The Budget 2018-19 has proposed to solarise agriculture pumps which may attract investment of Rs 1,40,000 crore, minister of state for power and renewable energy R K Singh said on Friday.
The finance minister has announced the Kusum scheme in the Union Budget to promote use of solar energy in agriculture sector, Singh said. “To begin with, the scheme provides for 17.5 lakh off grid solar pumps. Ultimately we propose to solarise every agricultural pump and apart from this, we will be connecting all the grid connected pumps with solar power,” he said while interacting with reporters a day after the budget.
“On the cost of the panel, the farmer will get assistance in the form of a 30 per cent capital subsidy from the Centre, another 30 per cent will come from the state. Another 30 per cent of the cost will be financed and effectively the farmer will have to bear just 10 per cent of the cost,” the minister said.
The Central Financial Assistance (CFA) for the scheme will be Rs 48,000 crore for 10 years. A similar amount will have to be parked by states and financing institutions, Singh said.
“The solar panels which we will give will have twice the capacity of a grid one. So, if the capacity of a grid connected pump is 5 horse power, the solar panel will generate twice the amount,” the minister said. Farmers can sell the balance power to the grid, he added. With this the total investment in the scheme would be close to Rs 1,44,000 crore after approval from the Union Cabinet, he said.