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PM KUSUM

Posted 12 Sep 2024

Updated 14 Sep 2024

3 min read

Why in the News?

As per Ministry, total numbers of farmers benefited in the country through the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme as on 30.06.2024 is around 4.1 Lakhs.

Objectives

Salient features

  • Incorporating renewable energy in farmers’ irrigation practices.
  • Replacing high cost diesel with less expensive solar energy.
  • Reducing the agriculture electricity subsidy burden on States and improving the financial health of DISCOMS 
  • Helping farmers gain access to solar water-pumps at subsidized rates.
  • Giving farmers an avenue to utilize their barren land through setting up of solar power plants for energy generation.
  • Ministry: Ministry of New and Renewable Energy
  • Launch year: 2019
  • Target: Add Solar capacity of about 34,800 MW by March 2026
  • Type: central sector scheme
  • Eligibility:
    • An individual farmer.
    • A group of farmers.
    • Farmer producer organization.
    • Panchayat.
    • Co-operatives.
    • Water User Associations.

Three Components

  • Component A: Setting up of 10,000 MW of Decentralized Ground/ Stilt Mounted Grid Connected Solar or other Renewable Energy based Power Plants by the farmers on their land.
    • Farmers can install Renewable Energy Power Plants (500 kW to 2 MW) on their own land, either individually or with groups/cooperatives.
      • Solar panels can be installed on cultivable land with crops grown below.
    • DISCOMs will purchase solar power at a feed-in-tariff (FiT) set by the State Electricity Regulatory Commission (SERC).
    • Procurement Based Incentive (PBI) @ 40 paise/kWh or Rs. 6.60 lakhs/MW/year, whichever is less, will be provided for the first five years by MNRE to DISCOMs, for buying the power from farmers/developers
    • The project site should be within 5 km of the nearest sub-station.
  • Component B: Installation of 14 Lakh Stand-alone Solar Agriculture Pumps.
    • Individual farmers will be supported to install standalone solar Agriculture pumps of capacity up to 15 HP in off-grid areas, where grid supply is not available.
    • Centre and state to share 30% of pump cost each; farmer to provide the remaining 40% (can access bank loan for up to 30% of the cost).
      • In NER/Hilly Region and Islands, CFA of 50%, State Government subsidy 30%, Remaining 20% by the farmer
      • In case the State Government is not in a position to give its share of subsidy of 30%, farmers can still set up solar pumps with only Central Financial Assistance.
  • Component C: Solarisation of 35 Lakh Grid Connected Agriculture Pumps including Feeder Level Solarization.
    • Individual Pump Solarisation (IPS) 
      • Individual farmers having grid connected agriculture pump will be supported to solarise pumps. Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme
      • The farmer will be able to use the generated solar power to meet the irrigation needs and the excess solar power will be sold to DISCOMs.
      • Centre and state to share 30% of pump cost each; farmer to provide the remaining 40% (can access bank loan for up to 30% of the cost).
    • Feeder Level Solarisation (FLS)
      • Instead of the individual solar pumps the states can solarize the agriculture feeders. 
      • Where agriculture feeders are not separated, loan for feeder separation may be taken from NABARD or PFC/REC. 
        • Further, assistance for feeder separation may be availed from the Revamped Distribution Sector Scheme (RDSS) of the Ministry of Power. However, mixed can also be solarised.
      • CFA of 30% on the cost of installation of solar power plant (up to Rs 1.05 Cr/MW for General States and Rs 1.75 Cr/MW for NER/Hilly Region and Islands) will be provided.
      • However, in the NER/Hilly Region and Islands 50% subsidy is available.
  • Tags :
  • PM KUSUM
  • Solar Capacity Addition
  • Feeder Level Solarisation
  • Individual Pump Solarisation
  • Solar Agri Pumps
  • Discoms
  • Kisan Urja Suraksha
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