The Government of India is formulating a solar energy programme for decentralised power loom units, which will be effective from April 1, 2017. The programme will provide financial assistance and capital subsidies for the installation of solar capacity. This is to address power shortage issues faced by decentralised power loom units.
Under the programme, solar can be implemented as either an off-grid or on-grid project. Financial assistance will be provided at 50 per cent, 75 per cent and 90 per cent of the basic cost of the project for general caste, scheduled caste and scheduled tribe applicants respectively, subject to a maximum ceiling of the subsidy. The subsidy will be extended to both credit-linked and non-credit-linked solar projects, and will be applicable only for the installation of a solar project for running power loom units.