Government Scales Up PM-KUSUM Scheme: Enhanced Support for Farmers’ Energy and Water Security

The Government launched PM-KUSUM scheme in March, 2019, which has been scaled-up in January 2024 with the objective to provide energy and water security to farmers, enhance their income, de-dieselize the farm sector, and reduce environmental pollution.

The following are the three components under the PM-KUSUM scheme benefiting the farmers:-

i.  Component-A: Farmers can set-up Decentralized Ground/ Stilt Mounted Grid Connected Solar or other Renewable Energy based Power Plants on their land up to the capacity of 2MW. The Renewable Energy Power Plant (REPP) can be installed by the farmers on their own land either directly by themselves or in partnership with group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA), or through a developer. The renewable power generated from these power-plant is purchased by DISCOMs at the pre-fixed levelized tariff. In case farmers lease their land to the developer they are also eligible for lease rent.

DISCOM are eligible to get a Performance Based Incentive (PBI) @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the Commercial Operation Date. The DISCOMs can, if they desire so, pass on the PBI given to them by the Central Government under this component, to the REPP owner to get a more competitive tariff of RE Power.

ii. Component-B: Under this Component farmers can install the Stand-alone Solar Agriculture Pumps for irrigation. The Government provides the Central Financial Assistance (CFA) of 30% (or 50% for North Eastern Region/Hilly region/Islands) for the stand-alone solar Agriculture pump.

iii. Component-C: This Component enables solarisation of grid-connected Agriculture Pumps under its Individual Pump Solarisation (IPS) mode & also Feeder Level Solarisation (FLS) of agricultural load. The Government provides the Central Financial Assistance (CFA) of 30% (or 50% for the North Eastern Region/Hilly region/Islands) under Component-C for both IPS & FLS. This enables the farmers to access day-time assured solar energy.

The total numbers of farmers benefited in the country through the PM-KUSUM scheme as on 30.06.2024 is 4,11,222.

As per information provided by the State Implementing Agency of Uttar Pradesh till 29.07.2024 the PM-KUSUM has provided benefits to 51,097 farmers in the State.

Under the Component-B and Component-C of the PM-KUSUM scheme, Government of India provides the Central Financial Assistance (CFA) of 30% (or 50% for the North Eastern Region/Hilly region/Islands) for the installation of the Standalone agriculture pumps and solarisation of the grid-connected agriculture pumps.