PM KUSUM Scheme

3/8/20254 min read

PM Kusum Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is a flagship initiative by the Government of India, aimed at providing financial support to farmers for solar power generation and promoting renewable energy in the agricultural sector. The scheme was launched in 2019 by the Ministry of New and Renewable Energy (MNRE). Its primary objective is to help farmers reduce their dependence on traditional energy sources and diesel, as well as to generate additional income by selling excess solar power to the grid.

Here are the full details of the PM Kusum Yojana:

Objectives of PM Kusum Yojana:

  1. Solarization of Farms: To promote the installation of solar-powered irrigation pumps and solar power generation systems on agricultural lands, which will reduce dependence on conventional grid electricity and diesel-powered pumps.

  2. Income Generation: To help farmers earn additional income by selling surplus solar power back to the grid, thus improving their financial condition.

  3. Encourage Renewable Energy: The scheme supports the use of clean and renewable energy, contributing to the government's renewable energy goals and reducing carbon emissions.

  4. Energy Security for Farmers: To provide farmers with a reliable, affordable, and sustainable energy source for irrigation and other agricultural activities.

Components of PM Kusum Yojana:

The PM Kusum Yojana is divided into three main components:

Component A: Solar Pumps (Off-grid)

  • Purpose: To provide off-grid solar-powered irrigation pumps to farmers for irrigation purposes.

  • Details: Solar-powered pumps replace the need for conventional electricity and diesel-powered pumps. The scheme supports solar pumps of various capacities (up to 7.5 HP).

  • Target Beneficiaries: Small and marginal farmers, as well as those with inadequate or unreliable access to electricity.

  • Support: The government provides a subsidy of up to 60% of the cost of the pump. The remaining amount is to be borne by the farmer or through loans.

Component B: Grid-Connected Solar Power Plants

  • Purpose: To set up grid-connected solar power plants on agricultural land. This will allow farmers to produce solar power and sell excess power to the grid.

  • Details: The scheme supports solar power plants ranging from 500 kW to 2 MW capacity that can be installed on barren or fallow land owned by farmers. Farmers can sell the excess power generated to the electricity grid and earn income.

  • Target Beneficiaries: Farmers who own barren or unused land and are willing to install solar power plants on it.

  • Support: The government provides a subsidy of 30% (up to 40% for states in the northeast) of the cost of the solar power plants. Financing options are also available.

Component C: Solarization of Distribution Networks

  • Purpose: To solarize agricultural distribution systems to improve the reliability of power supply for irrigation.

  • Details: This component focuses on solarizing the agricultural feeder lines and distribution networks to reduce reliance on grid electricity for agricultural activities.

  • Target Beneficiaries: State electricity distribution companies and utilities.

Financial Assistance and Subsidy Structure:

The financial support under the scheme is provided in the following ways:

  1. Subsidy for Solar Pumps:

    • Small and Marginal Farmers: 60% subsidy on the cost of the solar pump.

    • Other Farmers: 40% subsidy on the cost of the solar pump.

    • Loan: The remaining cost is financed through loans from banks or other financial institutions.

  2. Subsidy for Solar Power Plants:

    • General Areas: 30% subsidy for the installation of grid-connected solar power plants (up to 2 MW).

    • North-Eastern States: 40% subsidy for the installation of solar power plants.

  3. Interest Subsidy: The government also provides an interest subsidy on loans taken by farmers for installing solar-powered irrigation systems.

Eligibility Criteria:

  1. Farmers: The scheme is primarily aimed at farmers, especially those with small and marginal landholdings, who can benefit from solar-powered irrigation pumps and grid-connected solar power systems.

  2. Land Ownership: For Component B (grid-connected solar plants), farmers need to have barren, uncultivated, or fallow land where solar plants can be set up.

  3. Solar Pumping System: Farmers can apply for off-grid solar pumps under Component A if they meet the necessary conditions, such as not having reliable access to grid electricity.

  4. Age Criteria: There is no specific age limit for farmers, but the applicant must be an Indian citizen.

  5. Electricity Access: Farmers with irregular or inadequate power supply can benefit from solar pumps (Component A).

Implementation Process:

  1. Registration: Farmers must register for the scheme through the official website or through local distribution companies.

  2. Application: Once registered, farmers need to submit an application form with required documents, including land ownership proof, Aadhaar card, bank details, etc.

  3. Selection Process: The applications are reviewed by the concerned authorities, and eligible farmers are selected based on the scheme's criteria.

  4. Subsidy & Loan Disbursement: After selection, farmers are provided with financial assistance. For solar pumps, a subsidy is provided upfront, while for solar power plants, financing options (including loans) are made available.

  5. Installation: After financial arrangements, the installation of solar pumps or solar power plants is carried out by authorized agencies or solar equipment manufacturers.

  6. Monitoring & Maintenance: The installation and functioning of the systems are monitored by local authorities, and maintenance services are often provided for a few years after installation.

Benefits of PM Kusum Yojana:

  1. Reduced Dependence on Diesel and Grid Power: The solar-powered pumps reduce the dependence on costly and environmentally harmful diesel-powered pumps and unreliable grid power.

  2. Increased Income for Farmers: Farmers can sell surplus power generated from their solar power plants to the grid and earn extra income, boosting their financial stability.

  3. Lowering Power Costs: By switching to solar pumps, farmers can significantly reduce their electricity or fuel costs, helping them improve their profitability.

  4. Environmentally Friendly: The adoption of solar energy helps reduce the carbon footprint and contributes to India's renewable energy goals.

  5. Sustainable Agriculture: Solar energy enhances irrigation efficiency, leading to sustainable farming practices and improved agricultural productivity.

How to Apply for PM Kusum Yojana?

Farmers can apply for the PM Kusum Yojana through the following steps:

  1. Online Application: Visit the official PM Kusum Yojana portal or the State Government’s renewable energy agency website.

  2. Submission of Documents: Submit the required documents, such as land ownership proof, Aadhaar card, bank details, etc.

  3. Verification: The application will be verified, and the farmer will be selected based on the eligibility criteria.

  4. Installation: Once selected, farmers will be provided with the necessary subsidies and loans for the installation of solar systems.

Conclusion:

The PM Kusum Yojana is a significant step in the modernization of India’s agriculture sector by promoting the use of clean, renewable energy. It offers farmers an opportunity to reduce costs, increase income, and adopt sustainable farming practices. With a focus on solar irrigation systems and solar power plants, this scheme is a win-win for farmers, the environment, and the economy.

If you're a farmer or know someone who could benefit, it's a great opportunity to explore!