A SPV water pumping system consists of PV array, a DC/AC surface mounted / submersible / floating motor pump set, electronics, if any, interconnect cables and an ‘on-off’ switch. PV array is mounted on a suitable structure with provision of tracking. Electronics could include Maximum Power Point Tracker (MPPT), Inverter and Control/Protections.

Solar pumping system upto 10 HP are eligible for subsidy under the scheme.

Only manufacturers/entrepreneurs empanelled by MNRE, GoI (displayed in website of MNRE, GoI at http://www.mnre.gov.in) can participate in the scheme. The empanelled manufacturer/entrepreneur will raise the invoices for the supplied products. The invoices generated by their dealers will not be eligible for subsidy.

Banks have to ensure that beneficiary contributes a minimum margin of 20% of the Total Financial Outlay (TFO). If the margin is less than 20% of the TFO, the project will not be eligible for assistance under the scheme.

The Total Financial Outlay (TFO) is inclusive of installation, commissioning, transportation, insurance, 5 year operation and maintenance charges and taxes wherever applicable.

Banks should ensure that the units are insured. The insurance premium may also be included in the TFO.

Under the scheme, projects financed by all Commercial Banks, RRBs, State and District Central Cooperative Banks, SCARDBs as also NABARD (under direct lending) will be eligible to receive subsidy

Individuals, group of individuals, SHGs, JLGs, NGOs, Farmers’ Clubs and Farmers Producers Organisation will be eligible for subsidy. However, Private / Public Limited Companies / Corporates are not eligible.

The eligible borrowers shall apply to the banks for sanction of loan for the project. The bank shall appraise the project as per the norms and if found eligible, sanction the loan excluding the margin, subject to technical feasibility and financial viability.

Based on the field visit and after satisfactory installation of the unit, the bank shall arrange to make payment directly to the supplier.

There would be a minimum lock in period of 3 years and hence, if the loan is repaid before three years, the borrower will not be eligible for subsidy.

In case the unit is found to be incomplete or the subsidy is misutilized, Bank shall arrange to recall the subsidy and refund the same to NABARD. In the event of loans becoming NPA, beneficiary will not be eligible for subsidy and the same will have to be refunded to NABARD.

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NABARD-operational-Guidelines-of-Solar-Water-Pumping-Programme