AP Sets Net-Zero Goal for MSME Sector with Centre’s Support

Vijayawada: Andhra Pradesh is stepping up efforts to transform its Micro, Small and Medium Enterprises (MSMEs) into globally competitive, energy-efficient and environmentally sustainable manufacturing units, with a renewed focus on transitioning towards Net-Zero emissions in partnership with the Union Government.

The State's successful collaboration with the Union Ministry of MSME and Energy Efficiency Services Limited (EESL), under the Ministry of Power, has earned national recognition for its efforts to introduce and implement EESL's advanced energy-efficiency technologies and energy department support for ensuring reliable, quality power supply. Infact AP is one of the leading state in taking up electricity related infrastructure on a big scale to provide 24/ 7 power supply for MSMEs to enhancing the productivity.

Experts have appreciated the state for undertaking country's largest energy-efficiency interventions in the MSME sector, combining economic growth with environmental sustainability.

"With this recognition and the progress achieved so far, our next objective is to facilitate the transition of MSMEs towards Net-Zero emissions with the support of the Union Government," said Dr N. Yuvaraj, Principal Secretary, Industries and Commerce Department.

He said the department was working on a strategic roadmap, in line with Chief Minister N. Chandrababu Naidu's vision, to make Andhra Pradesh's MSME products competitive with those from leading industrial States such as Maharashtra, Madhya Pradesh, Haryana and Tamil Nadu, while preparing them to meet global market standards and India's climate commitments.

Ahead of the forthcoming CII Partnership Summit in Visakhapatnam, Dr Yuvaraj reviewed the implementation of programmes and progress of MoUs through an online meeting with M. Viswa,CEO of the MSME Development Corporation (MSME-DC), and Akhilesh Kumar Dixit, CEO of EESL. He stressed the need to complete all commitments within the stipulated timelines.

A major initiative in this direction is the comprehensive Energy and Water Audit programme being undertaken by MSME-DC in collaboration with EESL under an MoU signed at the CII Partnership Summit in Visakhapatnam on November 14, 2025. The programme aims to identify opportunities to reduce energy and water consumption, lower operational costs, improve resource efficiency and promote sustainable manufacturing.

Chief Minister N. Chandrababu Naidu inaugurated the programme at the MSME Growth Enclave in Vijayawada on May 25, 2026, in the presence of Industries and MSME Ministers T.G. Bharat and Kondapalli Srinivas.

EESL CEO Akhilesh Kumar Dixit informed that audits were underway in selected MSME units having high-tension connections with a contract demand exceeding 100 kVA. The remaining work is progressing, with EESL targeting completion by March 2027. He assured continued technical support to Andhra Pradesh in adopting globally proven technologies.

The implementation of recommended measures is expected to reduce production costs, strengthen MSME competitiveness, improve energy and water conservation and contribute to India's Net-Zero objectives.

Viswa said Andhra Pradesh had also strengthened the MSME ecosystem through formalisation, credit support, infrastructure, capacity building, technology upgradation and market linkages. Institutional credit to MSMEs in the State crossed approximately ₹1.17 lakh crore in FY 2025-26.

The State has additionally introduced the ₹300-crore AP Chief Minister's Entrepreneurship Programme (AP CMEP), a credit-linked subsidy initiative targeting 3,500 MSMEs in manufacturing and knowledge-based sectors, with the potential to generate substantial employment opportunities.

The twin focus on industrial competitiveness and environmental responsibility is expected to position Andhra Pradesh's MSMEs for a more sustainable and globally competitive future.

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The Hans India