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Andhra Pradesh pushes energy efficiency drive for small manufacturers

The state is conducting energy and water audits across selected MSME units to slash operational costs and promote sustainable manufacturing practices. The initiative aims for completion by March 2027.

LSN India · 9 November 2026

Andhra Pradesh pushes energy efficiency drive for small manufacturers

Andhra Pradesh is intensifying efforts to make its micro, small and medium enterprises (MSMEs) more energy-efficient as part of a broader push toward sustainable industrial growth. State officials said energy and water audits are being systematically conducted across selected manufacturing units to identify efficiency opportunities and reduce operational expenses.

The audits are designed to help MSME operators identify wastage points and implement cost-effective measures for energy conservation. By optimizing power and water consumption, participating units can lower their manufacturing costs while simultaneously reducing their environmental footprint—a dual benefit seen as critical for long-term competitiveness.

The Energy Efficiency Services Limited (EESL), the nodal agency implementing the programme, has set March 2027 as the target completion date for the audit cycle. Officials said the initiative aligns with broader national goals of promoting cleaner, more efficient industrial operations across India's MSME sector, which employs millions and contributes significantly to economic output.

State authorities believe the programme will encourage smaller manufacturers to adopt sustainable practices while maintaining profitability. Officials added that the audits serve as a stepping stone for MSMEs to transition toward renewable energy adoption and modern manufacturing standards.