AP set to roll out mega MSME energy efficiency drive

Visakhapatnam: Andhra Pradesh is set to launch one of India’s largest energy and water efficiency programmes for MSMEs. The industries department will organise the 'MSME Growth Conclave' in Vijayawada on May 25, with chief minister N Chandrababu Naidu scheduled to attend the event as chief guest.

A major highlight of the conclave will be the launch of energy and water efficiency intervention programme for MSMEs in partnership with Energy Efficiency Services Limited (EESL). Andhra Pradesh govt earlier signed a memorandum of understanding with EESL during the CII Partnership Summit 2025 to implement structured efficiency interventions for MSMEs across the state.

Under the programme, comprehensive energy and water audits will be conducted in MSME units across Andhra Pradesh. Cluster mapping and diagnostic studies will cover 15 MSME clusters and benefit more than 1,000 enterprises. The study will establish a baseline of energy consumption and operational performance at both unit and cluster levels by analysing electricity and fuel usage, production output, operational parameters, and utility consumption.

Cluster-specific energy intensity indicators will also be developed to benchmark MSME units engaged in similar industrial activities and identify high-energy-consuming enterprises requiring priority intervention. Participating MSMEs will be geo-tagged, and GIS-based mapping will be carried out to identify energy-intensive hotspots within industrial clusters.

The audits and studies are expected to identify energy losses, excess water consumption, utility inefficiencies, process optimisation opportunities, equipment retrofitting needs, and broader technology upgradation requirements. Based on the findings, detailed project reports will recommend energy-efficient machinery, improved utility management, water reuse and recycling systems, and sustainable production practices.

MSMEs adopting technology upgrades will be eligible for subsidy support of up to 25% under the MSME & Entrepreneur Development Policy 4.0 (MEDP 4.0). Andhra Pradesh currently has more than 21 lakh MSMEs, forming the backbone of the state’s industrial ecosystem.

“As part of the vision laid down by chief minister N. Chandrababu Naidu for sustainable and competitive MSME growth, the industries department is organising the MSME Growth Conclave on May 25 in Vijayawada,” said N Yuva Raj, secretary, industries department. He said the conclave would bring together key stakeholders from across the MSME ecosystem and showcase major initiatives aimed at improving competitiveness, sustainability, technology adoption, and market readiness.