State govt offers guarantee to promote solar energy

Bhopal (Madhya Pradesh): The state cabinet on Tuesday approved a proposal wherein state government will offer guarantee to solar projects set up in the state.An example is minimum tariff received in tender issued for more than 10 times the total capacity of 1500 MW of Agar-Shajapur-Neemuch Solar Park, as per government spokesman.Due to this, the lowest solar tariff has been achieved in the country. The guarantee of the state government has resulted in several benefits. The project got loans at low interest due to payment security.International developers were interested in setting up the project, as they could get loans from foreign institutions at low interest rates. Due to low payment risk, developers are willing to set up the project even at low return, that is, low share capital return. In view of guarantee of state government in multi-layered payment security, less…

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