The state-run National Bank for Agriculture and Rural Development (Nabard), in a serious bid to give a much needed push for solar power projects, proposes to share 50% of the cost of installation upto a maximum of 20 demonstration solar power project units at important places. In addition, Nabard will extend support to the regional rural banks and cooperative banks for conducting awareness campaigns and organising credit camps at Rs 1,000 per campaign for a maximum of 20 programmes.
Nabard in its recent circular has asked regional rural banks and cooperative banks to replicate what the Aryavart Gramin Bank, Lucknow, UP has implemented a scheme on Solar Home Lighting System (SHLS). According to Nabard, the system is simple and has negligible operating cost. The energy generated can be used for domestic and business purposes. The expenditure on installation is one time affair, procedure is very simple and unit can be easily shifted from one place to another. Its maintenance cost is also low and is free from noise and pollution.
Nabard sources told FE that the scheme is successfully implemented by the Aryavart Gramin Bank in the area of its operations and people are encouraged to instal the facility in a big way. The bank has extended financial assistance to about 20,000 families for installation of Solar Home Lighting System.
The scheme is implemented through TATA BP Solar, which is a joint venture between TATA Power Company Ltd. and BP Solar, for providing ?Venus Solar Home Lighting System.?
The unit cost of the system is around Rs 13,520 including 15% down payment. As on June 30, the Aryavart Gramin Bank has sanctioned about 20,037 systems amounting to Rs 23.04 crore, of which 10,915 have been installed with a ground level credit disbursements of more than Rs.10 crore.
The bank proposes to cover 25,000 houses by October 3 which will increase its advances portfolio by about Rs 25 crore.