Promoting market transformation for energy efficiency in micro-, small- and medium enterprises (MSMEs)

Promoting market transformation for energy efficiency in
micro-, small- and medium enterprises (MSMEs)

              GEF :    
               BEE :   
          MoMSME :


The project promotes the implementation of energy efficiency in the MSME sector. The goal is to create and sustain a revolving fund mechanism to ensure replication of energy efficiency measures in the sector, and to address the identified barriers for scaling-up energy efficiency measures. The overall aim is to promote a cleaner and more competitive MSME industry in India. The focus of the project is on sector specific energy-efficient process technologies, and to facilitate investments through a combination of reduction of technical risks (standardization and localization of technology), and reduction of financing burden (through market aggregation and innovative, energy service-based funding model).

The project covers 12 MSME clusters around India.

Cluster Sector
Surat Textile
Jorhat Tea
Ankleshwar Chemical
Howrah Mixed
Vellore Rice
East and West Godavari Ceramics
Sundergarh Sponge Iron
Medak Pharma
Aurangabad Mixed
Batala, Jalandhar & Ludhiana Casting & Forging
Varanasi Textile
Muzaffarnagar Paper


  1. Programme to identify energy intensive clusters and replicable technologies: identification of 10 energy intensive clusters based on objective criteria and technologies that have the maximum impact on the respective clusters.
  2. Demonstration projects and aggregation of demand for demonstrated technologies in the clusters.
  3. Establishment of financing models to support replication of energy efficiency projects in MSMEs.

Expected Impact

The project aims to accelerate adoption of energy-efficient technologies in the sector by removing its key barriers. It is expected to deploy 33-35 technologies in selective MSME clusters in the country which have the maximum possibility of replication and potential to improve the energy baseline of fellow MSMEs units.


Donor: Global Environment Facility (GEF)

Others Partners
  1. Ministry of Micro, Small and Medium Enterprises (MoMSME)
  2. Energy Efficiency Services Limited (EESL)
  3. Bureau of Energy Efficiency (BEE), Ministry of Power
  4. Small Industries Development Bank of India (SIDBI)

Project Duration:

Sep 2015 – June 2024