New Delhi : The Association of Indian Forging Industry (AIFI), the apex body representing India’s forging sector, has signed a strategic Memorandum of Understanding (MoU) with the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India. This landmark partnership, formalised under the Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments (ADEETIE) scheme, aims to promote sustainable manufacturing practices and energy efficiency in the forging industry. The MoU signing was graced by the presence of Union Minister of Power and Housing & Urban Affairs, Manohar Lal.
ADEETIE Scheme: Transforming MSME Energy Practices
The ADEETIE scheme, launched by the Ministry of Power and implemented by BEE, is designed to help MSMEs across 14 energy-intensive sectors, including forging, to adopt advanced, energy-efficient technologies. The scheme offers:
- Interest subvention on loans for energy-efficient technology adoption.
- Handholding support for investment-grade energy audits.
- Guidance on project implementation and post-deployment monitoring.
- A dedicated project management unit and a nodal banking partner to streamline processes.
With a budgetary outlay of ₹1,000 crore, ADEETIE is expected to facilitate ₹9,000 crore in total investments, including ₹6,750 crore in MSME lending. Forging MSMEs will benefit from 5% interest subvention for micro and small enterprises and 3% for medium enterprises, easing financial barriers to adopting energy-efficient technologies.
Leaders Speak on the Partnership
Yash Munot, President of AIFI, said:
“This collaboration with the Bureau of Energy Efficiency marks a significant step forward for the Indian forging industry. As one of the most energy-intensive sectors, forging stands to benefit immensely from the structured support offered under the ADEETIE scheme. This initiative will empower MSMEs to adopt cutting-edge, energy-efficient technologies, aligning perfectly with our vision of building a globally competitive, environmentally responsible, and innovation-driven forging ecosystem.”
Deven Doshi, Chairman – Government Interface, AIFI, added:
“Energy efficiency is essential for forging companies, but the MSME sector often faces structural barriers in adopting cleaner and more efficient technologies. The ADEETIE scheme provides technical, operational, and financial support that directly addresses these challenges. AIFI is proud to partner in this transformative journey, which paves the way for long-term industrial modernisation.”
Impact on Forging Industry
The forging sector, a key contributor to India’s automotive, defence, and heavy engineering industries, has long faced cost and sustainability challenges due to high energy consumption. Through this MoU, AIFI will act as a bridge between forging enterprises and government initiatives, ensuring access to fiscal incentives, technical guidance, energy audits, and project execution strategies.
AIFI will actively mobilise forging clusters across India to integrate ADEETIE’s benefits, enabling enterprises to reduce their energy footprint, enhance operational productivity, and support India’s sustainability and green manufacturing goals.
