Punjab to have 12 renewable energy shops

The ministry of non-conventional energy (MNES) has given its nod for setting up 12 Akshay Urja Shops (Renewable Energy Shop, which will showcase solar energy and energy conservation products and would also provide after-sales repair and maintenance services) by private entrepreneurs in Punjab.

These shops will be opened in 12 districts of Punjab including Jalandhar, Ludhiana and Mohali. Also, it is expected that these shops are likely to be operational by March of next year.

Moreover, the state nodal agency, Punjab Energy Development Agency (PEDA), will send the list of eligible parties or person after scrutinising the documents for setting up such kind of shop in remaining 7 districts of Punjab, within 2-3 months.

With a view to increase the outreach of renewable systems and devices, a scheme of Akshay Urja Shops was launched by MNES to cover every district of the country to ensure easy availability of such systems and devices, apart from catering to repair and maintenance needs.

With the setting-up of these shops and other related initiatives, it is expected that the common man will embrace renewable energy technologies in a big way for augmenting energy needs of cooking, lighting and motive power.

Experts believe that this will definitely help people residing in rural areas, where there are frequent power cuts. At present, in Punjab against the total demand of power of 1,650 units per day, the Punjab State Electricity Board has been able to supply only 1,200 units. Moreover, the state is buying 25 lakh units at Rs 6 per unit and supplies free to farmers, paying a subsidy of Rs 1,600 crore to the Punjab State Electricity Board in lieu of free power.

Speaking to Business Standard, PEDA Director S S Sekhon said, "This scheme will definitely help the people residing in rural areas where there are frequent power cuts. We are hopeful that these shops would be operational by March of next year."

"Moreover for remaining 7 districts, we are scrutinising the cases and will submit the eligible candidates list within 2-3 months to MNES for the approval," he added.

These shops will be set up in Jalandhar, Ludhiana, Amritsar, Ferozpur, Bathinda, Mohali, Hoshiarpur etc. Also, as per the scheme, for the eligible candidates, soft loan at an interest rate of 7 per cent to a maximum of 85 per cent, of the cost of establishment of the shop, is available.

Apart from that, the shop owners would be entitled to a monthly recurring grant of Rs 5,000 per month towards manpower, electricity, telephone bills and other miscellaneous expenses.

Moreover, an incentive of Rs 5,000 per month, based on a minimum turnover of Rs 50,000 per month, during the first year and Rs 100,000 per month during the second year of operation would be granted.

The shops will not be eligible for any incentive for a particular month if the turnover is below the minimum amount.