PM Kusum Scheme (Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan)

1. Component A - Installation of 10,000 MW of solar capacity through small Solar Power Plants, with individual plants having a capacity of up to 2 MW. 
2. Component B - Deployment of 20 lakh standalone Solar Powered Agriculture Pumps. 
3. Component C - Solarization of 15 lakh Grid-connected Agriculture Pumps. 

Salient Features of PM Kusum Scheme

1. Component A

1. Under this component, individual farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organizations (FPOs), and Water User Associations (WUAs) are encouraged to set up solar energy-based power plants (SEPP) with capacities ranging from 500 kW to 2 MW.  
2. These entities, collectively referred to as Solar Power Generators (SPGs), can either arrange the necessary equity themselves or opt to develop the SEPP through developers or local DISCOMs. DISCOMs will identify surplus capacity at the sub-station level that can be fed from such SEPP into the Grid and invite applications from interested beneficiaries.  
3. The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by the respective State Electricity Regulatory Commission (SERC).  
4. DISCOMs will also be eligible to receive Performance-Based Incentive (PBI) at a rate of Rs.0.40 per unit purchased or Rs.6.6 lakh per MW of installed capacity, whichever is lower, for five years from the Commercial Operation Date (COD).  
5. This component aims to encourage the adoption of solar power generation among farmers and rural communities, contributing to sustainable energy development and rural empowerment. 
6. Component B 

1. This component aims to support individual farmers in off-grid areas by facilitating the installation of standalone solar Agriculture pumps with capacities of up to 7.5 HP.  
2. The scheme provides a Capital Subsidy of 30% of the benchmark cost or the tender cost, whichever is lower, of the standalone solar Agriculture pump. 
3. Additionally, the State Government will provide a minimum subsidy of 30%, with the remaining 40% contributed by the farmer. Bank finance can be availed by the farmer, allowing them to initially pay only 10% of the cost, with the remaining 30% covered by a loan.  
4. In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and A&N Islands, a Capital Subsidy of 50% of the benchmark cost or the tender cost will be provided, with the State Government contributing a minimum subsidy of 30% and the remaining 20% funded by the farmer.  
5. This component aims to promote the adoption of solar-powered irrigation systems among farmers, enhancing agricultural productivity and sustainability in off-grid areas. 

1. Component C 

Individual Pump Solarisation (IPS):  

1. Under this component, individual farmers with grid-connected agriculture pumps will be supported in solarizing their pumps, allowing them to utilize solar power for irrigation.  
2. The scheme offers a Capital Subsidy of 30% of the benchmark cost or the tender cost of the solar PV component, with the State Government providing a minimum subsidy of 30% and the remaining 40% to be borne by the farmer. Bank finance can be availed by the farmer, enabling them to initially pay only 10% of the cost, with the remaining 30% covered by a loan.  
3. In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and A&N Islands, a Capital Subsidy of 50% of the benchmark cost or the tender cost will be provided, with the State Government contributing a minimum subsidy of 30% and the remaining 20% funded by the farmer.  
4. This component aims to encourage the adoption of solar-powered irrigation systems among farmers, reducing dependency on conventional energy sources and promoting sustainable agriculture practices. 

1. Component C 

Feeder Level Solarisation (FLS):  

1. Under this component, states have the option to solarize agriculture feeders, providing daytime reliable power for irrigation free of cost or at tariffs fixed by their respective state governments.  
2. Guidelines for this initiative were issued on 4 December 2020 , enabling the installation of solar plants capable of catering to the agriculture load of selected feeders through CAPEX/RESCO mode for a project period of 25 years.  
3. A Capital Subsidy of 30% of the installation cost of the solar power plant (up to Rs.1.05 Cr/MW) will be provided, with a 50% subsidy available in the North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and A&N Islands.  
4. This component aims to promote the adoption of solar power generation at the feeder level, enhancing energy security and sustainability in rural areas while reducing dependence on conventional energy sources. 

How can financial assistance for this scheme be availed 

Given below are the ways through which the financial assistance for this scheme can be availed: 

1. Component A - Under this component, DISCOMs will purchase solar power at a feed-in-tariff (FiT) approved by the respective State Electricity Regulatory Commission (SERC). If farmers or groups cannot arrange equity, they can opt for third-party developers or DISCOMs, with landowners receiving lease rent. Performance-Based Incentives (PBI) are available one year post-commissioning for five years, contingent on submitting claims with supporting documents. 

1. Component B & Component C (IPS) - MNRE will allocate state-wise quotas for solar pumps and grid-connected pump solarization. Final sanctions will follow detailed proposals submitted within specified timelines. Projects must be completed within 24 months, with possible extensions of up to six months. Funds up to 40% of the applicable Capital Subsidy will be released as an advance, with the balance released upon project completion and acceptance. 
2. Component C (FLS) - Under CAPEX, DISCOMs receive 40% advance upon tendering completion, with the balance released upon successful commissioning. For RESCO, no advance is given, with up to 100% of the eligible Capital Subsidy released upon commissioning and declaration of the Commercial. 

Conclusion 

PM Kusum is a good initiative by the Indian Government to improve the lives of farmers in a sustainable manner. Installation of solar plants will improve the conditions of farmers in India who are an important contributor to the economy and ensure they get the due for all their hard work.