PM KUSUM SCHEME- COMPONENTS & BENEFITS
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme was launched by Ministry of New and Renewable Energy (MNRI), GOI with an objective of increasing farmers’ income, provide reliable source for irrigation and de-dieselize the farm sector. The scheme aims for setting up solar pumps and other renewable power plants across the country.
Administrative approval of the Scheme was issued on 08.03.2019 and Scheme implementation Guidelines were issued on 22.07.2019.
With a total Central financial support of Rs 34,422 crore, the scheme aims to add solar and other renewable capacity of 25,750 MW by 2022.
PM-KUSUM Scheme has three Components:
- Component-A (for Setting up of 10,000 MW of Decentralized Grid Connected Renewable Energy Power Plants on barren land)-
- Under this component, renewable energy based power plants (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) on barren/fallow land.
- The renewable energy power project will be installed within five km radius of the sub-stations in order to avoid high cost of sub-transmission lines and to reduce transmission losses.
- The power generated will be purchased by local DISCOM at pre-fixed tariff.
- 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 or developers.
- Component-B (for Installation of 17.50 Lakh stand-alone solar agriculture pumps)-
- Under this Component, individual farmers will be supported to install standalone solar Agriculture pumps of capacity up to 7.5 HP for replacement of existing diesel Agriculture pumps / irrigation systems in off-grid areas, where grid supply is not available.
- CFA of 30% of the benchmark cost or the tender cost, whichever is lower. State Government subsidy 30%; Remaining 40% by the farmer.
- Component-C (for Solarisation of 10 Lakh Grid Connected Agriculture Pumps)
- Under this Component, individual farmers having grid connected agriculture pump will be supported to solarise pumps.
- 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 at pre-fixed tariff.
- CFA of 30% of the benchmark cost or the tender cost, whichever is lower. State Government subsidy 30%; Remaining 40% by the farmer.
Note: In North Eastern States, Sikkim, J&K, Himachal, Uttarakhand, Lakshadweep and A&N Islands, CFA of 50%, State Government subsidy 30%, Remaining 20% by the farmer. Applicable in both B & C component.
BENEFITS OF SCHEME
- The scheme will provide continuous source of income to farmers. This scheme will enable farmers to set up solar power generation capacity on their barren lands and to sell it to the power grid.
- This will provide reliable source of irrigation to farmers and release them from depending on diesel. They can also sell extra power to DISCOMs at pre-fixed tariff.
- It would ensure availability of sufficient local solar/other renewable energy based power for feeding rural load centres and agriculture pump-set loads, which require power mostly during the day time.
- Since the renewable energy power project will be installed within five km radius of the sub-stations, it will avoid high cost of sub-transmission lines and will reduce transmission losses.
- It would provide solar Agriculture pumps of capacity up to 7.5 HP for replacement of existing diesel Agriculture pumps/irrigation systems in off-grid areas, where grid supply is not available.
Frequently Asked Questions
- What is the full form of PM Kusum Scheme?
Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyaan
- PM Kusum was launched on?
Cabinet Committee on Economic Affairs (CCEA) approved PM KUSUM scheme on February 19, 2019. Administrative approval of the Scheme was issued on 08.03.2019 and Scheme implementation Guidelines were issued on 22.07.2019.
- Is there any subsidy in the PM Kusum scheme?
Central government and state governments provide 30 percent subsidy each while, farmers have to contribute 40 percent of the cost. In North Eastern States, Sikkim, J&K, Himachal, Uttarakhand, Lakshadweep and A&N Islands, CFA of 50%, State Government subsidy 30%, and Remaining 20% by the farmer.
- How can a farmer get benefit?
In order to get benefits, a farmer has to register at https://mnre.gov.in/. A farmer has to provide documents/information such as, Aadhaar card, land documents, declaration form and bank account details. Once the application form and documents are approved, farmers will get registered under PM-Kusum Yojana.
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