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NITI Aayog suggests setting up of national agency to implement green transition for MSMEs

by AIP Online Bureau | Jan 21, 2026 | Climate, Environment, Renewable Energy, Eco/Invest/Demography, Indian News, Policy | 0 comments

The NPMA should identify interested MSME clusters and industrial associations by floating an expression of interest (EoI) that details the cluster selection process for the implementation of identified solutions,” the report said, adding that MSME clusters can form Special Purpose Vehicles (SPVs) to take part in the green transition programme

New Delhi: Government think tank NITI Aayog on Wednesday recommended setting up a national project management agency to implement a programme for MSMEs’ transition towards green energy, as India aims to reach net zero carbon emission goal by 2070.

The Aayog, in its report on ‘Roadmap for green transition of MSMEs’, said the national project management agency (NPMA) should be an independent consultative and advisory entity, to be monitored through an inter-ministerial committee.

It suggested that the NPMA should be responsible for driving the on-ground implementation of the programme by closely working with MSME clusters through an effective and transparent cluster selection process.

“The NPMA should identify interested MSME clusters and industrial associations by floating an expression of interest (EoI) that details the cluster selection process for the implementation of identified solutions,” the report said, adding that MSME clusters can form Special Purpose Vehicles (SPVs) to take part in the green transition programme.

In a separate report titled ‘Roadmap for Cement Sector Decarbonisation’, the Aayog pitched for increasing the usage of Refuse Derived Fuel (RDF) from municipal solid waste for substituting thermal heating from coal.

It also recommended increased usage of supplementary cementitious materials or clinker substitutes and scaling up Carbon Capture, Utilisation and Storage (CCUS) in the cement industry for capturing CO2 in process emission.

“By using these three solutions, the Indian cement sector may reduce 80-85 per cent GHG emission by 2070,” the report said.

In another report titled ‘Roadmap for Aluminium Sector Decarbonisation’, it suggested a three-stage process to reduce the sector’s carbon footprint.

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