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.

Objectives of PM KUSUM YOJANA Scheme:

  • 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.
  • Under the Kusum scheme Farmers, a group of farmers, panchayat, co-operative societies can apply to plant a solar pump. 
  • The total cost involved in this scheme is divided into three categories in which the Government will help farmers. 
  • Government will provide a subsidy of 60% to farmers and 30% of the cost will be given by Government in the form of loans. 
  • Farmers will only have to give 10% of the total cost of the project.
  •  The electricity generated from the solar panel can be sold by the farmers. 
  • The money earned after selling electricity can further be used for starting a new business.

The three main components of the PM KUSUM YOJANA Scheme includes:

  • Component A: 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Power Plants of individual plant size up to 2 MW.
  • Component B: Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps of individual pump capacity up to 7.5 HP.
  • Component C: Solarisation of 10 Lakh Grid-connected Agriculture Pumps of individual pump capacity up to 7.5 HP.

Salient Features of PM KUSUM YOJANA Scheme:

  • Components A and C of the Scheme will be implemented in Pilot mode till 31st December 2019. 
  • The Component B, which is an ongoing sub-programme, will be implemented in entirety without going through pilot mode.
  • The capacities to be implemented under pilot mode for the Components A and C are as follows:
    • Component A: Commissioning of 1000 MW capacity of ground/ stilt mounted solar or other renewable energy source based power projects
    • Component C: Solarization of 1,00,000 grid connected agriculture pumps

Detailed information regarding three components of the PM KUSUM YOJANA Scheme:

  • Component A:

    • Renewable power projects of capacity 500 kW to 2 MW will be set up by individual farmers/ groups of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO). In the above specified entities are not able to arrange equity required for setting up the REPP, they can opt for developing the REPP through developer(s) or even through local DISCOM, which will be considered as RPG in this case.
    • DISCOMs will notify sub-station wise surplus capacity which can be fed from such RE power plants to the Grid and shall invite applications from interested beneficiaries for setting up the renewable energy plants.
    • The renewable power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC).
    • DISCOM would be eligible to get 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 COD.

  • Component B:

      • Individual farmers will be supported to install standalone solar Agriculture pumps of capacity up to 7.5 HP.
      • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar Agriculture pump will be provided. The State Government will give a subsidy of 30%; and the remaining 40% will be provided by the farmer. Bank finance may be made available for farmer’s contribution, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
      • In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump will be provided. The State Government will give a subsidy of 30%; and the remaining 20% will be provided by the farmer. Bank finance may be made available for farmer’s contribution, so that farmer has to initially pay only 10% of the cost and remaining up to 10% of the cost as loan.

  • Component C:

    • Individual farmers having grid connected agriculture pump will be supported to solarise pumps. Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme.
    • 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.
    • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give a subsidy of 30%; and the remaining 40% will be provided by the farmer. Bank finance may be made available for farmer’s contribution, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
    • In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give a subsidy of 30%; and the remaining 20% will be provided by the farmer. Bank finance may be made available for farmer’s contribution, so that farmer has to initially pay only 10% of the cost and remaining up to 10% of the cost as loan.

How to avail the financial assistance:

  • Component A:

      • The renewable power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC).
      • In case the farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)etc. are not able to arrange equity required for setting up the REPP, they can opt for developing the REPP through developer(s) or even through local DISCOM, which will be considered as RPG in this case. In such a case, the land owner will get lease rent as mutually agreed between the parties.
      • DISCOM would be eligible to get 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 COD.

  • Component B & C

    • State-wise allocation for solar pumps and solarisation of existing grid-connected pumps will be issued by MNRE once in a year, after approval by a Screening Committee under the chairmanship of Secretary, MNRE.
    • On acceptance of the allocated quantity by the implementation agencies and submission of detailed proposals as per MNRE format, within a given time, final sanction will be issued by MNRE.
    • Projects for solarisation of pumping systems shall be completed within 12 months from the date of sanction by MNRE. However, for North Eastern States including Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep and A&N Islands this time limit will be 15 months from the date of sanction. Extension in project completion timelines, up to a maximum period of three months, will be considered at the level of Group Head in MNRE and upto 6 months at the level of Secretary in MNRE on submission of valid reasons by the implementing agency.
    • Funds up to 25% of the MNRE benchmark cost or cost discovered through tenders, whichever is less, for the sanctioned quantity would be released as advance to the implementing agency only after placement of letter of award(s) to the selected vendors.
    • The balance eligible CFA along with applicable service charges would be released on acceptance of the Project Completion Report in the prescribed format, Utilization Certificates as per GFR and other related documents by the Ministry.
    • MNRE CFA and State Government’s subsidy will be adjusted in the system cost and the beneficiary will have to pay only the remaining balance.

Contact information:

  • For Component A, DISCOMs will be implementation agencies.
  • For Component B, DISCOMs/ Agricultural Department/ Minor Irrigation Department/ any other Department designated by the State Government will be the implementing agencies.
  • For Component C, DISCOMs /GENCO/ any other Department designated by the State Government will be the implementing agencies.
  • Each State will nominate an implementation agency in that State for each of the three components.

Required Documents for PM KUSUM YOJANA Scheme:

  • Application form
  • Bank account details
  • Aadhar card

How to apply online for PM KUSUM YOJANA Scheme:

  • Visit PM KUSUM official website
  • Log in with the reference number on the homepage of the portal
  •  Click on the “Apply” button
  • Upon clicking on the apply button, the farmer will be taken to the registration page
  • Enter all the required details such as farmers’ names, mobile numbers, e-mail address, and other information
  • On submitting the application form, the farmer will receive the message stating “Successfully Registered”