MoU under ADEETIE scheme aims to support MSMEs in adopting energy-efficient technologies through financial incentives, technical guidance, and implementation support across forging clusters in India.
21 Jul 2025 | 1416 Views | By Sarthak Mahajan
The Association of Indian Forging Industry (AIFI) has signed a Memorandum of Understanding (MoU) with the Bureau of Energy Efficiency (BEE), under the Ministry of Power, Government of India, to promote energy-efficient technologies in the forging sector. The MoU was signed in the presence of the Union Minister of Power ...
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The Association of Indian Forging Industry (AIFI) has signed a Memorandum of Understanding (MoU) with the Bureau of Energy Efficiency (BEE), under the Ministry of Power, Government of India, to promote energy-efficient technologies in the forging sector. The MoU was signed in the presence of the Union Minister of Power and Housing & Urban Affairs, Manohar Lal, and comes under the Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments (ADEETIE) scheme.
The ADEETIE scheme is designed to support MSMEs in energy-intensive sectors, including forging, by providing interest subvention on loans for technology upgrades, assistance with energy audits, and post-deployment monitoring. The scheme also includes a dedicated project management unit and a nodal banking partner to simplify implementation.
Yash Munot, President of AIFI, highlighted the scheme’s potential benefits for forging MSMEs, stating that it offers both financial and technical support for adopting energy-efficient solutions. He noted that the partnership aligns with the industry’s efforts toward improving competitiveness and sustainability.
With a budgetary outlay of ₹1,000 crore, the ADEETIE scheme is expected to support investments of up to ₹9,000 crore, including ₹6,750 crore in MSME lending. Micro and small enterprises will receive interest subvention at 5%, while medium enterprises will receive 3%.
Deven Doshi, Chairman – Government Interface at AIFI, emphasized that many MSMEs face challenges in accessing advanced technologies due to operational and financial limitations. He said the scheme offers a comprehensive framework to address these issues and support long-term modernization.
The forging industry, which plays a vital role in sectors like automotive, defence, and engineering, is known for its high energy consumption. Through this MoU, AIFI will support member companies in adopting energy-efficient technologies by facilitating access to the scheme's resources and incentives.
Established in 1965, AIFI represents over 200 forging companies across India. Its members manufacture a range of components including crankshafts, connecting rods, suspension parts, flanges, and railway wheels. The association serves as a liaison between industry stakeholders and policy makers and represents one of the largest forging communities globally, with India ranking second in global forging production.