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News 18 of 29

Farm Solarisation: Centre Aims to Eliminate ₹2.4 Lakh Crore Annual Electricity Subsidy Bill for States

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
11 Apr 2026
~2 min
Source: The Hindu
Key Data:₹2.4 lakh crore
Bodies:Ministry of New and Renewable Energy (MNRE)
Practice MCQs from today's news ▸
What This Article Covers

1.Indian states collectively spend ₹2.4 lakh crore annually on electricity subsidies for agricultural and domestic consumers.

2.The Centre's solar programmes are now designed to persuade states that this subsidy burden can be eliminated over time through farm and rooftop solarisation.

3.This shift represents a strategic move from merely adding clean energy capacity to addressing a critical fiscal challenge for state governments.

The Big Picture
Prelims · HighMains · Medium

The Ministry of New and Renewable Energy (MNRE) is strategically designing solar programmes to help states eliminate their massive annual electricity subsidy bill of ₹2.4 lakh crore. By promoting farm and rooftop solarisation, the Centre aims to transition from a capacity-addition approach to a subsidy-reduction strategy, directly impacting state finances and clean energy adoption.

Exam Lens

Quick Exam Facts From News

Annual Subsidy Bill₹2.4 lakh crore
Key MinistryMinistry of New and Renewable Energy (MNRE)
Primary ToolApproved List of Models and Manufacturers (ALMM)

1-Minute Revision

  • ›Annual Subsidy Bill: ₹2.4 lakh crore
  • ›Key Ministry: Ministry of New and Renewable Energy (MNRE)
  • ›Target this Data: ₹2.4 lakh crore (Annual electricity subsidy bill for states)
  • ›Target this Nodal Body: Ministry of New and Renewable Energy (MNRE)
  • ›Target this Policy Tool: Approved List of Models and Manufacturers (ALMM)

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry's secretary highlighted the potential of farm solarisation to reduce state electricity subsidies?

Q2Statement-basedHard

Consider the following statements regarding the news:

1. Indian States spend nearly ₹2.4 lakh crore annually on subsidising electricity for agricultural consumers only.

2. The Approved List of Models and Manufacturers (ALMM) is a tool to build India's domestic solar manufacturing base.

3. The Centre's solar programmes are now designed solely to add clean energy capacity to the grid.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What is the approximate annual electricity subsidy bill for Indian states, as mentioned in the news?

Q4Application/ImpactMedium

According to the news, what is a key strategic shift in the Centre's approach to solar programmes?

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