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Govt may hike fund allocation for solar scheme to Rs 5,000 cr

Press Trust of India  |  New Delhi 

The Union Cabinet is likely to take a call tomorrow on increasing the fund allocation to Rs 5,000 crore for the programme to promote grid connected rooftop and small solar projects.

"The Union Cabinet will review the scheme providing central financial assistance for grid connected rooftop and small solar projects in its meeting tomorrow," a source said.

The proposal has sought to increase allocation for the scheme to Rs 5,000 crore from Rs 600 crore in 12th Plan period (2012-17), the source added.

The Ministry of New and Renewable Energy's financial outlay for 12th plan is Rs 600 crore for grid interactive rooftop and small solar systems.

The government has set a target of 40,000 MW of grid connected rooftop solar power generation capacity by 2022 under the National Solar Mission.

About ten square meter space is required for installing one kWp of solar rooftop system. Rooftop solar system can help reduce electricity bills besides cutting down carbon emissions from conventional sources like coal.

The government is providing financial assistance of 15 per cent of the benchmark cost for installation of grid connected rooftop solar system/project on four categories of building -- residential, institutional, government and social sector.

Under residential class, all types of residential buildings are covered. The institutional category covers schools, health institutions including medical colleges and hospitals, educational institution (public & private) and R&D institutes.

The government category has central and state buildings covering all offices, PSUs and government owned societies, companies or organisations.

All Panchayati Raj buildings are also covered under this category.

In the social sector category, all community centres, welfare homes, old age homes, orphanages, common service centres, common workshop for artisans or craftsman, facilities for usage of communities and any other establishment for common use are eligible for financial assistance for installing grid connected rooftop solar system.

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First Published: Tue, September 08 2015. 22:42 IST