Friday, June 06, 2014: Visibly irked with the way the Ministry of New and Renewable Energy (MNRE) has handled the scheme of things, the Solar Thermal Federation of India (STFI) has now asked the ministry to clear Rs 3,750 million subsidy dues that it owes to direct channel partners and manufacturers of solar water heaters. The same has been long pending since 2012, and failure to reimburse the amount within 10 days will entail a protest by the direct channel partners, said STFI.
The MNRE scheme was launched in 2010 under the Jawaharlal Nehru National Solar Mission with an aim to encourage installation of solar water heaters across the country and deploy 20,000 MW of grid connected solar power by 2022 in the process. The government had announced a subsidy of 30 per cent on solar water heaters sold through the direct channel partners (DCPs) across the country. These DCPs were directed to sell their solar panels and other components at subsidised rates and the subsidy amount was to be reimbursed to them later.
However, the government has failed to reimburse the DCPs, hence the discontent. “The long pendency is forcing many direct partners to shut shop. India was the third largest market for solar water heaters after China and Germany, but 2013 saw it slipping to the 5th rank. Seeing the market growth, it is expected that the pendency may exceed Rs 5,00 million in the current financial year, taking the burden to almost Rs 8,700 million.” Jaideep Malaviya, secretary general of STFI was quoted as saying by ToI. The government on its part argues that it has failed to reimburse the DCPs due to unprecedented growth of the programme and a shortage of funds.
