Feb 13, 2025, marks the one-year anniversary of PM Surya Ghar: Muft Bijli Yojana (PMSGMBY). A year back, Prime Minister Narendra Modi launched this yojana to provide free electricity by facilitating the installation of rooftop solar panels. The scheme makes renewable energy more accessible and affordable by offering subsidies of up to 40% on rooftop solar installations.

As the world’s largest domestic rooftop solar program, PMSGMBY is transforming India’s energy landscape, with an ambitious plan to provide solar power to 10 million households by March 2027. Let’s look at how you can get free electricity by installing solar panels through this Yojana.

How to Apply for Subsidy under PM Surya Ghar Muft Bijli Yojana?

You can follow the below steps to apply for PM Surya Ghar Muft Bijli Yojana:

Step 1: Visit the official website

Step 2: Provide personal details for registration

Step 3: Now, login with consumer number and mobile number

Step 4: Apply for the rooftop solar as per form

Step 5:  Fill the online application form

Step 6: Now, you need to wait for DISCOM approval and install plant with a registered vendor

Step 7: After installation is finished, you need to submit plant details and apply for net meter

Step 8: Post net meter installation and DISCOM inspection, obtain the commissioning certificate from the portal

Step 9: Submit bank details and a cancelled cheque, receive subsidy within 30 days

Achievement of PM Surya Ghar Muft Bijli Yojana

As per the government data, the scheme has already benefited 8,46,000 households through rooftop solar installations as of January 27, 2025. This rapid adoption is reflected in the tenfold increase in monthly installations, now averaging around 70,000 per month, far exceeding pre-scheme figures.

To date, ₹4,308.66 crore has been allocated as Central Financial Assistance (CFA) to 5,54,000 residential consumers, with an average subsidy of ₹77,800 per household. Additionally, approximately 45% of beneficiaries are now receiving zero electricity bills, depending on their solar power generation and consumption patterns.

Key Benefits of PM Surya Ghar Muft Bijli Yojana

• Free Electricity for Households: The scheme provides households with free electricity by subsidising rooftop solar panel installations, significantly lowering their energy bills.
• Reduced Government Electricity Costs: By encouraging widespread use of solar power, the scheme is expected to save the government an estimated ₹75,000 crore annually in electricity expenses.
• Increased Renewable Energy Use: The initiative promotes the adoption of renewable energy sources, contributing to a greener and more sustainable energy mix in India.
• Lower Carbon Emissions: The transition to solar energy through this scheme will help reduce carbon emissions, supporting India’s goals for a lower carbon footprint.
• Collateral-Free Loans: Households can also access collateral-free, low-interest loans with an interest rate of around 7% for the installation of rooftop solar systems up to 3 kW.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

The Reserve Bank of India (RBI) was prepared to inject ₹2,50,000 crore into the banking system through its Variable Rate Repo (VRR) auction on Wednesday to improve liquidity.

The central bank explained that the amount was determined after assessing current liquidity conditions. Additionally, the RBI announced that it would hold daily VRR auctions on all working days in Mumbai, with reversals occurring the next working day, until further notice.

RBI Governor Sanjay Malhotra had stated last Friday, following the monetary policy meeting, that the central bank was committed to ensuring adequate liquidity in the economy and would take necessary steps to maintain stable liquidity to meet system requirements.

Governor Malhotra also emphasized that the RBI is closely monitoring the rupee and taking measures to stabilize the Indian currency.

As per new reports, RBI will actively manage liquidity and possibly implement additional measures (such as OMO purchases or FX swaps) as liquidity shortages increase towards the end of March. The report suggests the possibility of a prolonged rate-cut cycle if the growth recovery is slow, influenced by weak domestic demand and global uncertainties.

To support its view, the report referenced the RBI governor’s statement, highlighting the trade-off between stability and efficiency on the regulatory front. The governor noted that this balance would be considered when formulating regulations.

In a major relief for banks, RBI Governor Malhotra announced the deferral of the proposed Liquidity Coverage Ratio (LCR) and project financing norms for one year, meaning they will not be implemented before March 31, 2026.

The decision was made because the original deadline of March 2025 did not allow enough time for proper implementation. The RBI aims to prevent disruptions in the financial system and ensure a smooth transition.

