Kerala and Maharashtra to allot funds to promote renewable energy

In the recent state budget notifications, Kerala and Maharashtra took the lead to assign finances to boost renewable energy and electric vehicle (EV) progress in the state.

While the budget included several state development factors, the renewable energy-related reports have followed the trend the recent union budget has set to encourage the improvement of the non-conventional energy source at state levels.

Kerala Finance Minister KN Balagopal said that as part of eco-friendly transport initiatives, a sum of Rs 500 million would be rendered for the conversion of compressed natural gas (CNG), high speed diesel, and liquefied natural gas (LNG) buses into electric buses.

A viability gap fund (VGF) of Rs 320 million will be rolled out to enhance household non-conventional green energy production, comprising solar power.

A total of Rs 330 million is allocated for the Kerala Institute of Local Administration (KILA) to complete projects comprising survey works related to decentralisation, which began in 2020-21.

A sum of Rs 240 million is set apart for the State Water Transport Department to improve the ferry 82 system and purchase passenger-cum-tourist vessels, solar vessels, and new passenger vessels with adequate safety standards. Additionally, 50% of ferry boats will be transformed to run on solar power in the coming five years. An interest subsidy will be provided to loans availed by consumers for establishing residential rooftop solar in Kerala.

An amount of Rs 150 million is allocated for giving interest subsidy for a total loan amount of Rs 5 billion. The minister declared that a 25 kW capacity hydrokinetic turbine project would be established in Moolathara left bank canal under the Chittoor Irrigation Project. The capacity of this will be improved to 3 MW in the future. For the activities including this, an allocation of Rs 91.4 million is set apart for EMC.

Maharashtra Finance Minister Ajit Pawar announced an outlay proposal of Rs 2.53 billion for program expenditure for the Environment and Climate Change Department. The minister also declared that 577 MW of solar power projects would be set up in Maharashtra.

Apart from this 2.5 GW capacity solar energy park will be established in the state. Solar Energy Fencing Program would be implemented in all sensitive villages to avoid the loss of crops by wild animals, said Pawar.

The Government’s Draft EV Policy, 2021, aims to support sustainable and clean mobility solutions in Maharashtra.

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Also read: India adds record 1.7 GW solar rooftop capacity in 2021