The Association of Indian Forging Industry (AIFI) has joined hands with the Bureau of Energy Efficiency (BEE), under the Ministry of Power, Government of India, through a Memorandum of Understanding (MoU). This collaboration marks a significant step towards promoting sustainable manufacturing practices in the forging industry, in line with the Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments (ADEETIE) initiative. The MoU was formalized in the presence of the Honourable Union Minister of Power and Housing & Urban Affairs, Manohar Lal.
The ADEETIE scheme, launched by the Ministry of Power and managed by BEE, is designed to help MSMEs in 14 energy-intensive industries, including forging, implement cutting-edge, energy-efficient technologies. This initiative provides several key benefits, including interest subsidies on technology adoption loans, support for comprehensive energy audits, guidance on project implementation, and ongoing monitoring. A dedicated project management team and banking partner will ensure smooth execution of the program.
Yash Munot, President of AIFI, shared his thoughts on the collaboration, stating, “This partnership with BEE is a significant milestone for the Indian forging sector. Being one of the most energy-intensive industries, forging stands to gain tremendously from the ADEETIE scheme’s support. The financial and technical assistance will help MSMEs modernize their operations, bringing us closer to a globally competitive and environmentally responsible forging ecosystem. AIFI is committed to engaging our members and maximizing this opportunity to contribute to India’s sustainability goals and industrial growth.”
The ADEETIE scheme is backed by a ₹1,000 crore budget, which is expected to support over ₹9,000 crore in investments, including ₹6,750 crore in loans for MSMEs. Forging units will benefit from interest rate subsidies of 5% for micro and small enterprises, and 3% for medium enterprises, helping them overcome financial hurdles in adopting energy-efficient technologies.
Deven Doshi, Chairman of AIFI’s Government Interface Committee, underscored the significance of energy efficiency in the forging sector. He said, “The forging industry’s MSME segment faces challenges in adopting cleaner and more efficient technologies. The ADEETIE scheme provides much-needed support across technical, operational, and financial areas. This initiative not only helps companies comply with energy standards but also ensures long-term industrial modernization.”
The forging industry, which plays a crucial role in India’s manufacturing and export ecosystem—especially in sectors like automotive, defence, and capital goods—has long struggled with high energy consumption, leading to cost and sustainability challenges. The ADEETIE scheme directly addresses these issues, offering a much-needed opportunity for MSMEs to integrate energy-efficient technologies. AIFI will serve as a vital link between the forging industry and government resources, helping companies access financial incentives and expert guidance for energy audits, project implementation, and more.
Through this MoU, AIFI will facilitate the widespread adoption of the ADEETIE scheme across forging clusters in India. This will ensure that forging enterprises, especially MSMEs, can access the financial and technical support needed for sustainable growth. This strategic partnership with BEE will significantly contribute to reducing the sector’s energy footprint, increasing productivity, and aligning with India’s broader sustainability objectives.
Founded in 1965, the Association of Indian Forging Industry (AIFI) is the oldest and largest forging association in India, representing the interests of the forging sector. The Indian forging industry plays a key role in driving the country’s manufacturing growth and is essential to the success of industries such as automotive, power, and general engineering. AIFI’s 200+ members produce a wide range of forged products including crankshafts, connecting rods, camshafts, automotive components, railway wheels, industrial valves, and more. The forging industry is a critical part of India’s industrial ecosystem, providing significant employment and supporting key sectors like automotive and defence.
For over six decades, AIFI has been the voice of the Indian forging industry, facilitating constructive dialogue between industry stakeholders and government bodies. India is the world’s second-largest producer of forgings, after China.
