The Association of Indian Forging Industry (AIFI) has signed a Memorandum of Understanding (MoU) with the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India, to advance sustainable manufacturing practices under the ADEETIE (Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments) scheme. The partnership will support the forging industry, one of the 14 energy-intensive MSME sectors, to adopt cutting-edge energy-efficient technologies.
The ADEETIE scheme includes interest subvention on loans, energy audits, implementation guidance, post-deployment monitoring, and a dedicated project management unit. With a total budgetary outlay of ₹1,000 crore, the scheme will support over ₹9,000 crore in anticipated investments, including ₹6,750 crore in prospective MSME lending. AIFI will serve as a vital link between forging enterprises and the government, facilitating access to fiscal incentives and technical guidance on energy audits, project formulation, and implementation.
In a major initiative to promote sustainability and reduce energy consumption in one of India’s most energy-intensive sectors, the Association of Indian Forging Industry (AIFI) has signed a Memorandum of Understanding (MoU) with the Bureau of Energy Efficiency (BEE). This collaboration marks a significant step toward enhancing energy management practices in the forging industry, which plays a crucial role in the country’s manufacturing ecosystem.
The (Indian Forging Industry) represents over 400 forging units in India and has been a proactive body in encouraging modernization and green growth. With this MoU, AIFI aims to introduce ISO 50001-based energy management systems in its member organizations, develop benchmarking standards, and drive awareness
About the MoU and Its Purpose
The MoU between AIFI and BEE aims to establish a structured framework for implementing energy efficiency measures across small, medium, and large forging units in India. The agreement includes provisions for conducting energy audits, facilitating capacity-building workshops, and introducing industry-specific energy-saving technologies. This partnership aligns with India’s national goals under the Perform, Achieve and Trade (PAT) scheme and the broader mission of reducing carbon emissions from industrial operations…(Energy).
Importance of Energy Efficiency in the Forging Industry
India’s forging industry is a major supplier to key sectors like automotive, railways, defence, and construction. However, it remains one of the highest energy-consuming sub-sectors in manufacturing. With over 400 forging units across the country, the need for sustainable energy practices has never been more urgent. The AIFI-BEE partnership will help bring energy efficiency into the core of forging operations, leading to cost savings, reduced carbon footprint, and improved competitiveness [#].
Role of AIFI in Driving Sustainable Transformation
The Association of Indian Forging Industry has been actively working with stakeholders to modernize the sector. This MoU with BEE further reinforces AIFI’s commitment to helping its member organizations adopt best practices in energy management, embrace green technologies, and work towards certifications like ISO 50001 [#]. With support from BEE, AIFI will also help develop benchmarking standards and create awareness campaigns tailored for forging units, especially in industrial clusters like Pune, Rajkot, Ludhiana, and Faridabad.
Bureau of Energy Efficiency’s Strategic Goals
The Bureau of Energy Efficiency (BEE), under the Ministry of Power, has played a central role in promoting energy conservation across industries. Through this MoU, BEE will extend its technical support and tools, such as energy performance indicators, training modules, and monitoring frameworks, specifically designed for the forging sector [#]. This collaboration will also contribute to India’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
Way Forward: Green Growth for the Forging Sector
The AIFI-BEE partnership is expected to unlock new avenues for energy-saving investments and policy support in the forging sector. It sets the stage for integrating cleaner technologies like electrification of furnaces, waste heat recovery systems, and digital energy monitoring platforms [#]. This strategic alliance will act as a model for other energy-intensive industries in India to follow, thereby contributing to the country’s vision of becoming a global hub for sustainable manufacturing.
Q1. What is the purpose of the MoU between AIFI and BEE?
The MoU aims to improve energy efficiency and reduce carbon emissions in India’s forging industry.
Q2. Who are the stakeholders involved in this agreement?
The stakeholders are the Association of Indian Forging Industry (AIFI) and the Bureau of Energy Efficiency (BEE).
Q3. How will the forging industry benefit from this MoU?
Forging units will benefit from energy audits, training programs, and support to adopt cleaner technologies.
Q4. Is this initiative part of any national energy policy?
Yes, it supports India’s goals under the Perform, Achieve and Trade (PAT) scheme and the Paris Agreement targets.
Q5. Which regions are expected to benefit most from this initiative?
Industrial hubs like Pune, Rajkot, Ludhiana, and Faridabad are expected to see the most impact.
