MSMEs pitch for subsidy for solar energy installations

The Coimbatore District Small Industries Association (CODISSIA) has mooted a proposal with the Tamil Nadu government to provide capital subsidy to Micro, Small and Medium-scale Enterprises (MSMEs) that want to install rooftop solar panels.

CODISSIA president M. Karthikeyan told The Hindu if the MSMEs got 15% of the investment on rooftop solar panels as subsidy, a large number of units would go in for solar energy and thus, reduce the power costs. A micro unit would have to spend about ₹1.5 lakh irrespective of the capacity of the solar energy panel to be installed. Apart from this, the average cost for one KW was about ₹50,000, though it would vary. With a seven-year repayment period, the units could be permitted to install up to 150 KW, depending on the maximum demand requirement of an unit, the association told the government.

If the MSMEs got capital subsidy for the solar project, the electricity charges would reduce by 30% for the MSMEs. Initially, almost 40% MSMEs would benefit. For those operating out of sheds taken on rent in large buildings, the scheme might not benefit immediately as they had to come out with a system to go for solar energy collectively.

The Central government provided 2% interest subvention for solar energy projects of MSMEs through the SIDBI. This had to be effectively used by the units, he added. Most of the micro units in Coimbatore district would require 10-30 KW.

Mr. Karthikeyan said the State government had taken the details from the association and, “We expect a positive announcement soon.”

P. Kumaraswamy, president of Coimbatore district job working powerloom weavers’ association, said a few units went in for solar energy. If the Central and State governments gave about 25% subsidy, at least 50% powerloom units would go for solar energy. The maximum demand of a powerloom unit was about 10 KW.