The Association of Indian Forging Industry (AIFI), the apex body representing the Indian forging sector, has signed a Memorandum of Understanding (MoU) with the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India. This landmark partnership marks a significant step toward promoting sustainable manufacturing practices within the forging industry under the Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments (ADEETIE) scheme. This crucial MoU was signed in the presence of the Union Minister of Power and Housing & Urban Affairs, Manohar Lal.

The ADEETIE scheme, launched by the Ministry of Power and implemented by BEE, is aimed at enabling MSMEs across 14 energy-intensive sectors, including forging to adopt best-in-class energy-efficient technologies. With a comprehensive approach, the scheme offers interest subvention on technology adoption loans, handholding support for investment-grade energy audits, guidance on project implementation, and post-deployment monitoring. It also includes the establishment of a dedicated project management unit and a nodal banking partner to streamline execution.

Yash Munot, President of AIFI, emphasized the significance of the partnership, saying, “This collaboration with the Bureau of Energy Efficiency marks a significant step forward for the Indian forging industry. As one of the most energy-intensive sectors, forging stands to benefit immensely from the structured support offered under the ADEETIE scheme. By enabling access to financial incentives and technical guidance, this initiative will empower MSMEs to adopt cutting-edge, energy-efficient technologies. It aligns perfectly with our vision of building a globally competitive, environmentally responsible, and innovation-driven forging ecosystem. AIFI is committed to mobilizing our members across clusters to take full advantage of this opportunity and contribute meaningfully to India’s broader sustainability and industrial growth goals”.

With a total budgetary outlay of Rs 10 billion, the scheme will support over Rs 90 billion in anticipated investments, including Rs 67.50 billion in prospective MSME lending. Forging units will benefit from interest subvention rates of 5 per cent for micro and small enterprises and 3 per cent for medium enterprises, helping them overcome financial barriers to adopting energy-efficient solutions.

Deven Doshi, Chairman – Government Interface, AIFI, highlighted the strategic impact of this initiative, stating, “Energy efficiency is very essential for forging companies, but the MSME sector often faces structural barriers in adopting cleaner and more efficient technologies. The ADEETIE scheme provides a structured framework of support, including technical, operational and financial aspects, that directly addresses these challenges. AIFI is proud to be a partner in this transformative journey. This collaboration not only ensures sectoral compliance with energy norms but also paves the way for long-term industrial modernisation.”

The forging industry, especially its MSME segment, has long been a pillar of India’s manufacturing and export ecosystem, supporting critical sectors like automotive, defence, and capital goods. However, the high energy consumption in our processes has presented persistent cost and sustainability challenges. The ADEETIE scheme launched by the Bureau of Energy Efficiency is a timely and forward-looking initiative that directly addresses these issues. Through this MoU, AIFI will serve as a vital link between forging enterprises and the government, facilitating access to fiscal incentives such as interest subvention, and providing technical guidance on energy audits, project formulation, and implementation.

The forging industry, known for its critical role in automotive, defence, and heavy engineering sectors, is among the most energy-intensive. Through this MoU, AIFI will actively facilitate the integration of the ADEETIE scheme across forging clusters in India, ensuring that member enterprises have access to the tools, knowledge, and financial incentives required for sustainable growth.

This strategic alignment between AIFI and BEE paves the way for a greener future in Indian manufacturing, empowering MSMEs to reduce their energy footprint, enhance productivity, and bolster India’s sustainability goals.