Energy audit of MSMEs in 60 clusters to be facilitated, sops for clusters to shift to clean energy: FM Sitharaman

July 23, 2024

Synopsis
Budget unveils energy audit, sops to encourage MSMEs to shift to clean energy.

Considering the growing need for pushing clean energy across industries, a comprehensive road map for energy transition of MSME firms was unveiled by Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024-25 on Tuesday.

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“Energy audit of MSME in 60 clusters to be facilitated, and financial support to help clusters to shift to cleaner energy sources will be introduced," the FM said.

She stated that investment-grade energy audits will be conducted for traditional MSMEs, including glass and ceramic industry clusters. In due course, more clusters will be added.

The finance minister highlighted that the NDA government’s focus in the third term will be on energy security, and that a policy document on energy transition pathways will soon be released, focusing on growth, employment and the nation's environmental sustainability goals.

“A road map for moving the hard-to-abate industries for energy efficiency and targets to emission targets will be formulated. Appropriate regulations for transition for these industries to carbon-market mode will be put in place,” she said.

The MSME sector, often called the growth driver of India's economy, comprises nearly 63 million enterprises, which contribute 30% to the country’s GDP, 45% to manufacturing, 40% to exports, and provides employment to over 113 million people, according to official data.

[The Economic Times]