Loss default guarantee fund to aid solar powered pump buyers

Kolkata: SwitchON Foundation along with Punjab National Bank (PNB) has set up the first ‘loss default guarantee fund’ to offer finance to the marginal farmers for buying solar pumps.
“This partnership creates an ecosystem to encourage a large-scale deployment of solar pumps. This is a unique agreement between a private not-for-profit organisation and a leading public sector bank to set up a guarantee fund, which is otherwise, usually set up by government bodies,” said Vinay Jaju of SwitchON Foundation.
The basic aim of the fund is to help unbanked small marginal farmers without any collateral. A senior PNB Official of the Kolkata Zone said: “This novel joint initiative will provide finance for purchasing solar pumps for farming that will promote clean energy under different subsidy schemes of the government.”