Solar Mission gets Rs 5,000 Crore Boost

The Cabinet Committee on Economic Affairs (CCEA) has approved scaling up of the budget for implementing Grid Connected Rooftop systems up to 2019–20 under the National Solar Mission (NSM) from Rs 600 crore to Rs 5,000 crore. The move is aimed at supporting installation of 4,200 MW solar rooftop systems over the next five years. A capital subsidy of 30 per cent will be provided for general category states and union territories (UTs) and 70 per cent for special category states/UTs, such as the northeastern states, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep, and Andaman & Nicobar Islands.

There will be no subsidy for industrial establishments in private sector since they are eligible for other benefits, such as accelerated depreciation, custom duty concessions, excise duty exemptions and tax holiday, the Government of India has notified.

“This capacity of 4,200 MW will come up through the residential, government, social and institutional sector (hospitals, educational institutions). Industrial and commercial sector will be encouraged for installations without subsidy,” the government stated. It added that the move “will create the market, build confidence of the consumers and enable the balance capacity through market mode to achieve the target of 40,000 MW by 2022”. The government has revised NSM’s target from 20,000 MWp to 1,00,000 MWp by 2022. Out of this, 40,000 MWp is to come through grid-connected rooftop systems.

Source: www.indianexpress.com