To promote the use of clean and green energy in the agriculture sector, the Punjab government has decided to solarise one lakh existing electric agriculture tube-wells in the state, said Minister for New and Renewable Energy Sources, Aman Arora on Monday. He said this ambitious project will save around Rs 200 crore per annum on account of power subsidy, besides going a long way to save natural resources.

“The energy sector is transitioning in an unprecedented way. This revolutionary step will pave a way to ensure cheaper and green energy,” said the Minister, adding that with the implementation of this project. Punjab will avail four major benefits including reducing the burden of subsidy on the state exchequer, reducing the demand for power supply, reduce input cost on agriculture, besides, saving the environment by replacing conventional power with solar energy.

Arora said that Punjab Energy Development Agency (PEDA) has already invited e-bids for the selection of Solar Power Generators (SPGs) for feeder level solarisation of 25000 grid-connected agriculture pumps. The Punjab government provides free power to 13.88 lakh farmers of the state for their grid-connected tube-wells for irrigation and bears the expenditure of about Rs 7000 crore as a subsidy.

The Minister said that a proposal for solarisation of one lakh grid-connected electric tube-wells had been sent to the Union Ministry of New and Renewable Energy and with the concerted efforts of the AAP government, the Union Government has accepted it and allocated the target of one lakh pumps to the state.

Arora said that at present, the agriculture power tariff is Rs 5.66 per unit and after the solarisation of these one lakh tube-wells, the rate per unit would be much lower resulting in saving the government’s subsidy to the tune of Rs 200 crore annually.

The Union Government will provide a subsidy of Rs 1.05 crore per megawatt for setting up of solar power plants for solarisation of the tube-wells, said Chief Executive Officer, PEDA, Sumeet Jarangal, adding that the scheme will be implemented through private investment.

Solar power plants of around 215 MW will be set up for solarisation of one lakh pumps with a total cost of about Rs1030 crore, of which, Rs 804 crore will be generated from private investors, while the Central government as its share will pay Rs 226 crore as subsidy, he added.