Both public and private sector banks had opposed the implementation of these norms, which were announced by former RBI Governor Shaktikanta Das, expressing concerns over a potential liquidity crisis. Bank leaders raised this issue with Malhotra after he assumed office, following the end of Das’s tenure.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

India’s inflation trends for January 2025 reveal a mixed picture, with headline inflation showing a notable decrease, especially in food prices, signalling some positive shifts for the economy. Alongside inflation statistics, industrial production data for December 2024 has also been released, offering insights into the performance of key sectors like mining, manufacturing, and electricity. Let’s take a deeper dive into the latest trends.

Declining Inflation: A Positive Shift

The year-on-year inflation rate for January 2025, based on the All India Consumer Price Index (CPI), is reported at 4.31%, a provisional figure that represents a decrease from the previous month’s inflation rate. Notably, this marks the lowest inflation since August 2024. This decline of 91 basis points from December 2024 is a welcome sign that inflationary pressures may be easing. The dip in inflation is largely attributed to declines in the prices of vegetables, eggs, pulses, cereals, clothing, and even health services.

Food Inflation: A Significant Drop

The Consumer Food Price Index (CFPI) for January 2025 shows a food inflation rate of 6.02%, indicating a year-on-year increase in food prices compared to January 2024. However, the good news is that food inflation has dropped sharply by 237 basis points compared to December 2024, making January 2025 the month with the lowest food inflation since August 2024. This drop is seen across both rural and urban sectors, though rural areas still experienced higher food inflation at 6.31% compared to the urban sector at 5.53%.

Rural vs. Urban Inflation

• Rural inflation showed a significant decline in both headline inflation and food inflation. In January 2025, headline inflation in rural areas stood at 4.64%, down from 5.76% in December 2024. The rural food inflation also dropped from 8.65% in December to 6.31% in January, reflecting the easing of pressures on essential goods in these regions.
• Urban inflation, too, experienced a notable decrease, with headline inflation falling from 4.58% in December 2024 to 3.87% in January 2025. Similarly, urban food inflation decreased from 7.9% in December 2024 to 5.53% in January 2025. These trends suggest that urban consumers are also benefiting from lower prices on food and essential items.

Sectoral Inflation Breakdown

• Housing inflation for January 2025 is recorded at 2.76%, slightly higher than the 2.71% of December 2024. This index is applicable to urban areas only, reflecting modest increases in housing-related costs.
• Education inflation showed a slight decrease, from 3.95% in December 2024 to 3.83% in January 2025. This combined figure for rural and urban areas signals that the rising cost of education might be stabilizing.
• Health inflation, which stood at 4.05% in December 2024, dropped to 3.97% in January 2025, offering some relief to consumers in the healthcare sector.
• Transport and communication inflation increased marginally from 2.64% in December 2024 to 2.76% in January 2025, signalling slight upward pressure in transportation and communication services.
• Fuel and light inflation remain negative, at -1.38% in January 2025, a small increase from -1.33% in December 2024, continuing the trend of lower fuel prices.

Index of Industrial Production (IIP Data): Growth Continues

On the industrial front, India’s Index of Industrial Production (IIP) for December 2024 shows a growth rate of 3.2%, slightly lower than the 5.2% recorded in November 2024. Despite this slowdown, the performance of specific sectors is worth noting.

• Mining sector saw a growth of 2.6% in December 2024, reflecting steady demand for mineral extraction.
• Manufacturing grew by 3.0%, with 16 out of 23 industry groups showing positive growth. The manufacturing of basic metals (up 6.7%), electrical equipment (up 40.1%), and coke and refined petroleum products (up 3.9%) were among the key contributors to this growth.
• Electricity production showed the highest growth, at 6.2%, indicating robust demand for energy across the country.

The Quick Estimate of IIP for December 2024 stands at 157.2, up from 152.3 in December 2023, indicating year-on-year growth in industrial production.

Conclusion 

While India’s inflationary pressures appear to be easing, with notable drops in food inflation, the industrial sector remains resilient, showing positive growth. These trends offer a cautiously optimistic outlook for the Indian economy as we head into 2025.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.