On 10th September Jaipur, The Kusum Component- A project, which is now being implemented in the state, has provided significant financial assistance to chosen farmers and developers for the construction of solar power plants on their barren and useless land.
The deadline for the project established under this scheme has been extended from July 7 2021 to March 31, 2022, according to Dr. Subodh Agrawal, Chairman and Managing Director of Rajasthan Renewable Energy Corporation. Aside from that, farmers and developers who are unable to obtain a bank loan to build solar plants under the initiative would be reimbursed their security deposit of Rs 5 lakh. The choice to return was recently made.
Dr. Aggarwal stated that the Rajasthan Vidyut Vitran Nigams pay farmers and developers for power purchased under the KUSUM Component-A program at the appointed time. In addition, the Electricity Distribution Corporations are issuing Letters of Credit (LC) in favor of solar power providers. Farmers and developers have found it easier to obtain bank financing for project development as a result of this strategy.
According to Dr. Agrawal, the state government is committed to providing additional revenue to farmers by constructing solar power plants on their barren and unusable land. Solar power projects with a capacity of 722 MW have been assigned by 623 farmers and developers throughout the state, with 7 projects now producing 9 MW of power and another 15 projects are in progress. The state administration is working tirelessly to secure bank loans for solar power companies.
Rajasthan Vidyut Vitran Nigam is required to open escrow accounts by entering into third-party agreements. The lender bank, the farmer, and the developer, as well as the Rajasthan Energy Distribution Corporation, agree and the lender bank’s monthly installment is paid first by the distribution corporation out of the amount of electricity bill payment. Electricity Distribution Corporation’s L.C is opening an escrow account dipr
that will protect the banks’ loans, the banks will be able to issue loans to farmers and developers without requiring collateral.
