Claro Energy, a provider of solar water pumping solution, has received $2 million credit facility from RBL Bank to expand its solar pumping business.
Out of this, around $1 million is a Direct Line of Credit that will take care of capital needs, while another $1 is a commitment from the Bank for meeting direct farmer financing on water pumps.
It is expected that millions of farmers will benefit from solar irrigation as MNRE expands the solar pump program across the country.
This credit facility is announced at a time when the solar pumping industry is going through a remarkable growth.
Besides, the credit facility will be used for meeting the growing working capital needs and towards consumer financing for farmers who wish to buy the solar pumps but can’t afford the upfront Capex (capital expenditure).
Claro Energy currently operates in 10 states across the country and has installed solar pumps from 1HP to 10HP across drinking water, irrigation, purification and aquaculture applications.
RBL bank provides financial services for supporting sustainable energy efficient irrigation systems and renewable energy programs for farmers.
The fund announcement is in addition to the allotment of Rs 1,000 crore for promoting solar energy in the country by the Union Government.
This includes a provision of Rs 400 crore for schemes for solar power driven agricultural pump sets and water pumping stations; and a provision of Rs 100 crore for the development of 1 MW Solar Parks on the banks of canals.
Many states including Andhra Pradesh, Madhya Pradesh and Rajasthan are planning capacity additions.
Meanwhile, the Maharashtra Government has announced plans to launch over half a million solar pumps for farm.