Cabinet Approves NTPC’s Green Energy Farm Scheme
India’s Cabinet has cleared NTPC Green Energy’s ₹10,000 crore farm scheme to deploy 5 GW of solar capacity across 50,000 hectares in states like Uttar Pradesh, Gujarat, and Rajasthan. Aimed at integrating clean energy with agriculture, the project supports 1 million farmers with solar pumps, reduced irrigation costs, and organic farming incentives. While aligned with India’s 2030 renewable targets and PM PRANAM goals, the scheme faces hurdles in land acquisition, rural grid access, and low smallholder inclusion. Financial gaps and limited awareness challenge adoption, but microgrids, subsidies, and community-led models may offer scalable solutions.
Cabinet has approved NTPC Green Energy’s farm scheme to integrate renewable energy with agriculture, boosting rural incomes and sustainability. While promising, the initiative faces challenges in execution and farmer adoption.
Announced in July 2025, the scheme allocates ₹10,000 crore to develop solar-powered farms across Uttar Pradesh, Rajasthan, and Gujarat. Covering 50,000 hectares, it aims to generate 5 GW of solar energy while supporting crop cultivation, benefiting 1 million farmers. The initiative reduces irrigation costs by 30% through solar pumps and cuts fertiliser use via organic farming incentives. India’s 236 GW renewable capacity, targeting 500 GW by 2030, supports such projects, with NTPC contributing 20 GW. The scheme aligns with the PM PRANAM initiative to promote sustainable agriculture.
Challenges include land acquisition delays, affecting 25% of similar projects, and low farmer awareness, with only 30% of rural farmers using solar tech. Posts on X highlight enthusiasm but note financing gaps, with banks hesitant to fund smallholders. Critics argue that the scheme’s focus on large farms risks excluding 86% of smallholder farmers. Infrastructure gaps, like limited grid connectivity in 40% of rural areas, further complicate scalability.
The government plans to expand microgrids, as seen in Nepal’s 10,000 MW export deal, to support rural energy needs. Training programs and subsidies, like ₹2.5 crore per MW for bioenergy, could drive adoption. Community-led models, like Wular Lake’s revival, offer lessons in inclusive implementation.
NTPC’s farm scheme is a step towards green agriculture. Overcoming land, financing, and awareness barriers is crucial for inclusive, sustainable growth.
Source: Outlook Business
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