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Home Agriculture

PM-Kusum scheme

August 23, 2021
in Agriculture
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PM-Kusum scheme
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In news- Recently, the Union  Minister for Power and New and Renewable Energy has reviewed the progress of implementation of PM-KUSUM and Rooftop Solar Programme Phase-II with States/UTs. 

About PM-KUSUM scheme

  • PM-KUSUM refers to Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM).
  • It was launched by the Ministry of New and Renewable Energy (MNRE) in 2019.
  • The scheme is aimed at ensuring energy security for farmers in India, along with honouring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40% by 2030 as part of Intended Nationally Determined Contributions (INDCs).
  • PM-KUSUM was launched  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.

Scheme components 

 The Scheme consists of three components:

Component A-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 etc
  • These power plants can also be installed on cultivable land on stilts where crops can also be grown below the solar panels.
  •  The power generated will be purchased by local DISCOM at pre-fixed tariff.

Component B- Installation of 17.50 lakh standalone Solar Powered 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.
  • Pumps of capacity higher than 7.5 HP can also be installed, however, the financial support will be limited to 7.5 HP capacity.

Component C-Solarisation of 10 Lakh Grid Connected Agriculture Pumps: 

  • Under this Component, individual farmers having grid connected agriculture pumps(7.5 HP) 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.

Central Financial Assistance / State Government Support

    • Component-A: 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/developers.
  • Component-B & C:
    • CFA of 30% of the benchmark cost or the tender cost, whichever is lower. State Government subsidy 30%; Remaining 40% by the farmer.
    • 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.

Implementation 

State Nodal Agencies (SNAs) of MNRE are coordinating with States/UTs, Discoms and farmers for implementation of the scheme.

Recent amendments to the scheme

The Ministry of New and Renewable Energy has issued following amendments/clarifications in the Scheme Implementation Guidelines:

The amendments/ clarifications in Component-A are:

  • Besides barren, fallow and agricultural land, solar power plants can also be installed on pastureland and marshy land of farmers.
  • To support small farmers, the solar power projects smaller than 500 kW may be allowed by States based on techno-commercial feasibility.
  • The selected Renewable Power Generator (RPG) shall commission the solar power plant within twelve months from date of issuance of Letter of Award (LoA).
  • There shall be no penalty to RPG for shortfall in solar power generation from minimum prescribed Capacity Utilization Factor (CUF).

Amendments/clarifications for Component-B

  • MNRE will retain 33% of eligible service charges for nation-wide Information, Education and Communication (IEC) activities. 
  • The ministry may release 50% of eligible service charges for the sanctioned quantity after placement of LoA for preparatory activities.
  • It is now decided to allow the joint venture of the manufacturer of solar pump/solar panel/solar pump controller with integrators in the Centralised tender.
  • As part of amended guidelines a separate bid price for solar water pumping system with Universal Solar Pump Controller (USPC) will be invited and subsidy will be made available for these pumps.  

Amendments/clarifications for Component-C

  • The Ministry order says, “MNRE may release 50% of eligible service charges for the sanctioned quantity after placement of LoA for preparatory activities.
  • Now it has been clarified by the Ministry that for grid connected pumps used by Water User Associations /FPOs/ PACS or for cluster based irrigation system, the CFA will be allowed for solarisation of pump capacity higher than 7.5 HP considering upto 5 HP capacity for each individual in the group.
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Source: PIB
Tags: PIBPrelims

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