In a landmark move to promote sustainable manufacturing, the Association of Indian Forging Industry (AIFI), the apex body representing India’s forging sector, has signed a Memorandum of Understanding (MoU) with the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India. The partnership, formalised under the Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments (ADEETIE) scheme, aims to catalyse the adoption of energy-efficient technologies within the forging sector, particularly among MSMEs.
The MoU was signed in the presence of the Union Minister of Power and Housing & Urban Affairs, Manohar Lal, marking a significant step toward achieving India’s broader sustainability and energy efficiency goals.
The ADEETIE scheme, launched by the Ministry of Power and implemented by BEE, offers a comprehensive support package to MSMEs operating in 14 energy-intensive sectors, including forging. It provides interest subvention on loans for technology adoption, handholding support for investment-grade energy audits, guidance on project execution, and post-deployment monitoring. A dedicated project management unit and a nodal banking partner will also facilitate smooth implementation.
Commenting on the partnership, Yash Munot, President of AIFI, said, “This collaboration with BEE marks a significant leap for the Indian forging industry. Forging, being one of the most energy-intensive sectors, will greatly benefit from the structured support under the ADEETIE scheme. Access to financial incentives and technical guidance will empower MSMEs to adopt world-class, energy-efficient technologies, aligning with our vision of building a globally competitive and environmentally responsible forging ecosystem.”
The scheme, with a budgetary outlay of ₹1,000 crore, is expected to catalyse investments of over ₹9,000 crore, including ₹6,750 crore specifically for MSME lending. Forging units will receive interest subvention of 5% for micro and small enterprises and 3% for medium enterprises, significantly reducing the cost burden of adopting cleaner and more efficient technologies.
Highlighting the significance of the initiative, Deven Doshi, Chairman – Government Interface, AIFI, stated, “Energy efficiency is critical for forging companies, especially MSMEs, who often face structural barriers to technology adoption. The ADEETIE scheme offers a robust framework combining technical, operational, and financial support. This partnership will help modernise the sector, ensure compliance with energy norms, and foster sustainable growth.”
The forging industry, which plays a crucial role in India’s automotive, defence, and heavy engineering sectors, has long grappled with high energy consumption. The partnership between AIFI and BEE is seen as a transformative step toward reducing energy costs, improving competitiveness, and supporting India’s sustainability targets.
Under this MoU, AIFI will actively engage with its member enterprises across forging clusters in India, facilitating access to financial incentives and technical assistance to drive adoption of energy-efficient solutions.
This strategic collaboration is expected to significantly contribute to reducing the sector’s energy footprint, enhancing productivity, and paving the way for a greener and more modern industrial landscape in India.
