PM- KUSUM Scheme- Get 90% Subsidy for Solar Pumps, Know the Registration Process

The PM-KUSUM Scheme encourages the use of resources in order to transform the agricultural sector in India. For more details on the PM- KUSUM Scheme, keep reading the article.

The PM-KUSUM- Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan scheme is a flagship initiative launched by the Government of India. It aims to promote the use of solar energy in the agricultural sector, reduce the dependence on conventional electricity, and provide financial benefits to farmers. The Union Budget 2018-19 has kept aside money worth Rs 48,000 crores for this scheme for the next 10 years.

DETAIL

Under this scheme, Government has distributed Rs 1.75 million in off-grid solar water pumps to farmers.

The government has also distributed 10,000 MW Solar plants placed on barren lands.

In the latest initiative government also convert pumps and tube wells to run from solar power.

Farmers will attain a 60% subsidy for using solar pumps. 30% subsidy to be given by the central government and 10 % is required to be paid by farmers.

Eligibility Criteria
Individual farmers, Farmer producer organizations (FPOs), cooperatives, and agricultural service groups are all eligible to participate in the program.

Farmers who own agricultural property are eligible to install independent solar pumps or grid-connected solar power plants.

Farmers who already have pumps that are connected to the grid are eligible to have them solarized.

Also Read:- PM Kisan Samman Nidhi Yojana: Know When Farmers are Getting 14th Instalment & How to Check Status or Get Registered for the Scheme ?

Components of the PM-KUSUM Scheme

Component A: Under this component, farmers are encouraged to set up grid-connected solar power plants on their barren or uncultivable land. 10,000 MW of solar capacity is to be obtained by installing a solar power capacity of 2 MW.

Component B: Installation of 20 Lac Standalone Solar Powered Agriculture Pumps. It focuses on replacing existing agricultural pumps, typically operated by diesel or electricity, with standalone solar-powered pumps. These pumps are equipped with photovoltaic panels that generate electricity, reducing farmers' reliance on traditional energy sources and lowering their operational costs.

Component C: Solarization of Existing Grid-Connected Agricultural Pumps of 15 Lac. It aims to solarize the existing grid-connected agricultural pumps. Solar panels are installed near these pumps to generate electricity, thereby reducing the dependency on conventional electricity sources and making agriculture more sustainable.

Type of Facility

Type Of Loan

Project	Maximum Loan Component	Margin/Borrower Contribution	Front End Subsidy by Central and State in a 50/50 ratio
Component A	70% of the Project Cost	30% of the Project Cost	-
Component B	30% of the Project Cost	10% of the Project Cost	60% of the Project Cost
Component C	30% of the Project Cost	10% of the Project Cost	60% of the Project Cost

To be noted: In the northeastern states, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and A&N Islands, Components B and C of the PM-KUSUM Scheme offer financial support for standalone solar pumps. Under these components, eligible farmers can avail of a Central Finance Assistance (CFA) subsidy equal to 50% of the benchmark cost or the tender cost, whichever is lower. In addition to the CFA subsidy, the state government provides a subsidy of 30%. The farmer's contribution is set at 10% of the total cost, while the remaining 10% can be obtained through bank finance. This arrangement allows farmers in these regions to access substantial financial assistance and leverage bank financing to facilitate the installation of standalone solar pumps, promoting the adoption of clean and sustainable energy solutions in their agricultural operations.

Also Read:- India and Sweden Collaborate on Solar-Powered Smart Farm for Small-Hold Farmer

Benefits of the PM-KUSUM Scheme

The following are the benefits of the PM- KUSUM Scheme:-

Increased Income Generation: By setting up grid-connected solar power plants or using standalone solar pumps, farmers can earn additional income through the sale of surplus electricity or reduced energy costs for irrigation.

Reduction in Operational Costs: Solar pumps eliminate the need for diesel or electricity, resulting in significant savings on fuel and energy expenses for irrigation.

Environmentally Friendly: The scheme promotes the use of clean energy, reducing carbon emissions and contributing to a greener and more sustainable environment.

Improved Agricultural Productivity: Access to reliable and cost-effective solar power enables farmers to efficiently irrigate their fields, leading to increased crop yields and improved agricultural productivity.