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India: NABARD Scheme Successful with Buyers

Submitted by Baerbel Epp on April 24, 2013

The subsidy scheme of the Indian National Bank for Agriculture and Rural Development (NABARD) has grown into a successful programme since its implementation in August 2011. NABARD has already received 4,364 applications from rural households. Applicants can choose between a subsidy covering 30% of the benchmark costs or a low-interest loan (5 % interest rate) lending them 80% of the benchmark costs. The flat 30% subsidy scheme, however, financed at a commercial lending rate of close to 11%, has found more supporters than the 5% interest loan because of the shorter payback time of the first option. The benchmark cost per unit depends on the technology used. Solar water heaters based on flat plate collectors receive a 30 % subsidy of Indian Rupee (INR) 22,000, which adds up to INR 6,600, and solar water heaters based on vacuum tube collectors are granted a 30 % subsidy on IND 20,000, which makes INR 6,000 (INR 1 = EUR 0.01).

India: NABARD to offer Subsidy for Solar Water Heaters

Submitted by Baerbel Epp on October 4, 2011

 Logo NABARD In its Circular No.147 /ICD- 36 /2011  dated 3 August 2011, the Indian National Bank for Agriculture and Rural Development (NABARD) has included solar water heating systems as an eligible technology for subsidy and low-interest loans if they do not exceed a capacity of 400 litres. The circular is addressed to all commercial banks and regional/rural banks involved. An earlier circular - No.110 dated 27 May 2011 - had already announced the Capital Subsidy-cum-Refinance Scheme for decentralised solar PV installations.

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