NABARD Subsidy: Solar Power Plants for Agri-Export Infrastructure 2024

With rising energy costs affecting the margins of agri-exporters, NABARD has reinforced its support for sustainable energy through credit-linked subsidies for solar power installations. Under the capital investment subsidy schemes currently administered, agricultural units—including those focused on export—can claim financial assistance for setting up off-grid and grid-connected solar power plants for their captive energy needs. As outlined in the NABARD operational circulars for rural infrastructure, the scheme aims to reduce the carbon footprint of the food processing and export sector. By switching to solar, units can significantly lower their electricity overheads, making Indian agricultural products more price-competitive in the international market. The subsidy is typically linked to the capacity of the plant (measured in kWp) and is disbursed through scheduled commercial banks or regional rural banks. ## Key points for Agri-Exporters - **Energy Savings:** Drastic reduction in long-term operational costs for cold storage and processing units. - **Financial Linkage:** Subsidy is credit-linked, meaning a term loan from a bank is a prerequisite. - **Eligibility:** Includes individuals, groups of farmers, and proprietary/partnership firms involved in agri-business. - **Sustainability Branding:** Utilizing renewable energy helps in obtaining international green certifications, which are increasingly demanded by EU and US buyers. Applicants must submit a detailed project report (DPR) along with their loan application to the bank for technical appraisal before the subsidy claim is forwarded to NABARD.