PM-KUSUM scheme for clean, secure and sustainable energy generation for farmers In India

What is the scheme?

In the post-Paris Climate Agreement in 2015, the Government of India has initiated various policy measures to have 40% of installed power generation capacity from non-fossil fuel sources by 2030. In 2019, the government of India approved PM-KUSUM (Pradhan Mantri Kisan Energy Security and UPliftment Maha Abhiyan). The Central government desires to encourage as many farmers as possible to install new and improved solar pumps on their farms at subsidised rates.

Objectives of the scheme?

• I. The primary objective of the scheme is to provide energy and water security to farmers and enhance their income, de-dieselise the farm sector and reduce environmental pollution.
• II. The scheme aims to provide farmers with advanced technology to generate power.
• III. The solar pumps will not only assist to irrigate the farms but also allow the generation of safe and clean energy.
• IV. In addition, farmers also will be able to sell the extra energy directly to the Power Supply Companies. It will provide them with extra income as well. So, this scheme will bring double benefits.
• V. The scheme also has directed employment generation potential.

What are the major components of the scheme?

• Component A
  The primary objective of the scheme is to provide energy and water security to farmers and enhance their income, de-dieselise the farm sector and reduce environmental pollution.
• Component B
  The scheme aims to provide farmers with advanced technology to generate power.
• Component C
  The solar pumps will not only assist to irrigate the farms but also allow the generation of safe and clean energy.

What are the features of the KUSUM Scheme?

• The scheme is introduced to use solar power effectively by the farmers.
• Beneficiary farmers should pay only 10% of the total cost of the pump. However, 90% of the subsidy will be paid by the Government. For the SC/ST category, self contribution limits to5 per cent only.
• The subsidy amount will get credited directly to the bank accounts of the farmers.
• The farmers can utilize their wastelands for installing solar pumps.
• The RBI treats this scheme under priority sector and hence banks will provide 30% of the amount as loans to beneficiaries.

Who will be eligible for the scheme?

• Individual farmers
• Cooperative agencies
• Gram panchayat
• Farm Producers’ Organisations (FPOs)
• Water Users’ Association (WUAs)

However, priority will be given to small and marginal farmers. In order to minimize water usage for irrigation purposes, preference will be given to farmers using micro-irrigation systems or covered under micro-irrigation schemes. The size of the pump will be selected on the basis of the depth of the water table in the area, the area of the land to be covered under irrigation and the quantity of water required for irrigation.

What is the distribution of financial support from the State and Central governments?

• Under the scheme, Central Financial Assistance (CFA) up to 30% of the Benchmark cost (fixed by MNRE every year) of the standalone solar 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 up to 30% out of 40% share can be availed by the farmer, so that farmer has to initially pay only 10% of the total cost of the pump. However, in the North Eastern States, Sikkim, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Ladakh, Lakshadweep and A&N Islands, higher CFA upto 50% of the benchmark cost of the standalone solar pump will be provided.

Within the scheme, the Government of India has made an allocation of Rs. 50 thousand crores for the Kusum Solar Pump distribution. The government has set a target of converting 17.5 lakh diesel pumps and 3 crore farming pumps into solar-powered pumps within the next 10 years.

How could farmers apply fot the scheme?

• Visit the official website https://kusum.online/
• Click on the apply online button
• Open the Registration option and fill in all required details in the registration form
• Once the registration process is complete, an applicant will receive a user ID and Password on a given mobile number
• Complete the process and submit your application.

Whom to contact to avail the scheme?

• 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 implementation agency in that State for each of the three components

What is the Chief Minister Solar Pump Scheme in Maharashtra?

The guidelines for the online application and registration form of KUSUM Yojana have been issued by the Central government (Component A) and are available to read here. However, each State has their own scheme implementation process but with the same objectives. The State Government of Maharashtra implements the scheme as Chief Minister Solar Pump Scheme. The state government will distribute 25,000 solar water pumps and in the second phase, 50,000 solar pumps will be distributed. Whereas in the third phase, the government will distribute 25,000 solar pumps to the farmers.

What is the beneficiary selection criteria?

A) For 3 and 5 HP Solar Pump:

• A farmer having land with an assured source of irrigation
• A farmer with no conventional electricity connection
• Farmer having up to 5 acres of land is eligible for 3 HP pump and above 5 acre land holder is eligible for 5 HP & 7.5 HP pump
• fA Farmer who did not electricity connection through any government scheme
• Priority to farmers from remote and tribal areas

B) For 7.5 HP Solar Pump:

• The water source must be well or tubewell only
• The solar pump will not be given on well & tubewell coming under over-exploited, exploited or partially exploited villages defined by GSDA
• Solar pumps will be given to beneficiaries coming under villages in the Safe Watersheds having stage of development/ Extraction less than 60 per cent.
• The solar pump will not be given on Borewell coming under rock area
• The depth of the water source must not be more than 60 meters.

Category-wise Beneficiary contribution

For the solar pump set, an eligible applicant has to contribute 10 percent of the total price. However, farmers from SC/ST category will have to pay 5 percent of the solar pump price.

Charges for the application:

For the said scheme, an applicant has to pay Rs. 5000 plus GST amount per MW. Application fees from 0.5 MW to 2 MW has been given below.

• 0.5 MW - Rs. 2500 + GST
• 1 MW - Rs. 5000 + GST
• 1.5 MW - Rs. 7500 + GST
• 2 MW - Rs. 10000 + GST

Required documents:

• Aadhaar Card
• Bank Account Passbook
• Land deeds (7/12 and 8A)
• Mobile Number
• Address Proof
• Passport Size Photo

What is the application process to avail benefit under the CM Solar scheme in Maharashtra?

• 1. An applicant should apply online on MSEDCL Solar Portal
• 2. Fill/Submit complete Information on an A-1 form (upload copy of Documents
  
  • 7/12 Utara copy
  • Adhar Card
  • Cast certificate (for SC/ST beneficiary)
• 3. Within 10 days of receipt of online A-1 form, after doing survey demand note will be issued from field offices. If there is any discrepancy observed, applicant will be informed accordingly
• 4. After payment of Demand Note, Beneficiary will submit/provide option of Agency name (Applicable for 25000 Tender only)
• 5. LOA will be issued to a concern agency in 3 days in ERP
• 6. The Concerned agency has to complete the work in 90 days & upload the Commissioning report, a bill with photos with beneficiary & system etc.
• 7. At every stage, an applicant will be informed by SMS
• 8. Payment will be issued to the agency only after submission of information as above in Sr. No. 6 on Portal

To get more information visit the following important sites. Also for any query contact on the Toll-Free number - 1800-180-3333

• https://mnre.gov.in/
• https://www.mahaurja.com/meda/en/node
• https://kusum.mahaurja.com/solar/beneficiary/register/Kusum-Yojana-Component-B
• https://www.india.gov.in/spotlight/pm-kusum-pradhan-mantri-kisan-urja-suraksha-evam-utthaan-mahabhiyan-scheme