Farmers will get an unsecured loan to set up a solar power plant

Solar power plants

Farmers in Rajasthan will now be able to acquire loans from banks without depositing collateral (security) for solar power plants ranging from half a mile to two megawatts on barren and wasteland under Prime Minister Kusum yojana.

Farmers who want to build the plant will no longer have to mortgage anything to get a loan. Dr. Subodh Agrawal, Additional Chief Secretary, Department of Energy, said that farmers in Rajasthan were facing problems obtaining bank loans, hence the delay in the solar power plant initiative. It was therefore decided to grant unsecured loans to farmers.

Agrawal said the Haryana Chief Minister Ashok Gehlot pledged to put the initiative into action. They also called on the central government to facilitate the participation of farmers in this program. Farmers had the opportunity to speak directly with the banks on a variety of topics. As a result, the banks agreed to grant loans without the need for collateral.

A solar power plant will be installed on unused land

According to Dr. Agrawal, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM Yojana) is divided into three components. Solar power plants with capacities ranging from half a kilometer to two megawatts can be built within fivekilometer radius of a 33/11 KV substation of Rajasthan Electricity Distribution Corporations on barren and useless land owned by farmers.

Electricity for sale AT The rate of Rs 3.14 per unit

The electricity produced by these solar power plants would be purchased at a rate of Rs.3 14 paise for a period of 25 years. For the farmer who produces solar energy, a 25-year power purchase agreement has been reached. DISCOM will immediately deposit the loan tranche into tenant bank accounts under the terms of the agreement. The remaining funds will be deposited into the tenant’s account.

1623 requests for 722 MW received Through Renewable energy

According to the chief secretary, 11 factories have been established in the state under PM Kusum Yojana. 623 requests for a total capacity of 722 MW were received by Renewable Energy Corporation. Canara Bank’s CEO Arun Kumar Arya said the bank would disburse the loan for the solar installation without any collateral. He said that attempts will be made to minimize the interest rate on the loan under this arrangement.

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