched its portal on 17 July 2025. It runs for three financial years, 2025-26 to 2027-28. The budget is reported as ₹1,000 crore, though one policy review cites ₹925 crore for the main outlay.

What it offers

Interest subvention: 5 percent for micro and small enterprises and 3 percent for medium enterprises, on loans for energy-efficient technology. The borrower's net interest rate cannot fall below 2 percent.
Loan size: reported as ₹10 lakh to ₹15 crore.
A funded audit: an investment-grade energy audit and detailed project report prepared by a BEE-empanelled auditor. BEE reimburses the auditor up to ₹1 lakh per report, after a lender approves the project.

Who qualifies

MSMEs registered on the Udyam portal.
Operating in one of the scheme's 60 energy-intensive clusters across 14 sectors, such as steel re-rolling, foundries, brass, ceramics, glass, textiles and chemicals. A policy review notes that units within 200 km of a notified cluster can also apply, and that a second phase is planned for another 100 clusters.
The project must achieve, and keep, at least 10 percent energy savings during the scheme period. The subvention is paid each year the saving is sustained.

How the process runs

Register the unit on the ADEETIE portal, adeetie.beeindia.gov.in.
Get the audit: a BEE-empanelled auditor carries out the investment-grade audit and prepares the project report.
Apply for the loan with a participating lender using that report. Lenders update sanction and disbursement on the portal.
Install and measure. The saving is checked against the baseline, and the subvention continues while the saving holds.

Where applications go wrong

The 10 percent test is a measurement test. A unit that cannot show its energy use per tonne before the project will struggle to prove the saving after it. Start with twelve months of electricity bills and fuel invoices, matched to monthly production. Senseible turns those documents into kWh, fuel and emissions per month, each linked to its source, which gives the auditor and the lender the same baseline.

The limits

A policy review by IMPRI points out that BEE had not yet published cluster-wise data on the number of MSMEs financed, and that units outside notified clusters are excluded. Check that your cluster is listed before you plan around the scheme.

For cluster examples, see green finance for Jalna's re-rolling mills and Ludhiana and Raipur steel MSMEs.

Confirm current terms, clusters and participating lenders on the BEE portal before you apply.