Telangana: Centre reduces solar subsidy

Hyderabad: The Union Ministry of New and Renewable Energy (MNRE) is cutting subsidies for solar power units. A few days ago the Union power ministry issued orders removing the 30 per cent subsidy to commercial solar plants. 

Now the Union power ministry has revised the subsidy for solar pumping systems. The Centre was giving 30 per cent subsidy to solar pumping systems irrespective of horsepower. But now the ministry has divided it into three slabs and gives a subsidy of 20% to 30% depending on horsepower. 

According to the revised subsidy scheme for solar water pumping systems for capacity up to 1 hp the capital finance assistance (CFA) is 30 per cent of cost, for capacity ranging from 1 hp to 3 hp the CFA is at 25 per cent and for capacity ranging 3 hp to 5 hp the CFA is 20 per cent. 

The ministry said this pattern will be applicable in absolute terms to all schemes of MNRE on solar pumps and projects sanctioned by MNRE. The ministry said the revised CFA pattern is applicable from 2017-18. 

In the beginning to encourage solar power the Centre had extended concessions. Now many states are giving importance to solar power and the cost of solar panels have come down. Keeping this in view the Centre is cutting subsidies to solar power units.

Meanwhile, to encourage farmers to set up solar pump sets the Centre has extended 30 per cent subsidy for solar pump sets. But the case in Telangana is different. Farmers are not showing interest in solar pump sets. Officials said when the government is supplying free power to the agriculture sector why should farmers invest in solar pump sets. Officials said the subsidy cut will make no difference to Telangana farmers.