(GIST OF KURUKSHETRA) PM KUSUM — Growing Power m Farmers Fields

[January-2022]

PM KUSUM — Growing Power m Farmers Fields

Introduction:

Ministry of New and Renewable Energy (MNRE) has launched the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) Scheme for farmers for installation of solar pumps and grid connected solar and other renewable power plants in the country.
The scheme aims to add solar and other renewable capacity of 25,750 MW by 2022 with total central financial support of Rs. 34,422 Crore including service charges to the implementing agencies.

Highlighting the components:

Component A aims in addition of 10’000 MW of Solar capacity through installation of small solar power plants of capacity up to two MW. Individual farmers, co-operatives, panchayats and FPOs are being supported for setting up solar power plants on barren, fallow, marshy, pasture or cultivable lands.
A farmer can a so provide his land on lease to a developer for installing the plant. Power generated from plant may be used by farmer for his own requirement, and surplus power will be purchased by DISCOMs at tariffs determined by the respective State Electricity Regulatory Commissions. According to estimates, farmers will be able to earn up to Rs. 25,000 per acre per year if the plant is installed by developer, and up to Rs. 65,000 per acre per year if the plant is set up by farmers themselves. Being a priority sector lending, banks provide loan at competitive rates and on soft terms.
Under component-B, individual farmers and groups of farmers are being supported to replace their existing diesel pumps with solar pumps. Farmers are provided with Central Financial Assistance (30 percent of cost) and subsidy by State Government (30 percent of cost) to ease the financial burden. This component is likely to benefit 20 lakh farmers in off-grid areas, where there is no source of electric power for irrigation.
In component-C, Government of India is providing 30 percent subsidy for solarisation of agricultural feeders. It lowers the cost of capital and cost of power. Farmers are getting day-time reliable power for irrigation free of cost or at tariff fixed by their respective States.
Initially, the scheme aimed at adding solar capacity of 25.75 GW by 2022. The total central financial support provided under the scheme was over Rs. 34,000 crore. But, in the budget for 2020-21, an expansion was approved raising the target to 30.8 GW. On the basis of demand received from the states, sanction has been issued during 2019-20 and 2020-21 for installation of 4909 MW capacity of small solar power plants; installation of 3.59 lakh standalone solar pumps, and solarisation of over 10 lakh existing grid connected pumps.