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IREDA to borrow Rs 48,000 cr for subsidised solar water pump scheme

Friday, 07 Dec 2018
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The Indian Renewable Energy Development Agency (IREADA) will be borrowing up to Rs 48,000 crore as part of the Centre’s contribution to the subsidised solar pump scheme announced in the Union Budget 2018-19.

The option is being considered after the Power Ministry and the Renewable Energy Ministry have not been able to convince the Finance Ministry of fund allocations. This has led to delay in implementation of Kisan Urja Suraksha evam Utthaan Mahaabhiyan (KUSUM)- the subsidised solar water pump scheme.

On a per pump basis the Centre will subsidise 30 percent of the cost, the state will do the same, and 30 percent of the amount will be as loan. The farmer has to give an upfront cost of 10 per cent and then pay the instalments to the bank.

The scheme requires a central financial assistance of Rs 48,000 crore for 10 years. Effectively the scheme envisaged is of Rs 1.44 lakh crore once it got the Cabinet nod.

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