Rajasthan Chief Minister Ashok Gehlot has written to the Centre seeking support for easy finance of PM-KUSUM projects in the state. In a letter dated July 26 to Minister of Power and New & Renewable Energy RK Singh, the CM raised the issue of challenges being faced by KUSUM applicants in availing loans from banking institutions.
“I want to draw your attention towards the challenges being faced by the PM KUSUM Component-A scheme in the state, for its first phase, applicants willing to set up a solar power plant have been selected…..For the above scheme’s Component-A, the progress is slow compare to the target due to non-availability of loans to farmers by the banks,” CM Gehlot said in his letter.
Gehlot raised the collateral issue faced by the loan applicants. He said that if the banks agree to accept the project, the project land and the revenue from the project as collateral, it will resolve the issues faced by the farmers.
“The success of this scheme started by the Prime Minister for the welfare of farmers is not possible without the participation of banks and financial institutions,” said Gehlot.
Rajasthan Chief Minister has asked the Renewable Energy Minister (GoI) to raise the issue with the Commerce ministry and ensure availability of easy finance for the applicant farmers.
Rajasthan is among the early adopters of the KUSUM project and has already selected more than 600 applicants under the scheme.
According to official data, 95 per cent of the applicants are farmers and many of them need finance to meet the initial investment.
Notably, one-megawatt solar power generation capacity needs an investment of nearly Rs 4 crore.