Union Minister Pushes Cooperative Societies to Adopt Solar Power Under PM-KUSUM Scheme

Hyderabad: Union Minister Bandi Sanjay Kumar has made a strong pitch to cooperative societies throughout Telangana to establish solar power plants under the PM-KUSUM initiative, citing substantial income potential and attractive financing options.

During an inspection visit to Choppadandi, the minister examined an ongoing solar power project and evaluated both its financial structure and implementation progress. He highlighted that the Centre is actively promoting renewable energy investments by cooperative societies, with NABARD extending financial support to facilitate these ventures.

The Choppadandi installation marks a significant milestone as the inaugural cooperative-run solar plant within the Karimnagar Parliamentary constituency, according to the minister.

Attractive Financing Framework

The PM-KUSUM scheme offers a structured financial arrangement designed to reduce barriers to entry. A 1-megawatt solar installation requires total capital of ₹3.80 crore. Under the programme's framework, cooperative societies are required to contribute ₹40 lakh, while NABARD extends credit for the remaining ₹3.40 crore.

The loan structure carries a base interest rate of 4 percent, but societies maintaining consistent repayment schedules receive a 3 percent rebate, bringing the effective rate down to just 1 percent. Individual entrepreneurs pursuing similar projects can access financing at 9 percent interest, with the same 3 percent rebate available for timely payments.

Economic and Environmental Benefits

The Choppadandi facility will produce 1 megawatt of electricity, with distribution companies committing to purchase the generated power at ₹3 per unit. Currently, Telangana operates only five cooperative solar installations—one in Choppadandi and four additional facilities in Peddapalli district.

A 1-megawatt plant requires just 3 acres of land, making the scheme accessible to cooperative societies and landowners with modest acreage. The minister emphasized that such renewable energy ventures deliver reliable income streams while advancing the nation's clean energy objectives in rural communities.

During the same visit, Bandi Sanjay Kumar also toured a Jan Aushadhi Kendra facility in Choppadandi, where he promoted the use of affordable medicines available through the government's healthcare programme. He characterized both the renewable energy and healthcare initiatives as complementary efforts to enhance living standards and foster sustainable economic development.