NEW DELHI: Union minister Nitin Gadkari on Friday invited MSMEs to avail concessional debt finance to install rooftop solar for business efficiency.
The Minister for Micro, Small and Medium Enterprises (MSMEs) and Road Transport & Highways said rooftop solar offers an excellent value proposition to MSMEs by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost.
Addressing a programme virtually, Gadkari said, "I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops."
The minister observed that a large amount (average Rs 8 and higher per unit) is being paid by the MSMEs for power consumption, which contributes to up to one-fifth of the overall production costs.
"To assist MSMEs in implementing rooftop solar projects, the ministry is working with the World Bank on a credit guarantee program to make financing accessible to unrated MSMEs. Considering the rates of solar power from large utility power plants have come down to a record Rs 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses," he said.
Addressing the event, Junaid Ahmad, Country Director India, World Bank, said the World Bank is committed to the cause of MSMEs and an investment in this industry will aid India's aim to become 'Aatmanirbhar' or 'self-reliant'.
"By facilitating MSMEs to decarbonise their power consumption in a sustainable manner, India can achieve a twin objective of greening the economy and uplifting MSMEs to become highly competitive by reducing its power costs," he added.
The Minister for Micro, Small and Medium Enterprises (MSMEs) and Road Transport & Highways said rooftop solar offers an excellent value proposition to MSMEs by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost.
Addressing a programme virtually, Gadkari said, "I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops."
The minister observed that a large amount (average Rs 8 and higher per unit) is being paid by the MSMEs for power consumption, which contributes to up to one-fifth of the overall production costs.
"To assist MSMEs in implementing rooftop solar projects, the ministry is working with the World Bank on a credit guarantee program to make financing accessible to unrated MSMEs. Considering the rates of solar power from large utility power plants have come down to a record Rs 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses," he said.
Addressing the event, Junaid Ahmad, Country Director India, World Bank, said the World Bank is committed to the cause of MSMEs and an investment in this industry will aid India's aim to become 'Aatmanirbhar' or 'self-reliant'.
"By facilitating MSMEs to decarbonise their power consumption in a sustainable manner, India can achieve a twin objective of greening the economy and uplifting MSMEs to become highly competitive by reducing its power costs," he added.
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7 Comments on this Story
 | Manu20 minutes ago Though the hon. Minister has suggested a good way for reducing power bills and promoting solar use, I personally think it is government duty to reduce power tariff and only government could be efficient in reducing power tariff because they are able to get per ke at the least cost as compared to an industry or msme who has to shell out more to reduce power cost. Also given the economic confusion caused by covid not many would be interested to invest in solar energy...staying open itself a challenge. |
| News 1 hour ago we can also use vertical wind turbines which are less costly and easy to install. also maintenance cost is low than the solar panels |
 | Gautam Mazumder4 hours ago Our politicians and govt. babu's are famous for making grand statements. How many MSME's have a roof worth the solar panels mounting and then the solar part cannot supply the loading without the grid support. so why the additional problems, there will be many pains and hardly any gains at the level suggested. its blocked money and if that money is made use of as working capital, the MSME will have some earning at least, greater than the savings proposed. The govt. rules regarding the tenders are still to see the light of the day as the implementation in all the sectors, it was so vague that the same has been proposed for the new tenders and not for the existing ones, the idea was to make the money available when needed, but everybody has proposed for applicability in the new tenders and not for the ones which are operational. |