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With Climate Change, transition towards an energy efficient economy is highly imperative for the manufacturing sector, including Micro, Small and Medium Enterprises (MSMEs), which account for a large part of the world’s consumption of resources. The MSME sector occupies a position of prominence in the Indian economy, contributing to more than 45% of the industrial output and 40% of the country's exports in value addition terms.

MSMEs, the critical growth driver of the Indian economy, play an important role in the context of energy-intensive industries. Although their individual energy consumption is rather low, their collective use is considerable. Lack of access to latest technologies make this sector vulnerable to energy security and competitiveness in global market. The poor energy and environmental performance are directly related to the lack of technical capacity in these enterprises to identify, access, adapt and adopt better technologies and operating practices.

National Programme on Energy Efficiency and Technology Upgradation of MSMEs

In 2007, to recognize the importance of MSMEs in promoting energy efficiency, ‘National Programme on Energy Efficiency and Technology Upgradation of MSMEs’ was flagged off by Bureau of Energy Efficiency. Lack of access to finance for MSMEs is one of the stumble blocks for implementing energy conservation measures and energy efficient technologies. With this cognizance, Bureau, under XII plan has implemented 21 pilot energy efficient technologies with financial assistance in 4 SME sectors. To aid the replication of these technologies across the sectors, cluster level entities (i.e. local service providers, industrial associations etc.) were also strengthened. To effectively manage the experience so generated and spreading the same nationwide, knowledge management products like case studies, audio visuals were also developed.


Due to continuous efforts of Bureau, SDAs and its stakeholders, MSMEs in India have started to shift from a traditional strictly cost and quality approach to energy efficiency, zero waste and reduced carbon emissions.


Current Activities

  • Further, for bringing more competitiveness and making this sector more energy efficient, it is quintessential to understand the consumption of energy and its flow within the facility along with the classification of energy usage and its relationship to processes and production outputs in present scenario. Thus, Bureau is conducting energy mapping of 10 sectors which will cover energy usage pattern, detailed analysis and technology gap analysis. Bureau has also developed more than fifty (50) multimedia tutorials on energy efficient technologies for more than twenty (20) sectors for knowledge transfer and thereby easy adoption of these technologies.
  • Bureau has also signed a MoU for joint implementation of the programme titled “Promoting Energy Security of MSME sector” with Office of DC, MSME during recently held National Conclave on Enhancing Energy Efficiency in MSME Sector. Implementation of this programme will start soon.

Although the energy saving potential is immense in this sector which BEE intends to unlock, there are quite a challenge faced by Indian SME entrepreneurs which are risk averseness, cumbersome documentation and lack of awareness/motivation. With the collective efforts of Bureau towards improving the energy performance, the current state of awareness, perception and responsiveness towards energy efficiency programmes for this segment has become the mainstream across the country.

Knowledge Management (BEE SME Programme)

  • National Conclave on Enhancing Energy Efficiency in MSME Sector