AIFI And Bureau Of Energy Efficiency Sign MoU To Promote Energy-Efficient Technologies In Forging Industry

The Association of Indian Forging Industry (AIFI), the apex body representing the Indian forging sector, has entered into a significant partnership with the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India. A Memorandum of Understanding (MoU) was signed under the Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments (ADEETIE) scheme — a landmark initiative to promote sustainable manufacturing within the forging industry.

The MoU signing took place in the presence of Union Minister of Power and Housing & Urban Affairs, Manohar Lal, underscoring the government’s commitment to decarbonising energy-intensive sectors.

The ADEETIE scheme, implemented by BEE, targets MSMEs in 14 high-energy-consuming sectors, including forging. It provides a comprehensive support framework including:

• Interest subvention on loans for adopting energy-efficient technologies (5% for micro and small, 3% for medium enterprises)

• Handholding support for investment-grade energy audits

• Implementation guidance and post-deployment monitoring

• Dedicated Project Management Unit and nodal banking partner for streamlined execution

Speaking on the occasion, Mr. Yash Munot, President, AIFI, stated: “This collaboration with BEE marks a major leap forward for the Indian forging industry. As one of the most energy-intensive sectors, we stand to gain immensely from the ADEETIE scheme’s structured support. It will empower MSMEs to adopt cutting-edge, energy-efficient technologies, aligning with our vision of a globally competitive, environmentally responsible, and innovation-driven forging ecosystem. AIFI is committed to mobilising our member clusters to fully leverage this opportunity and contribute to India’s broader industrial and sustainability goals.”

The scheme has a total budgetary outlay of ₹1,000 crore, aimed at facilitating over ₹9,000 crore in total investments, including ₹6,750 crore in MSME lending. This financial push will enable forging units to reduce operational costs and improve energy performance.

Mr. Deven Doshi, Chairman – Government Interface, AIFI, added: “Energy efficiency is crucial for forging units, yet MSMEs face structural barriers to adopting cleaner technologies. The ADEETIE scheme offers a comprehensive support mechanism—technical, operational, and financial—that directly addresses these pain points. AIFI is proud to be a strategic partner in this transformative journey, which not only ensures compliance with evolving energy norms but also accelerates industrial modernisation.”

The forging sector, particularly MSMEs, plays a vital role in supporting key segments such as automotive, defence, capital goods, and heavy engineering. Yet, the high energy intensity of forging processes has historically posed cost and environmental challenges.

Through this MoU, AIFI will act as the crucial link between forging enterprises and the government, facilitating access to fiscal incentives, energy audits, project guidance, and technological upgrades across India’s forging clusters.

This strategic alignment between AIFI and BEE sets a new benchmark in fostering green growth in Indian manufacturing, empowering enterprises to reduce their energy footprint, enhance operational productivity, and support India’s national sustainability and Net Zero targets.