PM KUSUM Scheme
PM KUSUM Scheme The Government of India launched the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) Yojana to increase farmer income and provide sources for irrigation and de-dieselization of the agricultural sector. The PM Kusum scheme was approved administratively in March 2019, and guidelines were developed in July 2019. The Ministry of New and Renewable Energy (MNRE) launched the scheme to install solar pumps and other new power plants across the country.
The Government of India’s PM-KUSUM scheme is one of the world’s largest initiatives to provide clean energy to more than 3.5 million farmers by solarizing their agriculture pumps and allowing farmers to build 10 GW distributed solar projects. The scheme intends to build 30.8 GW of solar capacity by December 31, 2023, with a total investment of INR 340.35 billion (US$4.65 billion).
What exactly is the PM-KUSUM Scheme?
The Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan (PM-KUSUM) scheme was launched by the Government of India in 2019 under the auspices of the Ministry of New and Renewable Energy (MNRE). The scheme’s goal is to assist in the installation of off-grid solar pumps on village land (rural areas), reducing their reliance on the grid. It only applies to grid-connected areas.
The idea is to increase farmers’ income by selling excess electricity generated and to reduce farmers’ reliance on diesel. The scheme was launched across the country by the Ministry of New and Renewable Energy.
The Scheme’s Objectives:
- The emphasis will be on decentralised solar power plants for electricity generation.
- To provide farmers with an additional source of income by selling excess electricity generated by solar panels.
- To assist India in meeting its goal of generating 40% of total electricity generation from renewable sources by 2030.
Advantages of the Scheme
The scheme will provide rural landowners with a stable and continuous source of income for the next 25 years by utilising their dry/uncultivable land. Furthermore, if cultivated fields are chosen for solar power project installation, farmers will be able to continue growing crops because the solar panels will be installed above a certain height.
The scheme would ensure that there is enough local solar/other renewable energy-based power available to feed rural load centres and agriculture pump-set loads, which are mostly powered during the day. Because these power plants will be located closer to agricultural loads or electrical substations in a decentralised manner, transmission losses for STUs and Discoms will be reduced. Furthermore, the scheme will assist Discoms in meeting the RPO target.
Apart from preventing harmful pollution from running diesel pumps, solar pumps will save farmers money on diesel for running diesel pumps and provide them with a reliable source of irrigation. Given the long waiting list for electric grid connections, this scheme will benefit 17.5 lakh farmers over a four-year period while not adding to grid load.
Drawbacks of the Kusum Scheme
Water table depletion – Because of power subsidies, the recurring cost of electricity is so low that farmers continue to pump water, causing the water table to deplete. In the event that the water table falls in a solar installation, upgrading to higher capacity pumps is much more difficult because a new solar panel must be added, which is very expensive.
Omission of Small and Marginal Farmers – Because the scheme focuses on pumps with capacities of 3 HP and higher, there has been a relative omission of small and marginal farmers, resulting in solar pumps not reaching the majority of farmers, despite the fact that nearly 85% of them are small and marginal farmers. Furthermore, the reality of low water tables, particularly in North India and parts of South India, makes small-sized pumps impractical for farmers.
There is a logistical issue with the domestic availability of the equipment itself. While domestic suppliers face no difficulty in supplying pumps, the availability of solar pumps remains an issue. Furthermore, due to the strict DCR (Domestic Content Requirements), solar equipment suppliers must increase domestic cell sourcing. However, domestic cell manufacturing capacity is insufficient.
PM KUSUM Yojana components
Component A
- Workers will construct 10,000 MW of grid-connected decentralised renewable energy power plants on barren land under this concept.
- These networks will be built by farmers, cooperatives, farmer organisations, panchayats, Water User Associations (WUA), and Farmer Producer Organizations (FPO).
- Power projects will be built within a 5-kilometer radius of the substation.
Component B
- Under this scheme, farmers would be assisted in installing stand-alone solar agriculture pumps worth Rs. 17.50 lakhs.
- The pumps, with a horsepower rating of up to 7.5, will be used to replace existing diesel farming pumps.
- Although the capacity can exceed 7.5 HP, financial assistance will be limited to that amount.
Component C
- This programme aims to solarize tens of thousands of grid-connected agriculture pumps, with individual farmers receiving assistance to solarize pumps that are already connected to the grid.
- Extrasolar power will be sold at a fixed price to India’s distribution companies (DISCOMs).
- Farmers’ irrigation needs will be met with solar energy.
1)What exactly is the Kusum Yojana scheme?
Scope of the PM KUSUM Scheme (Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan). The scheme will be available throughout India. The Scheme’s Objectives Solar Pump Installation and Grid-Connected Solar and Other Renewable Energy Power Plants
2)Is the Kusum Yojana still in effect?
The scheme aims to add 25,750 MW of solar and other renewable capacity by 2023, with a total central financial support of Rs. 34,422 crore, including service charges to implementing agencies. The scheme has been extended until March 31, 2019.
3)Who qualifies for the PM KUSUM Scheme?
Individual farmers are not eligible for the KUSUM Scheme. A farmer’s cooperative. FPO stands for Farmer Producer Organization.
4)How much is the Kusum Yojana subsidy?
The KUSUM Scheme’s Objectives
Farmers will receive a 60% subsidy directly from the government. Farmers will receive 30% of the funds through soft loans. Farmers will bear 10% of the actual cost.
5)Is the PM Kusum Yojana financially viable?
Profitability of 1 MW solar power generation
A 1MW solar power plant will generate 1584000 units of electricity per year. And, at a rate of Rs. 3.5 per unit, which you will receive from your state government under the Kusum Yojna, the revenue generated by 1MW will be 1584000 units x Rs 3.5 = Rs. 5,544,000.
6)How do I apply for a loan for the Kusum Yojana?
PM Helpline Number for Kusum Yojana
The MNRE website, www.mnre.gov.in, contains information on who is eligible to participate in the Scheme as well as the implementation process. Those with questions can visit the MNRE website or call the toll-free support line at 1800-180-3333.