No subsidy on the solar project, now financial assistance will be available, CM’s big announcement on solar power project

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No subsidy on the solar project, CM's big announcement on solar power project

The state government has made a big announcement on setting-up a solar power project. Those setting up projects will no longer get subsidy.

Instead of subsidy, the state government will give financial assistance, so that economic recovery can be done after the completion of the project.

Financial assistance to the project setup will be up to 40 percent of the total cost. That is, the estimated cost of a one-megawatt project to be built in 15 bighas is about four crore rupees.

Out of this, the state government will provide financial assistance of about one crore 40 lakh rupees. Although earlier talk of a 40 percent subsidy was being talked about.

The Chief Minister had also announced during the budget that the state government would provide subsidy on project construction but has now converted it into financial assistance.

No subsidy on the solar project, CM's big announcement on solar power project

The special thing is that the government can provide financial help for all the projects from 100 kW to 2 MW in the coming days.

The power generated from these projects will be purchased through public transmission and will be supplied further at a fixed price.

If we understand the initial plan of the government, then in four to five years the projects will become completely debt free by the sale of electricity.

The state government has currently fixed the price of electricity generated from solar energy at Rs 3.76.

The government’s contract in these projects will be for 25 years and after the completion of 25 years, 30 percent of revenue will have to be given to the state.

Chief Minister Sukhwinder Singh Sukhu has said that the state government had announced this in the budget.

Now the work will be carried forward by implementing this announcement. An important meeting of the Energy Department has also been organized in this direction.

Government will help on the Solar Project

In the meeting, the Chief Minister ordered that the government will now provide financial assistance to the potential entrepreneurs of the state to set up solar power projects of 100 kW to 2 MW capacity. This assistance will be up to 40 percent.

This help will help entrepreneurs to set up solar power projects. He said that the state government would also provide assistance from banks to finance these projects.

Chief Minister Sukhwinder Singh Sukhu instructed the officials of the Energy Department to prepare the outline of the scheme soon, so that more and more youth can take advantage of it.