New Delhi: The government think tank NITI Aayog has recommended setting up a National Project Management Agency (NPMA) to guide India’s micro, small, and medium enterprises (MSMEs) towards green energy adoption, as the country moves toward its net-zero carbon emissions target by 2070.
The recommendation comes as part of a broader strategy to decarbonize key industries and reduce greenhouse gas emissions, while supporting MSMEs in adopting sustainable and energy-efficient practices.
National Project Management Agency for MSMEs
According to NITI Aayog’s ‘Roadmap for Green Transition of MSMEs’, the NPMA should function as an independent consultative and advisory body, monitored through an inter-ministerial committee.
The agency would be responsible for:
- Driving on-ground implementation of green transition programs
- Collaborating with MSME clusters via a transparent cluster selection process
- Floating Expressions of Interest (EoI) to identify willing MSME clusters and industrial associations
- Facilitating the creation of Special Purpose Vehicles (SPVs) for clusters to participate in green energy initiatives
The report emphasizes the importance of effective coordination between government agencies and MSME clusters to ensure successful adoption of green technologies.
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Sector-Specific Decarbonisation Plans
Cement Sector
In a separate report titled ‘Roadmap for Cement Sector Decarbonisation’, NITI Aayog proposed:
- Increased use of Refuse Derived Fuel (RDF) from municipal solid waste to replace coal in thermal heating
- Adoption of supplementary cementitious materials or clinker substitutes
- Scaling up Carbon Capture, Utilisation and Storage (CCUS) to capture process emissions
The report estimates that implementing these measures could reduce 80–85% of greenhouse gas emissions in the cement sector by 2070.
Aluminium Sector
For the aluminium industry, the ‘Roadmap for Aluminium Sector Decarbonisation’ suggests a three-stage transition:
- Short-term (till 2030): Shift to round-the-clock renewable energy (RE RTC) and grid connectivity
- Medium-term (2030–2040): Adoption of nuclear power
- Long-term (post-2040): Integration of CCUS with captive coal-based generation
These steps aim to gradually reduce the carbon footprint of the aluminium sector while maintaining energy reliability.
Importance of MSMEs in India’s Green Transition
India’s MSME sector comprises 69 million units, with about 68.6 million being micro enterprises. Key contributions include:
- 45.7% of India’s exports
- 30% share in Gross Value Added (GVA) to GDP
- 36.2% share in manufacturing
- Employing approximately 250 million people
MSMEs are heavily dependent on fossil fuels, generating nearly 135 million tonnes of CO2 emissions in 2022. However, challenges such as limited capacity for green projects, lack of financing, awareness gaps, and market uncertainties hinder the sector’s transition to sustainable energy.
India’s Net-Zero Commitment
India has committed to achieving net-zero emissions by 2070, reducing carbon intensity by 45% by 2030, and increasing non-fossil energy capacity to 500 GW by 2030. Industrial decarbonisation, particularly among MSMEs, is seen as a critical driver for meeting these goals.
The NITI Aayog reports advocate for a sector-specific, roadmap-driven approach to accelerate green adoption, ensuring that industrial growth aligns with India’s climate ambitions.
Way Forward
The creation of the National Project Management Agency could play a pivotal role in enabling MSMEs to adopt renewable energy, reduce carbon emissions, and improve operational efficiency. By supporting clusters through transparent processes, technical guidance, and financing facilitation, the NPMA aims to make India’s green transition inclusive, scalable, and measurable.
