Mumbai, Aug 25 (IANS): Maharashtra Cabinet chaired by Chief Minister Eknath Shinde on Sunday approved the expansion of Chief Minister Solar Krishi Vahini Yojana 2.0 to provide uninterrupted and reliable electricity supply to farmers' agricultural pumps in the state during the day.

Chief Minister's Solar Krishi Vahini Yojana 2.0 is being implemented in the state to supply electricity to farmers' agricultural pumps during the day.

The scheme on this mission mode has approved a target of 16,000 MW of decentralised solar power generation capacity comprising 9,000 MW plus the remaining 7,000 MW by 2025.

This will achieve the objective of supplying electricity to 100 per cent agricultural pump consumers in the state during the day.

The cabinet has approved continuing the incentive financial assistance provided under Chief Minister Solar Krishi Vahini Yojana 2.0. Accordingly, an additional fund of Rs 2,891 crore has been approved for the period 2024-25 to 2028-29 for the maintenance and improvement of power substations, financial assistance, and incentives to the Gram Panchayats and Revolving Fund. Out of which the provision of additional funds of Rs 702 crore for the year 2024-25 was approved.

Further, the state cabinet also approved to provision of a 30 per cent Financial Assistance Fund by the state government for solar power generation of the remaining capacity of 7,000 MW on the lines of the Central Financial Assistance Fund of the Central Government.

For this purpose, the government will provide Rs 10,041 crore for the period of 2024-25 to 2026-27.

According to the Chief Minister’s Office, the government has launched the Chief Minister Baliraja Free Power Scheme 2024 to provide power up to 7.5 HP for agricultural pumps free of cost. This will cover 44.6 lakh farmers. The government will provide an annual subsidy of Rs 14,761 crore annually to the state power distribution company (MahaVitaran).

After the implementation of the project under the Chief Minister Solar Krishi Vahini Yojana 2.0, the average power purchase rate of MahaVitaran will decrease.

This will reduce the financial burden on the government on the subsidy given to the agricultural sector and the industrial sector in the coming period.

Meanwhile, the state cabinet also approved providing the government guarantee to MahaVitaran to raise loans for the repayment of the overdue debt of Rs 29,000 crore

This loan will be raised by REC and PFC.