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Chief Minister announces investment subsidy for solar power plants

                                                                                                       The Hindu, Chennai, 26th April, 2013

In a bid to encourage more households to set up solar power plants, Chief Minister Jayalalithaa on Thursday announced an investment subsidy of Rs. 20,000 per KW. She said it was part of her government’s plan to make solar power generation a mass movement.

She also said 11 lakh new electricity connections covering houses, agriculture, commercial and industries would be given in the current year.

In the first phase, the solar energy investment subsidy scheme would benefit 10,000 consumers, she said in a suo motu statement in the Assembly.

She said more power could be generated through solar energy and the State government had already announced generation-based incentive along with the 30 per cent subsidy given by the Ministry of New and Renewable Energy.

As per the announcement, the government is giving Rs. 2 per unit in the first two years, Re. 1 in the next two years and 50 paise for the two years subsequently. Now, the government has decided to give Rs 20,000 as investment subsidy.

The Chief Minister said in the past the government purchased less than 10,000 transformers every year to ensure uninterrupted power supply to consumers and now it had been decided to by 20,000 transformers at a cost of Rs. 500 crore to overcome the shortage.

Moreover, Rs. 850 crore would be spent on creating 15,000 km of high tension and low tension power lines.

She said a sub-station with a capacity of 400 KW would be set up to transmit the wind power generated in Coimbatore, Udumalpet and Theni. These stations would come up in Thappakundu in Theni district and Anakadavu and Rasipalayam in Coimbatore district.