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NITI Aayog Proposes ₹13,000 Crore Plan to Decarbonise MSMEs

24 January 20261 min read
ECONOMYNITI Aayog Proposes₹13,000 Crore Plan toDecarbonise MSMEs24 January 2026safalsetu.com

Why in the news

NITI Aayog proposed ₹13,000 crore of schemes to cut MSME emissions amid rising energy costs.

Key facts

  • MSMEs: about 30% of GDP, 250+ million jobs, 46% of exports.
  • Without decarbonising, firms risk lower export competitiveness.

The two proposed schemes

FeatureVGF schemeSolar rooftop scheme
Outlay₹6,000 crore₹7,000 crore (Phase-1)
PurposeEnergy-efficient technologiesCapital subsidy for green electricity
Support limitUp to 15% of project costRooftop systems up to 3 kW
BeneficiariesProjects chosen by competitive biddingAbout 8 lakh micro enterprises
Paid toOEMs directlyEnterprises directly
  • Solar scheme long-run outlay: ₹28,672 crore over 20 years; capex ₹21,109 crore.

Exam angle

  • VGF = Viability Gap Funding.

Test yourself

1. What is the proposed outlay of NITI Aayog's Viability Gap Funding scheme for MSME decarbonisation?

The VGF scheme carries a proposed ₹6,000 crore outlay.

2. Up to what share of total project cost is the proposed VGF capped at?

VGF is capped at 15% of total project cost.

3. The proposed MSME rooftop solar scheme covers installations up to what capacity?

The scheme backs rooftop solar up to 3 kW for about 8 lakh micro enterprises.