Government Expands Vendor Base for PM Surya Ghar Scheme

The Ministry of New and Renewable Energy (MNRE) has relaxed vendor eligibility criteria for Union Territories (UTs) to participate in the PM Surya Ghar: Muft Bijli Yojana. This aims to accelerate the implementation of scheme in the country. This Office Memorandum (OM) was issued on August 13, 2024.

Previously, only vendors registered within UTs were eligible for rooftop solar installations under the scheme. Recognizing the limited availability of vendors in these regions, the MNRE has now allowed vendors from adjacent states to operate in UTs without the need for additional bank guarantees.

This allocation of vendors will be as follows:

Name of Union Territory (UT)Vendors of Adjacent States Allowed to Work in UT
PuducherryTamil Nadu
ChandigarhPunjab, Haryana
Jammu & KashmirPunjab, Himachal Pradesh
LadakhHimachal Pradesh
Daman & Diu and Dadra & Nager HaveliGujarat, Maharashtra
Andaman & Nicobar IslandsTamil Nadu, West Bengal
LakshadweepKerala
List of Permitted Adjacent States

The OM also states that the vendors registered with one DISCOM in a state are also be allowed to work in other DISCOMs of the same state without any requirement of additional bank guarantee.

These decisions aim to expedite the installation of rooftop solar systems in UTs, thereby promoting clean energy adoption and achieving the scheme’s objectives more efficiently. It is also expected to boost competition among vendors, leading to potentially lower costs and better services for consumers in UTs.

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