Good News for Farmers! Government to Solarize 1 Lakh Electric Agricultural Pumps

According to Aman Arora, minister for new and renewable energy sources, the Punjab government will solarize one lakh electric agriculture tube-wells in order to encourage the use of clean and green energy in the agricultural sector. He said that this large-scale project will help preserve natural resources and save about Rs 200 crore in annual electricity subsidies.

The energy sector is undergoing an unparalleled shift. The Minister stated that this ground-breaking move would open the door to more affordable and environmentally friendly energy with the implementation of this project. Punjab will gain four main advantages, including a reduction in the cost of subsidies to the state exchequer, a decrease in the need for power supply, a decrease in the cost of agricultural products, and the preservation of the environment by switching to solar energy instead of conventional power.

Arora said the Punjab Energy Development Agency (PEDA) has already issued an electronic invitation for bids for the selection of Solar Power Generators (SPGs) for the feeder level solarization of 25,000 grid-connected agricultural pumps.

13.88 lakh farmers in the state of Punjab receive free electricity for their grid-connected tube wells for irrigation, with the Punjab government bearing approximately Rs 7000 crore in subsidy costs.

The Minister added that the AAP government's united efforts resulted in the Union Government accepting a proposal for the solarization of one lakh electric tube wells that are linked to the grid and allocating the goal of one lakh pumps to the state.

Arora stated, that at present, the agriculture power tariff is Rs 5.66 per unit, but if these 1 lakh tube-wells are solarized, the rate per unit would be substantially lower, saving the government a total of Rs 200 crore yearly in subsidy.

Sumeet Jarangal, chief executive officer of PEDA, said that the Union Government would grant a subsidy of Rs 1.05 crore per megawatt for the construction of solar power plants for the solarization of tube wells. He also added that the project will be carried out through private investment.

A total of around Rs. 1030 crore would be spent on the installation of solar power plants with a capacity of about 215 MW, of which Rs 804 crore will come from private investors. The remaining Rs 226 crore will be paid as a subsidy by the Central government.