EFFECTIVE  SOLAR SUBSIDY

Govt to encourage alternative energy offers subsidy for solar power .If
loan is taken it will be Rs6600= and without loan it is Rs 2000= The loan
has to be taken compulsorily from Nationalised  Banks and other designated
banks only and cannot be closed before two years The agents make it
attractive to avail of the loans to claim more subsidy. The subsidy in
spite of submitting reports and documentation does not come easily without
constant pursuing the matter

The cost is Rs 30,000= and down payment is Rs7500=and loan amount is
Rs22500= At the end of 2 years period amount paid to the bank by
installments, processing fee and interest works out to be Rs 26,010= .Total
interest works out as Rs 26010-Rs22500=Rs3510. Effective subsidy
Rs6600-Rs3510= Rs 3090 Hence the   almost half the subsidy benefits the
bank by way of interest. It is advisable to take direct subsidy without
loan,  if not enticed to take loan.

Nelson Lopes Chinchinim

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