Maharashtra Government Greenlights ₹1,105.58 Crore Subsidy for Solar Agricultural Pumps
In a significant move to boost renewable energy adoption in agriculture, the Maharashtra government has approved a substantial subsidy of ₹1,105.58 crore for the installation of feeder-separated solar agricultural pumps. This financial allocation is designated for the Magel Tyala Saur Krushi Pump Yojana and will be disbursed to the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the financial year 2025–26.
Official Government Resolution and Implementation Details
A government resolution formalizing this decision was issued by the industries, energy, labour, and mining department on January 30. The primary objective of this ambitious scheme is to ensure a reliable and uninterrupted daytime electricity supply to farmers by transitioning agricultural pump operations to solar energy. Under this initiative, MSEDCL is tasked with implementing the installation of 5 lakh solar agricultural pumps over a five-year period.
As of October 2025, significant progress has been made, with 1.52 lakh solar pumps already installed across the state. This demonstrates the scheme's momentum and its positive impact on the agricultural sector.
Financing Structure and International Collaboration
The project is being financed through a strategic mix of state budgetary support and international funding. Approximately 60% of the total project cost is being raised as market loans by the state government from the Asian Infrastructure Investment Bank (AIIB), a key international financial institution. The remaining portion is provided as a government subsidy, ensuring comprehensive financial backing.
Overall, the state government has approved a total subsidy of ₹4,817.97 crore for the scheme during the period from 2024 to 2028, highlighting its long-term commitment to sustainable agriculture.
Loan Repayment and Green Energy Initiatives
The government resolution specifies that the repayment of the AIIB loan, along with interest, will be managed between 2029 and 2043. This repayment will be facilitated through additional electricity duty collections and contributions from the Green Energy Fund, ensuring a sustainable financial model without burdening the state's immediate resources.
Record-Breaking Achievements and Future Prospects
In a remarkable achievement, Maharashtra set a new world record in December by installing 45,911 off-grid solar agricultural pumps within just 30 days. This feat has been officially recognized by the Guinness World Records, underscoring the state's leadership in renewable energy adoption and its dedication to enhancing farmer welfare.
The released subsidy amount will be routed through the director (finance) of MSEDCL, ensuring efficient and transparent fund management. This initiative not only promotes environmental sustainability but also aims to reduce farmers' dependence on conventional electricity, leading to cost savings and improved agricultural productivity.
