Govt announces ambitious Solar Power Capacity but withdraws subsidy to industries
Updated: Dec 15, 2015 04:10:36pm
New Delhi, Dec 15 (KNN) While the Government has set a target of 1 lakh MW of solar power by the year 2022, the subsidy available to industry to set up solar power plant for in house use has been withdrawn. Till some time back, the subsidy of 30% was available to the industries for setting up solar power plants.
Use of solar energy has excellent scope in industries particularly to supplement grid power, which is unreliable particularly in LT Electricity lines from which MSMEs draw the required power. The availability of subsidy coupled with a generous depreciation allowance encouraged many MSME entrepreneurs to install solar power plants on ‘Roof Top’s. The use had been far more widespread but for the unreliable equipment and teething troubles. Withdrawal of the subsidy to industries will abort the initiatives of the MSMEs to use alternative source of power.
As per the year-end review of the Ministry of New and Renewable Energy, 15% Government subsidy would be provided for off-grid Rooftop solar panels for non-commercial and non-industrial categories. New loan scheme to promote rooftop solar power projects has also been announced by IREDA. The scheme will provide loans at interest rates between 9.9 to 10.75 per cent. And this way, the Government is looking forward to set up 40 GW or 40, 000 MW capacity of solar power by the year 2022.
MSMES are already been focused as an sector where significant conservation of power is possible and MSMEs located particularly in rural and far flung areas could be the ideal candidates for off grid solar power. In fact, sometime back industries in far flung areas were being considered to be supported to produce solar power at economic scale and supply to the community around, thus saving the high cost of transmission of grid power. With deletion of industries from the list of preferred producers, it appears policy makers are thinking otherwise.
Reserve Bank of India has issued revised guidelines for all scheduled commercial banks making significant in-roads for renewable energy in the priority sector lending. Bank loans up to a limit of Rs 15 crore are allowed for purposes like solar based power generators, biomass based power generators, wind mills, micro-hydel plants and for non-conventional energy based public utilities like street lighting systems, and remote village electrification. For individual households, the loan limit is Rs 10 lakh per borrower. Whether the concessional loan will also be available to the MSME sector is a moot question. (KNN/ DB)
Use of solar energy has excellent scope in industries particularly to supplement grid power, which is unreliable particularly in LT Electricity lines from which MSMEs draw the required power. The availability of subsidy coupled with a generous depreciation allowance encouraged many MSME entrepreneurs to install solar power plants on ‘Roof Top’s. The use had been far more widespread but for the unreliable equipment and teething troubles. Withdrawal of the subsidy to industries will abort the initiatives of the MSMEs to use alternative source of power.
As per the year-end review of the Ministry of New and Renewable Energy, 15% Government subsidy would be provided for off-grid Rooftop solar panels for non-commercial and non-industrial categories. New loan scheme to promote rooftop solar power projects has also been announced by IREDA. The scheme will provide loans at interest rates between 9.9 to 10.75 per cent. And this way, the Government is looking forward to set up 40 GW or 40, 000 MW capacity of solar power by the year 2022.
MSMES are already been focused as an sector where significant conservation of power is possible and MSMEs located particularly in rural and far flung areas could be the ideal candidates for off grid solar power. In fact, sometime back industries in far flung areas were being considered to be supported to produce solar power at economic scale and supply to the community around, thus saving the high cost of transmission of grid power. With deletion of industries from the list of preferred producers, it appears policy makers are thinking otherwise.
Reserve Bank of India has issued revised guidelines for all scheduled commercial banks making significant in-roads for renewable energy in the priority sector lending. Bank loans up to a limit of Rs 15 crore are allowed for purposes like solar based power generators, biomass based power generators, wind mills, micro-hydel plants and for non-conventional energy based public utilities like street lighting systems, and remote village electrification. For individual households, the loan limit is Rs 10 lakh per borrower. Whether the concessional loan will also be available to the MSME sector is a moot question. (KNN/ DB)
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