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 Gov. initiatives – Pm kusum Yojna

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PM-Kusum Yojna

Prime Minister Kisan Energy Security and Upliftment Campaign (PM – Kusum) Solar pump will become a means of additional income
  • Switch your electric irrigation pump to solar power and enjoy daytime irrigation.
  •  Sell your excess power to Electricity Distribution Company (DISCOM) and earn revenue for 25 years 
  • 30% subsidy will be given by the center and 30% by the state government 
  • Up to 30% loan facility can be obtained from banks 
  • The loan will be repaid in 5/6 years from the income generated from surplus power 
  • The solar panel will last for 25 years and is easy to maintain

About Scheme

Objective

  • 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.
  • Component B: Installation of 14 Lakh Stand-alone Solar Agriculture Pumps
  • Component C:  Solarisation of 35 Lakh Grid Connected Agriculture Pumps including Feeder Level Solarization.  
  • Scheme Available Till 31.03.2026
 

Salient Features

  • Component A:
    • Renewable Energy Power Plant (REPP) of capacity 500 kW to 2 MW will be setup by individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA) hereinafter called Solar Power Generator (SPG). In the above specified entities are not able to arrange equity required for setting up the REPP, they can opt for developing the REPP through developer(s) or even through local DISCOM, which will be considered as SPG in this case.
    • DISCOMs will notify sub-station wise surplus capacity which can be fed from such REPP to the Grid and shall invite applications from interested beneficiaries for setting up the solar energy plants.
    • The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC).
    • DISCOM would be eligible to get PBI @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the Commercial Operation Date (COD).
    • Component B:
    • Individual farmers will be supported to install standalone solar Agriculture pumps in off-grid areas, where grid supply is not available
    • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar Agriculture pump will be provided. The State Government will give at-least a subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed by farmer, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
    • In North Eastern States, Ladakh, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and Andaman And Nicobar Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most 20% will be provided by the farmer.

 

  •  Component C: 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.
  • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed by farmer, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
  • In North Eastern States, Ladakh, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and Andaman And Nicobar Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give a subsidy of at-least 30%; and the remaining at-most 20% will be provided by the farme.
  • Component C: 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.
    • Solar plants of capacity that can cater to the requirement of the agriculture load of the selected feeder can be installed through CAPEX/RESCO mode for a project period of 25 years.
    • CFA of 30% on the cost of installation of solar power plant (up to Rs. 1.05 Cr/MW) will be provided. However, in the North Eastern States, Ladakh, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep, and Andaman And Nicobar Islands 50% (up to Rs. 1.75 Cr/MW) subsidy is available.
    • The farmers will get day-time reliable power for irrigation free of cost or at tariff fixed by their respective state.

 

Key highlights

  1. Objective:- De-dieselisations of the agri-irrigation sector.
  2. Target:- Installation of 14 Lakh of Offgrid Stand-alone Solar Agriculture Pumps.
  3. Eligible Beneficiaries:- Individual farmers/ group of farmers/ Water User Associations (WUA)/Farmer Producer Organizations (FPO)/Primary Agriculture Credit Societies (PACS) or for cluster based irrigation system.
  4. CFA- 30% ( 50% for NE & Hilly States/UTs/Islands) of Benchmark cost or tender cost whichever is Lower of a particular category/type of the stand-alone solar Agriculture pump will be provided.
  5. Mode of Implementation:-
    1. The State Implementing Agency (SIA) will invite applications for the off-grid solar pumps.
    2. The SIA or any designated agency will conduct the tender process for vendor empanelment and rate discovery for various types of off-grid solar agricultural pumps, as per MNRE guidelines.
    3. Registered beneficiaries can choose a vendor of their interest for the installation.
    4. A site survey will then be conducted, and based on site feasibility, the pump will be installed and it will be covered under warranty and insurance for a period of five years, in accordance with MNRE guidelines.

About PM-KUSUM

Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) Scheme for de-dieselisation of farm sector and enhancing the income of farmers. Under the Scheme, central government subsidy upto 30% or 50% of the total cost is given for the installation of standalone solar pumps and also for the solarization of existing grid-connected agricultural pumps. Further, farmers can also install grid-connected solar power plants up to 2MW under the Scheme on their barren/fallow land and sell electricity to local DISCOM at a tariff determined by state regulator. This scheme is being implemented by the designated departments of the State Government.

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