Nitin Gadkari Urged MSMEs to Install Solar-Rooftop for Business Efficiency

Nitin Gadkari, Minister for Micro, Small and Medium Enterprises (MSMEs) and Road Transport & Highways has asked MSMEs to install solar-rooftop, thereby bringing down their cost of electricity consumption which on an average, is up to one-fifth of their operations cost, as reported by PTI.

While addressing a programme, Gadkari said, "I believe there is a strong business case for MSMEs to install rooftop solar, and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops."

As the PTI quoted, the minister observed that a large amount (Rs 8 on an average, and higher per unit) is being paid by the MSMEs for power consumption, which contributes up to one-fifth of the overall production costs.

In the same programme, as per PTI, he further commented: “To assist MSMEs in implementing rooftop solar projects, the ministry is working with the World Bank on a credit guarantee programme to make financing accessible to unrated MSMEs. Considering the rates of solar power from large utility power plants have come down to a record INR 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses.”

Speaking at the event, Junaid Ahmad, Country Director, India, World Bank, said the World Bank is committed to the cause of MSMEs and an investment in this industry will aid India's aim to become 'Aatmanirbhar' or 'self-reliant', as mentioned by PTI.

“By facilitating MSMEs to decarbonise their power consumption in a sustainable manner, India can achieve a twin objective of greening the economy and uplifting MSMEs to become highly competitive by reducing its power costs," he added.

MSMEs in India, accounts for more than 45% of total manufacturing output, contributes around 9% to GDP and accounts for more than 40% of total exports of the country. There is total around more than 40 million such enterprises in India (which is 2nd largest after China).