NITI Aayog Proposes National Agency For MSME Green Transition
ECONOMY & POLICY

NITI Aayog Proposes National Agency For MSME Green Transition

Government think tank NITI Aayog has recommended the creation of a national project management agency to accelerate the transition of micro, small and medium enterprises (MSMEs) towards green energy, as India works towards its net-zero carbon emissions target by 2070.

In its report titled “Roadmap for Green Transition of MSMEs”, NITI Aayog proposed that the National Project Management Agency (NPMA) should function as an independent consultative and advisory body, overseen by an inter-ministerial committee. The agency would be responsible for driving on-ground implementation of green transition initiatives by working closely with MSME clusters through a transparent cluster selection framework.

The report suggested that the NPMA should identify interested MSME clusters and industrial associations through an expression of interest process outlining selection criteria and implementation pathways. It also recommended that MSME clusters form special purpose vehicles to participate in the green transition programme.

In a separate report on the cement sector, NITI Aayog highlighted the potential of increasing the use of refuse-derived fuel from municipal solid waste as a substitute for coal-based thermal energy. The report also recommended greater adoption of supplementary cementitious materials, clinker substitutes and the scaling up of carbon capture, utilisation and storage technologies. According to the Aayog, these measures could help the Indian cement sector reduce greenhouse gas emissions by 80–85 per cent by 2070.

In its roadmap for the aluminium sector, NITI Aayog proposed a three-stage decarbonisation strategy. This includes a transition to round-the-clock renewable energy and grid integration in the short term until 2030, followed by the adoption of nuclear power between 2030 and 2040, and the integration of carbon capture, utilisation and storage with captive coal-based generation beyond 2040.

India’s MSME sector comprises around 69 million enterprises, of which approximately 68.6 million are micro enterprises. MSMEs contribute about 45.7 per cent of India’s exports, 30 per cent of gross value added in GDP and 36.2 per cent of manufacturing output, while employing around 250 million people.

The sector remains heavily dependent on fossil fuels for energy and process requirements, resulting in an estimated 135 million tonnes of carbon emissions in 2022. MSMEs face multiple challenges in undertaking green projects, including limited technical capacity, constrained access to finance, low awareness of policy frameworks, lack of scalable business models and uncertainty in investment decisions.

At COP26, India committed to achieving net-zero emissions by 2070, reducing carbon intensity by 45 per cent by 2030 and increasing non-fossil energy capacity to 500 GW by 2030. Achieving these targets will require coordinated action across industries, with industrial decarbonisation emerging as a critical priority.

NITI Aayog emphasised that given the diversity of India’s industrial landscape, a sector-specific approach will be essential to drive an effective and sustainable green transition.

Government think tank NITI Aayog has recommended the creation of a national project management agency to accelerate the transition of micro, small and medium enterprises (MSMEs) towards green energy, as India works towards its net-zero carbon emissions target by 2070. In its report titled “Roadmap for Green Transition of MSMEs”, NITI Aayog proposed that the National Project Management Agency (NPMA) should function as an independent consultative and advisory body, overseen by an inter-ministerial committee. The agency would be responsible for driving on-ground implementation of green transition initiatives by working closely with MSME clusters through a transparent cluster selection framework. The report suggested that the NPMA should identify interested MSME clusters and industrial associations through an expression of interest process outlining selection criteria and implementation pathways. It also recommended that MSME clusters form special purpose vehicles to participate in the green transition programme. In a separate report on the cement sector, NITI Aayog highlighted the potential of increasing the use of refuse-derived fuel from municipal solid waste as a substitute for coal-based thermal energy. The report also recommended greater adoption of supplementary cementitious materials, clinker substitutes and the scaling up of carbon capture, utilisation and storage technologies. According to the Aayog, these measures could help the Indian cement sector reduce greenhouse gas emissions by 80–85 per cent by 2070. In its roadmap for the aluminium sector, NITI Aayog proposed a three-stage decarbonisation strategy. This includes a transition to round-the-clock renewable energy and grid integration in the short term until 2030, followed by the adoption of nuclear power between 2030 and 2040, and the integration of carbon capture, utilisation and storage with captive coal-based generation beyond 2040. India’s MSME sector comprises around 69 million enterprises, of which approximately 68.6 million are micro enterprises. MSMEs contribute about 45.7 per cent of India’s exports, 30 per cent of gross value added in GDP and 36.2 per cent of manufacturing output, while employing around 250 million people. The sector remains heavily dependent on fossil fuels for energy and process requirements, resulting in an estimated 135 million tonnes of carbon emissions in 2022. MSMEs face multiple challenges in undertaking green projects, including limited technical capacity, constrained access to finance, low awareness of policy frameworks, lack of scalable business models and uncertainty in investment decisions. At COP26, India committed to achieving net-zero emissions by 2070, reducing carbon intensity by 45 per cent by 2030 and increasing non-fossil energy capacity to 500 GW by 2030. Achieving these targets will require coordinated action across industries, with industrial decarbonisation emerging as a critical priority. NITI Aayog emphasised that given the diversity of India’s industrial landscape, a sector-specific approach will be essential to drive an effective and sustainable green transition.

Next Story
Infrastructure Urban

Lemon Tree Hotels Signs Resort In Lonavala Maharashtra

Lemon Tree Hotels Limited (LTHL) has signed a licence agreement for Lemon Tree Resort in Lonavala, Maharashtra, with the asset to be managed by Carnation Hotels Private Limited, a wholly owned subsidiary of LTHL. The resort will offer 50 well appointed rooms and will include a restaurant, banquet, meeting room, swimming pool, spa and fitness centre. The company described the addition as part of its strategy to expand branded resort offerings in key getaway destinations. Lonavala, located in the Sahyadri hills, is a popular leisure destination in western India known for scenic landscapes and a ..

Next Story
Infrastructure Urban

Kalai Chettinad Art And Architecture Festival At The Lotus Palace

The Lotus Palace Chettinad will host Kalai, the Chettinad Art and Architecture Festival, a four-day, three-night immersive celebration of the artistic legacy of Chettinad from three to six April 2026. The event has been organised by Apeejay Surrendra Park Hotels Limited (ASPHL) and will take place across restored heritage properties in Chettinad. It will be designed to offer guests a layered experience of place, structure and story that connects art, architecture and living traditions. The festival aims to present a confluence of global influences and local aesthetics. Kalai has been curated i..

Next Story
Infrastructure Energy

SJVN Reaches One bn Units At 1,000 MW Bikaner Solar Project

SJVN Limited (SJVN) has reached a milestone with its 1,000 megawatt (MW) Bikaner Solar Power Project by generating one bn units of electricity on 20 March 2026. The achievement underscores the company's role in supplying clean and sustainable energy to the national grid. The generation milestone was recorded within months of the project commencing operations and highlights rapid performance from the new facility. The Bikaner project, located in Bikaner district of Rajasthan, has been developed and implemented by SJVN Green Energy Limited (SGEL) under the Central Public Sector Undertaking Schem..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement