Energy ffficient pumps to reduce Govt’s subsidy bill | business | Hindustan Times
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Energy ffficient pumps to reduce Govt’s subsidy bill

Saving energy is the buzzword these days among consumers and policy makers, keeping that in mind power minister Piyush Goyal is all set to launch a programme to provide farmers with energy efficient pumps. These pumps will lead to national savings of Rs 20000 crore from by 2019.

business Updated: Apr 07, 2016 14:52 IST
Suchetana Ray

Saving energy is the buzzword these days among consumers and policy makers, keeping that in mind power minister Piyush Goyal is launching a programme to provide farmers with energy efficient pumps. These pumps will lead to national savings of Rs 20000 crore from by 2019. The state government provides subsidized electricity to farmers for which the subsidy bill of all Indian states add up to Rs 65000 crore.

This programme will help farmers in replacing electricity guzzling age-old agricultural pumps across the country with the new-age energy efficient agricultural pumps. These pumps will come enabled with smart control panel and a SIM card, giving farmers the flexibility to switch-on and switch-off these pumps from their mobile phones and from the comfort of their homes.

“I believe in setting aggressive targets. While we are saying that we will save Rs 20000 crore of our subsidy bill, my target is to save Rs 30000 crore by 2019” Piyush Goyal, the minister for power, renewable energy and coal told HT.

Andhra Pradesh has already placed an order of one lakh energy efficient pumps with the central government and Maharashtra’s order for 5 lakh pumps.

The savings, on which the power ministry is basing success of this scheme, will depend on the keenness of farmers to change their pumpsets. “The challenge will be to change the farmers’ mindset and persuade them to move from tried and tested pump sets to the new ones” says Dr. Ashok Gulati, noted economist.

These pumps will be free for the farmers and the cost will be recovered through savings of states on account lower electricity consumption of farmers.

Called the National Energy Efficient Agriculture Pumps Programme, it will be launched today in Andhra Pradesh.