Press Information Bureau

Government of India

Ministry of Finance

05-September-2012 17:06 IST

NABARD Loan to Energy Projects

National Bank for Agriculture and Rural Development (NABARD) is acting as an agency for release of subsidy/refinance for Solar Home Lights and Solar Water Heaters under Jawaharlal Nehru National Solar Mission implemented by Ministry of New and Renewable Energy (MNRE), Government of India.

NABARD has released subsidy of Rs. 35.50 crore and refinance of Rs. 32.18 crore to banks (at concessional interest of 2%) under Jawaharlal Nehru National Solar Mission during 2010-11, 2011-12 and 2012-13 (as on 31st July 2012). NABARD also provides funds under Rural Innovation Fund to solar projects.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

* * *

DSM/RS/bs

Subsidy and refinance under national solar mission continue via a rural development bank, with concessional interest and innovation funding. National rural development bank acts as implementing agency for release of subsidies and concessional refinance for Solar Home Lights and Solar Water Heaters under the National Solar Mission, channels subsidy payments and refinance to banks at a concessional interest rate, and provides funds through a Rural Innovation Fund to support solar projects; these administrative disbursements were reported in response to a parliamentary question.