FCIK calls for industrial rooftop solar by leveraging central schemes

Srinagar, Feb 22: The Federation of Chambers of Industries Kashmir (FCIK) has urged the Government of Jammu & Kashmir to launch a focused solarisation drive across organised industrial estates by leveraging central MSME schemes. The proposal aims to convert idle rooftops into productive, power-generating assets to enhance sustainability and energy self-reliance in the region.

Describing rooftop solarisation as a transformative infrastructure initiative, FCIK has called for tapping the Integrated Infrastructure Development (IID) component of the Micro & Small Enterprises–Cluster Development Programme (MSE-CDP) under the Union Ministry of Micro, Small & Medium Enterprises. The move, it said, would strengthen industrial clusters while advancing sustainable energy adoption.

“By treating rooftop solar systems as a ‘Common Facility’ for organised industrial estates, up to 60 percent of the project cost can be funded by the Government of India,” FCIK noted. It added that aligning this support with the J&K Industrial Policy 2021–30—which provides 100 percent subsidy for alternative power solutions such as generators—would substantially ease the financial burden on the government exchequer.

FCIK stressed that solarisation of industrial rooftops is not merely an environmental initiative but a strategic fiscal and structural intervention. It would significantly reduce the power subsidy burden on the government, curb Aggregate Technical & Commercial (AT&C) losses by promoting localised generation and consumption within industrial estates, and boost in-house power generation capacity in J&K.

“By producing power at the point of consumption, the initiative would effectively act as import substitution, reducing dependence on power procured from outside and strengthening energy self-reliance,” FCIK stated.

Elaborating on the MSE-CDP, FCIK said the scheme is a flagship Government of India initiative aimed at enhancing the productivity and competitiveness of micro and small enterprises through cluster-based development and shared infrastructure creation. Under its Infrastructure Development component, financial assistance of up to 60 percent is available for establishing or upgrading common facilities that benefit multiple units within an industrial cluster.

According to FCIK, rooftop solar installations in organised industrial estates align fully with this mandate, as they represent shared infrastructure assets serving all cluster units while reinforcing the broader industrial ecosystem.

The Federation lauded the Kashmir Small Scale Industrial Association (KSSIA), Bagh-i-Ali Mardan Khan, Srinagar—a constituent of FCIK—for taking the lead by engaging the National Institute of Technology (NIT), Srinagar, to prepare a detailed project report (DPR) for a rooftop solar power system as a common facility for the industrial estate.

FCIK said the Ministry of MSME has agreed in principle to the proposal and sought confirmation from KPDCL regarding power off-take and the operational framework. With KPDCL conveying its consent, the proposal has now been taken up by the MSME branch of the Industries & Commerce Department, Kashmir, for preparation of the final DPR in accordance with MSE-CDP guidelines. The DPR will be submitted to the State Level Steering Committee under the IID component.

The Federation has recommended adopting the solarisation of the Bagh-i-Ali Mardan Khan Industrial Estate as a “test case” under the IID provision and urged the Deputy Chief Minister to direct the concerned authorities to expedite the process.

“Once successfully implemented, the DPR model and operational framework can be replicated across other organised industrial estates in J&K, unlocking the vast rooftop potential available across hundreds of industrial units,” FCIK observed.

FCIK emphasised that the initiative would promote green and sustainable industrial growth, reduce reliance on diesel generators, and improve the reliability and quality of power supply for MSMEs. It would also ease fiscal pressure on the Union Territory government through convergence of central funding.

At the same time, the Federation said, the move would help rationalise subsidy outgo, reduce AT&C losses, enhance local power generation capacity, and align J&K’s industrial development strategy with national renewable energy goals.