Decarbonisation of steel industry in India with ADEETIE and ENCON solutions

India’s steel industry stands at the center of the nation’s decarbonisation challenge — and its opportunity. With the Government announcing a ₹5,000 crore National Mission for Sustainable Steel, the message is clear: the sector must become cleaner, greener, and globally competitive.

This initiative is not just a policy announcement; it is a signal for transformation. And the push does not stop at steel — with the launch of the ADEETIE Scheme for MSMEs, India is ensuring that industries across sectors adopt energy-efficient industrial technologies for a low-carbon future. Together, these measures mark the beginning of a larger journey toward the decarbonisation of steel industry in India.

ADEETIE: A Catalyst for MSME Transformation

Backed by the Bureau of Energy Efficiency (BEE) under the Ministry of Power, ADEETIE is a ₹1,000 crore initiative (FY 2025–28) designed to remove barriers that prevent MSMEs from adopting sustainable technologies.

Key Features

🔹 Interest Subvention on Loans

1. 5% for Micro & Small Enterprises
2. 3% for Medium Enterprises
3. On loans from ₹10 lakh to ₹15 crore

🔹 Technical Handholding

1. Investment Grade Energy Audits (IGEA)
2. Detailed Project Reports (DPRs)
3. Monitoring & Verification (M&V) of savings

🔹 Cluster-Based Approach

Covering 60 clusters across 14 sectors, including steel re-rolling, forging, foundry, glass, ceramics, textiles, food processing, and more.

🔹 Savings Threshold

Projects must achieve at least 10% energy savings to qualify.

For MSMEs in energy-intensive industries, ADEETIE is more than just a government scheme — it is a pathway to sustainable steel production in India and a competitive advantage in global markets.

The Barriers ADEETIE Solves

For decades, MSMEs have faced challenges such as:

  • High capital expenditure for advanced heating and combustion systems

     

  • Lack of technical expertise to evaluate ROI

     

  • Uncertainty about performance without verified results

ADEETIE directly addresses these issues by reducing upfront costs, providing technical expertise, and ensuring verified results. This creates a strong foundation for scaling industrial decarbonisation technologies across the country.

ENCON Thermal Engineers: Turning Policy into Profitable Reality

At ENCON Thermal Engineers Pvt. Ltd., we have been pioneers in industrial heating and energy conservation for more than four decades. Our proven solutions already deliver what both the National Mission for Sustainable Steel and the ADEETIE program envision: efficient, cleaner, and future-ready operations.

Our Proven Technologies

🔹 Regenerative Burners

Capable of recovering up to 80% of flue gas energy, these burners can achieve up to 50% fuel savings with an ROI of less than one year. You can explore more about our Regenerative Burners here.

🔹 Self-Recuperative Burners

Compact and decentralized, they offer reliable energy recovery systems ideal for distributed applications. Learn more about Self-Recuperative Burners.

🔹 Oxy-Fuel Combustion

Enables up to 40% net fuel savings, higher flame temperatures, and lower CO₂ emissions per ton of steel. Discover the full benefits of Oxy-Fuel Technology.

🔹 Hydrogen-Ready Burners

Future-proof technology designed to work with the next generation of zero-carbon fuels. Know more about our Hydrogen-Ready Burners.

Our Financial & Technical Advantage

🔹 ESCO Financing Models

Minimal upfront cost, shared savings, and lease-based options. ENCON also provides specialized guidance through its ESCO financing model, helping industries adopt energy-efficient solutions with reduced financial risk.

🔹 Audit-to-Implementation Support

From energy audits to DPR preparation and M&V, ENCON ensures MSMEs meet ADEETIE requirements seamlessly.

Example: How ADEETIE + ENCON Work Together

Consider an MSME steel re-rolling unit in a designated cluster:

  • Annual fuel bill: ₹2 crore

  • ENCON installs regenerative burners under ADEETIE financing support

  • Investment: ₹1.2 crore (loan eligible for 5% subvention)

  • Energy savings: 40% (₹80 lakh/year)

  • Payback: < 2 years, with CO₂ reduction and higher furnace productivity

This is not just compliance — it is profitable decarbonisation of steel industry in India.

Why Act Now?

🔹 Policy Push is Here

With ₹5,000 crore for sustainable steel production in India and ₹1,000 crore under ADEETIE, momentum is unmatched.

🔹Technology is Ready

ENCON’s systems are tested and deployed in India’s toughest industrial environments.

🔹Financial Risks are Reduced

With loan subventions, audits, and ESCO models, barriers are gone.

The only question left is: when will your business join the transformation toward the decarbonisation of steel industry in India?

Conclusion: Partner with ENCON for ADEETIE Success

India’s policy landscape is finally aligned with advanced industrial decarbonisation technologies and financing models. With ADEETIE, MSMEs can adopt energy-efficient industrial technologies without heavy financial risk. With ENCON, they gain a trusted partner to deliver efficiency, lower emissions, and faster ROI.

The journey of decarbonisation of steel industry in India is not decades away — it starts today.

✦ Ready to leverage ADEETIE for your business?
📩 Email: RFQ@encon.co.in
🌐 Visit: www.encon.co.in

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