The Union Budget promises energy audits for 60 MSME clusters and financial support to help them shift to green energy
The Finance Minister, Nirmala Sitharaman, unveiled a comprehensive roadmap for the energy transition of MSME (Micro, Small and Medium Enterprises) firms while presenting the Union Budget 2024-25. She announced that energy audits for MSMEs in 60 clusters would be facilitated, and financial support would be provided to help these clusters shift to cleaner energy sources.
The finance minister mentioned that investment-grade energy audits would be conducted for traditional MSMEs, such as those in the glass and ceramic industry clusters, with additional clusters to be included later on.
She emphasised the government's focus on energy security in its third term. She revealed that a policy document on energy transition pathways would soon be released, focusing on growth, employment, and the nation's environmental sustainability goals.
The Finance Minister also stated that a roadmap for transitioning hard-to-abate industries to energy efficiency and emissions targets would be developed. Appropriate regulations for transitioning these industries to a carbon-market mode would also be established.
The MSME sector, known as the growth driver of India's economy, comprises nearly 63 million enterprises contributing 30% to the country’s GDP, 45% to manufacturing, 40% to exports, and employing over 113 million people, according to official data.