Mukhyamantri Saur Swarojgar Yojana (MSSY)
Mukhyamantri Saur Swarojgar Yojana (MSSY)
The Government of Uttarakhand launched the Mukhyamantri Saur Swarojgar Yojana (MSSY) to support small and marginal farmers, as well as young entrepreneurs impacted by the COVID-19 pandemic, by creating sustainable income opportunities. This initiative encourages individuals to generate reliable monthly earnings through solar energy.
Under the scheme, beneficiaries can install solar power plants ranging from 20 kW to 200 kW on their own or leased land. The electricity generated is sold directly to the state power utility, UPCL, ensuring a steady revenue stream. The government facilitates a 25-year power purchase agreement (PPA), with a fixed tariff of ₹4.64 per unit, providing long-term financial security.
One of the key advantages of MSSY is the productive use of barren, unused, or hilly land, where traditional farming is difficult. By utilizing such land for solar installations, individuals can earn a stable passive income of up to ₹1.5 lakh per month*.
Additionally, the Uttarakhand government supports participants by offering financial assistance, including loans and subsidies, to reduce the initial investment burden. Overall, MSSY is a forward-thinking initiative that promotes renewable energy adoption while boosting rural employment and economic stability.
Financing the Solar Plant
The cost of setting up a solar power plant under this initiative is estimated at ₹50,000 per kilowatt, which means a plant with a capacity of 20 kW to 200 kW may require an investment ranging from ₹10 lakh to ₹1 crore. To make this investment more accessible, the government facilitates financial support through public sector banks. Beneficiaries can avail loans of up to 75% of the total project cost, with an interest rate of up to 9% per annum and a flexible repayment period of up to 15 years, making it easier to manage repayments over time.
In addition to loan support, the Uttarakhand government provides a capital subsidy of up to 50% on the total plant cost under the Chief Minister Self-Employment Scheme, which is managed by the MSME Department. This significantly reduces the upfront financial burden for applicants. Furthermore, the state government also offers an interest subsidy, covering a portion of the loan interest to further ease financial pressure.