PM Kusum Yojana (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan)

PM Kusum Yojana (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan Yojna) was set up in March 2019 by the Central Government under the Ministry of New and Renewable Energy (MNRE) to finance farmers to induct solar irrigation pumps for agricultural activity and cultivation. This scheme began with the aim of boosting solar power generation across India and offering solar power assistance to farmers. The KUSUM Yojana will remain functional and continue till December 31, 2026.

Key Purpose of the PM KUSUM Scheme

The principal goal of the PM KUSUM Scheme is to make advanced technology accessible to farmers and deliver the mechanisms for de-dieselized irrigation for the growth of the agricultural segment. The primary intent of this project is:

1.   Assisting our farmers with solar pumps for more eco-compatible and productive irrigation as they have the potential to produce greener, renewable, and safer energy.
2.     Additionally, the pump sets involve an energy power network that produces more energy compared to the pumps powered by diesel. Farmer will be able to sell the additional power directly to the Government to augment their revenue.
3.     Secures the energy security for Indian farmers, alongside recognizing the obligation to raise the stake of installed electric power potential from non-fossil fuel energy resources to 40% by the year-end of 2023 as a participant of Intended Nationally Determined Contributions (INDCs), which lays out a nation’s policies for lowering greenhouse gas emissions.
4.     The scheme intends to incorporate solar and other renewable potential of 25,750 MW until 2022 with complete government financial support of Rs. 34,422 Crore.

Features of the KUSUM Scheme

• At the outset, the government will supply 1.75 million solar pumps for agricultural purposes that are off-grid.
• Installation of solar plants having a capacity of 10,000 Mega Watt on uncultivable or arid lands.
• Farmers will receive a 60% subsidy on solar pumps as a direct deposit in their bank account. This subsidy will be shared by both the state and central authorities. Thirty per cent of the expense will be financed as a bank loan. This means that the farmers individually will invest only 10% of the remaining amount.
• The electricity distribution utilities within the State known as DISCOMS will purchase the extra solar power that is generated by the farmers on arid lands. DISCOMS will receive incentives to buy this electricity.
• The government’s operational tube wells and pumps are to be modified to be powered by solar power.

Kusum Yojana Components

This scheme incorporates three components that contain separate features:

• Component A: Install together a 10 GV grid-integrated, decentralized solar plant constructed on stilts and various power plants that operate on renewable energy. Every power plant is sized to cover the range of 500 KW to 2MV. Farmers, panchayats, cooperatives, solar project developers and farmers’ producer companies can set up these solar power plants.
• Component B: Install an off-grid stand-alone solar pump with an individual capacity of 7.5HP and an estimated cost of 17.50 lakh.
• Component C: Financial assistance for the solarisation of 10 lakh grid-tied agriculture pumps with a horsepower capacity of 7.5 HP by 2022. The farmer will get the facility to utilize the solar power produced to cater to the irrigation demands. DISCOM will buy the surplus solar power at a pre-determined tariff.

Component-A’s ambit extends to include pasturelands and farmers possessing marshy or wetlands. A decrease in the solar plant size has also been granted for better farmer participation, and a rise in the completion period from nine to twelve months was provided. Moreover, no penalty is imposed for insufficient solar power generation to make the deployment process quick for farmers.

Further, under Component A, to assist the small and marginal farmers, States can permit solar power projects of less than 500 kW depending on their techno-commercial viability.

In addition, the designated Renewal Power Generator (RPG) shall authorize the solar power plant within twelve months of receiving the Letter of Award (LoA).

The purpose under Component B is to install 17.50 Lakh Stand-alone off-grid Solar pumps, which will be enacted proficiently and time-served with complete assistance from the Central Government, assessed at Rs. 19,036.50 crores.

Component-C supports individual farmers with grid-tied agriculture pumps to solarise their pumps and sell the additional solar power. Buying extra power by DISCOMs from these farmers at the pre-determined price will be considered by the concerned State or its peak capacity, which will double the pump capacity in KW. This component serves the solarisation of grid-tied 10 Lakh agriculture pumps, and one lakh agriculture pumps that are grid-connected will be kept in pilot mode and upscaled with requisite changes depending on the knowledge gained from the pilot phase.

Both Components B and C can benefit separate farmers, associations that use water resources, cooperative societies or communities that offer credit to farmers or irrigation systems that group farmers within a particular area for better efficiency and market outreach.

Key Benefits of the Kusum Scheme

The Kusum Scheme can result in maximizing benefits in the following ways:

•  Can facilitate the decentralization of solar power production
•  Transmission or technical losses of DISCOMS will be under check.
• Subsidy support given by DISCOMS in the agriculture segment will be significantly reduced
• Offers the farmers the scope to sell surplus power produced by the solar plants positioned on their barren lands to the grid
• Gives an impetus to the rising green economy and sustainable development in India
• Provides employment creation potential from the installation of small-capacity solar plants every MW. There is a possibility of employment generation scope for both skilled and unskilled farm employees
• Assist in the de-dieseling of the agricultural sphere within India with the replacement of the current diesel pumps
• Help in the water preservation and security efforts along with energy efficiency

Conclusion

PM Kusum is a commendable initiative taken up by the Government to offer the benefits of solar farming to farmers and promote the application of renewable and sustainable energy in the agricultural sphere. Farmers who make significant contributions to the economy will improve their living conditions and reap the rewards for their toil from the installation of solar pumps. This scheme will provide clean and greener energy with minimum carbon footprints to more than 35 lakh farmers by solarisation of their agricultural pumps.