The Hindu : Kerala / Kochi News : Good response to solar energy promotion scheme

Online edition of India's National Newspaper
Friday, Dec 30, 2005

Kerala

Kerala - Kochi

Good response to solar energy promotion scheme

R. Ramabhadran Pillai

Low-interest loan for installation of solar energy systems

KOCHI: A bank loan at two per cent interest may be the lowest ever offered by any financial institution in the history of modern banking. The loan, offered under a solar energy promotion scheme, is extended through a consortium of banks.

There are two separate schemes, one supported by the United Nations Environment Programme (UNEP) and the other by the Indian Renewable Energy Development Agency. The loan under the UNEP scheme is extended through Canara Bank and South Malabar Gramin Bank while the loans under the IRERDA scheme are supplied through seven banks.

The soft loan for lighting systems is being extended to individuals, self-help groups and small business establishments. The rate is 2 per cent for individuals, 3 per cent for institutions and 5 per cent for business establishments.

The loan will cover up to 85 per cent of the cost of the project, subject to a maximum of Rs.25,000.

The scheme has elicited good response from customers, according to Canara Bank officials. Introduced a few weeks ago, the marketing efforts are under way. Based on the initial enquiries, the officials are hopeful of a surge in demand for the loan in the months to come.

The IREDA scheme envisages provision of loans under `accelerated development and deployment of solar water heating systems in domestic, industrial and commercial sectors.' The scheme is being implemented on a directive from the Ministry of Non-Conventional Energy Sources.

There have been many enquiries from customers for buying solar lighting and heating systems after the introduction of the scheme recently, says G.Sivaramakrishnan, proprietor of Konark Systems, a solar power systems distributor.

Solar power is the ideal solution to several problems arising out of power shortage, he says. The entrepreneur has already installed a solar power station at Nilackal telephone exchange, which caters to Pampa. The solar `stand alone power pack' provides continuous power and there is no need to depend on the power grid.

The station is designed to take care of the power needs up to a week so that power supply is not disrupted during the monsoon season. The project was executed at a cost of Rs.3.5 lakhs and more such projects are being planned elsewhere.

Mr. Sivaramakrishnan says though solar energy projects are more useful to the masses, they are not receiving enough attention in Kerala. "We always lag behind," he says, pointing out that a Rs.2-crore solar energy project was completed at the Vidhan Soudha annexe in Bangalore.

Georgekutty Kurianapally, Managing Director of Lifeway Solar, a company developing solar energy equipments, is also of the opinion that there is vast scope for tapping solar energy in Kerala.

"Green energy will occupy centrestage in the near future", he says.

The new initiative of the Union Government indicates the trend, according to him.

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