The government is implementing a scheme to install one lakh solar pumps for irrigation and drinking water, Parliament was informed on Thursday.

"The Ministry of New and Renewable Energy is implementing programme for installation of 1,00,000 solar pumps for irrigation and drinking water through State Nodal Agencies and NABARD," Power, Coal and New & Renewable Energy Minister Piyush Goyal said in a written reply in the Lok Sabha.

He further said that the ministry provides 30% capital subsidy to farmers for installation of solar pumps for irrigation purpose through state nodal agencies.

The state governments may also provide additional subsidy through own funds.

The ministry also provides 40% subsidy with mandatory loan to farmers for irrigation purpose through NABARD, Goyal added.

He further said: "The ministry has issued supplementary guidelines for 1,00,000 solar pumps during 2014-15 and Rs 353.50 crore was released to various agencies. Till now 63,436 pumps were sanctioned to various state government agencies and 30,000 solar pumps were sanctioned to NABARD." The state governments are subsidising solar pumps so that farmers take this up in a big way. MNRE has also made provision in guidelines for injection of surplus power in the grid so that farmers can get some returns on the investment.

The ministry has empanelled 53 solar pumps system integrators to operate through NABARD and are providing training, the Minister added.