Cabinet okays ₹75,000 crore free electricity solar scheme

Syllabus: GS-I, Subject: Current Affairs, Topic: Schemes/Policies/Programmes, Issue: PM-Surya Ghar: Muft Bijli Yojana

Context: The Union Cabinet approved a ₹75,021-crore package for the “PM-Surya Ghar: Muft Bijli Yojana” (PM Free Electricity scheme)

PM-Surya Ghar: Muft Bijli Yojana:

  • To promote rooftop solar (RTS) installations in India.
  • To provide 300 units of “free electricity” every month to one crore

Funding Mechanism:

  • The Centre will fund 60% of the cost for installing 2 kW (kilowatt) systems and 40% of the cost for systems from 2-3 kW capacity.
  • For the remaining costs, households will be able to “access collateral-free low-interest loans”.

A “Model Solar Village” will be developed in each district to act as a role model for adoption of RTS in rural areas.

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