MNRE implements installation of 10,000 nos. of solar photovoltaic water pumping systems

The implementation process to install of solar photovoltaic water pumping systems has finally received a go ahead from the Ministry.  MNRE will now install 10000 nos. of solar photovoltaic water pumping systems throughout the country. These SPV pumping system will be installed to meet the irrigation requirement all over India through National Bank for Agriculture and Rural Development (NABARD). For this project Rs. 228 crores have been granted from National clean Energy Fund (NCEF) to MNRE.

An Internal Review Committee of the Ministry will review and modification this scheme at an interval of six months. The total duration of the project is said to be 2 years. NABARD is restricted to implement the programme through only MNRE empanelled manufacturer and not any Channel partner. The main aim of the scheme is to install SPV pumping systems that can easily meet the irrigation requirements for land holdings for small and marginal farmers.

Due to lack of grid power electricity, a large number of diesel pump sets are being deployed every year in the country. This project involves subsidy with mandatory loan to individuals by regional rural banks and other commercial banks at nominal interest rate. It will obviate farmers from long distance travels to procure and transport diesel. It will increase the cropping intensity of the states through this intervention provided.

Ministry will provide up to 2% of Central Financial Assistance (CFA) as service charges to NABARD. It will also provide 40% of the system cost as subsidy limited to Rs. 76 per watt peak (Wp) capacity of Solar water pumping system having solar module capacity up to 5kWp, routed through NABARD to RRB's and Commercial banks. 20%of the cost of the pumping systems will be beneficiary contribution and remaining amount will be extended as loan by the banks at nominal rate of interest to the beneficiary.

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