How to Get a Green Loan for a Steel Rolling Mill in Jalna

Published 2026-10-13.

Jalna, in Maharashtra's Marathwada region, is one of the state's main steel re-rolling centres, making the TMT bars that go into houses and roads. Its mills melt scrap and sponge iron in induction furnaces, cast billets, reheat them and roll them into bars. Every one of those steps runs on electricity or fuel, so the energy bill decides who survives a weak steel price.

The question for a Jalna owner is whether there is finance built for this kind of upgrade, and what a lender needs to see.

A scheme that names Jalna

The Bureau of Energy Efficiency's ADEETIE scheme, worth ₹1,000 crore, covers 14 energy-intensive sectors and lists Jalna among its steel re-rolling clusters, alongside Mandi Gobindgarh, Ludhiana, Jaipur and Raipur, as reported by GreentechLead citing IEEFA. The reported terms:

Interest subvention of 5 percent for micro and small units and 3 percent for medium units on loans for energy-efficient technology.
A savings test: projects must show, and keep, at least 10 percent energy savings during the scheme period.

Confirm the current terms, the empanelled auditors and the participating banks with the BEE or your bank before you plan around them.

Why good projects still fail to get funded

The same IEEFA analysis makes a point every owner will recognise: the barrier is less the technology than the paperwork. Small projects with attractive paybacks struggle because of their size, weak project documentation, perceived technology risk and lenders' worry about verifying the savings afterwards. The 10 percent test makes that last point concrete. If you cannot measure energy per tonne before and after, you cannot show the saving the subvention depends on.

Where the savings usually are

Induction furnace: efficient coils and power supplies, better crucible practice, and charging that keeps the furnace full.
Reheating furnace: recuperators that preheat combustion air, better insulation and burner control.
Hot charging: sending billets to the rolling mill while still hot, where the layout allows, so they need less reheating.
Drives and auxiliaries: variable-speed drives on fans, pumps and the rolling mill.
Rooftop solar on mill sheds for daytime load.

What to put in front of the lender

Twelve months of electricity bills with units, maximum demand and power factor, plus fuel invoices for the reheating furnace.
Monthly production in tonnes of billet and bar, so you can state kWh and fuel per tonne.
An energy audit by an empanelled auditor, with the expected saving for each measure.
A metering plan that will show the 10 percent saving after installation.

For the emission factors behind these bills, see grid electricity and coal. For other steel clusters, read green finance for Ludhiana and Raipur steel MSMEs. Senseible turns bills and invoices into kWh, fuel and emissions per month, each linked to its source document.

Confirm current eligibility and terms with the lender before you apply.