KUSUM(Kisan Urja Suraksha evam Utthaan Mahabhiyan)
Farmers will no longer have to depend on electricity or diesel for irrigation of crops, says an official of the agriculture department. In fact, from the month of October, farmers will get high power solar water pump under the ‘Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme in collaboration with the central as well as the state government. Farmers will be able to irrigate their fields easily without any hindrance. Government has intensified the task under the KUSUM scheme. Moreover, it is worth noting that till now the state government was providing solar water pumps for irrigation to the farmers under the Chief Minister’s new and renewable solar pump scheme.
From October onwards, farmers can avail solar water pumps from the centrally sponsored Farmer Energy and (Kusum) scheme on the basis of Aadhaar card. According to reports, the Central Government has given its responsibility to Energy Efficiency Services Limited (EESL) Company whose main purpose is to reduce dependence on electricity and diesel for irrigation. Also, under this scheme, all irrigation pumps have been targeted to be replaced by diesel or electricity instead of solar energy by 2022.
As per reports, the agency will be selected in the district while the district agency will be selected by EESL through a tender. And solar water pumps will be made available to farmers through the agency. To install solar panels under Kusum scheme, farmers have to pay 10 percent of the total cost of the equipment. Of the remaining amount, 30 percent will be paid by the central government in the form of subsidy while 30 percent by the state government. And for the remaining 30 percent, farmers can take a loan from banks. The government too helps farmers to take loans from the banks.
Moreover, this scheme will reduce polluted gases in the atmosphere.
What is the price?
The cost price of a 2 HP solar water pump is about Rs. 125500.00which will release 1200 to 25 thousand 400 liters of water every day. At the same time, the cost price of 3 HP is Rs156500.00 which is able to release 2500 to 60 thousand liters of water every day.
Total Payable amount
Price-Rs 125500.00
Bank loan:Rs37650.00
Payable amount:12550.00
What will be the benefits?
The best part of this scheme is that there will be a reduction in carbon dioxide along with polluted gases in the atmosphere. It will save diesel and electricity. Farmers can be benefitted in two ways. First of all, they will get 24 hours of electricity for irrigation. And secondly, if they sell additional power to the grid, their income will increase.
- The DISCOM can purchase for Procurement Based Incentive (PBI) @ 40 paise per kWh or Rs 6.60 lakh per MW installed capacity per year, whichever is lower for five years.
What is PM-KUSUM Scheme?
The PM-KUSUM or Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan scheme is an initiative launched by the Government of India under the aegis of the Ministry of New and Renewable energy (MNRE) in 2019. The scheme’s objective is to provide assistance installing off-grid solar pumps on village land (rural areas) and thus decrease their dependence on the grid. It is valid for grid-connected areas.
Name of Scheme | Kusum Yojana |
Launched by | Former Finance Minister– Arun Jaitley |
Ministry | Ministry of Agriculture & Energy |
Beneficiaries | Country farmers |
Major Benefit | Providing Solar irrigation pump |
Scheme Objective | Solar Irrigation pumps at Discounted prices |
Scheme under | State Government |
Name of State | Pan India |
Post Category | Scheme/ Yojana |
The idea is to increase farmers’ income by selling extra electricity generated and reducing the over-dependence of farmers on diesel. The scheme was launched by the Ministry of New and Renewable energy across the nation.
Aim of the KUSUM Scheme
Through this scheme, the government plans to add 25,750 MW of solar electricity by 2022. The Central government plans to infuse Rs. 34,422 crores in this scheme.
Objectives of the KUSUM Scheme
Under the scheme, farmers, cooperative societies, farmers-cooperative groups, and panchayats can apply to install solar pumps. The total cost incurred in implementing the project is so planned that the farmers’ financial burden is negligible. The overall cost is divided into three categories:
- Government to provide a 60% subsidy directly to farmers
- 30% will be provided through soft loans to farmers
- 10% actual cost to be incurred by farmers.
Components of PM-KUSUM Scheme
There are three main components of the KUSUM scheme:
- Component A – The scheme plans to add 10000 MW of Renewable power by establishing individual renewable power plants up-to 2 MW size. These power plants are to be decentralized, ground-mounted, and connected to the grid. These are to be set up on barren land and should come up within a 5km radius of the sub-station.
- Component B – To install, 17.50 lakh standalone off the grid Solar Powered Agriculture Pumps with an individual capacity of the pump up-to 7.5 HP. It is meant to replace existing diesel pumps already in use. A farmer can install a higher capacity pump, but the financial assistance will only be granted to a 7.5 HP agriculture pump.
- Component C – To solarize 10 lakh on-grid or grid-connected agriculture pumps with individual pump capacity up-to 7.5 HP. The excess electricity generated from these plants will be sold to the respective DISCOMS on pre-fixed tariff bases.
How to implement the KUSUM scheme?
For implementing the KUSUM scheme, the State Nodal Agencies of MNRE will coordinate with respective States/UTs, Discoms, and farmers.
The components A and C under the scheme are to be implemented only in Pilot mode until 31stDecember 2019. On successful implementation of the Pilot project, the two components of the scheme will be further scaled up, after receiving necessary approvals.
Component B of the scheme, an ongoing sub-program is to be implemented in its entirety without any requirement of a Pilot project.
Implementation
Component A:
- Individual farmers, farmer groups, panchayats, cooperative societies, or farmer producer organizations can set up renewable power plants with 500 KW to 2 MW capacity. In case of failure to arrange funds, the above entities can collaborate with interested developers or with local DISCOMS to establish renewable power plants.
- Once operational, the DISCOMS will notify regarding sub-station wise surplus power that can be fed to the grid through these renewable projects.
- The surplus renewable power thus generated will be purchased on a feed-in tariff basis by local DISCOMS. The tariff is to be determined and fixed by the State Electricity Regulatory Commission.
- The DISCOMS are eligible for Procurement Based Incentive (PBI) @ 40 paise per kWh or Rs 6.60 lakh per MW installed capacity per year, whichever is lower for five years.
Component B:
- For standalone power pumps with 7.5 HP capacity, central financial assistance would be 30% of the tender cost or benchmark cost. The State government will provide a 30% subsidy, and another 30% will be arranged for farmers through Banks in the form of loans. Farmers will chip in with only 10% of the actual cost of the project.
- In the North East, Himachal Pradesh, Uttarakhand, J&K, Andaman and Nicobar Islands, the Central assistance will be 50% of the tender cost or the benchmark cost, while 30% will be in the form of subsidy provided by State government. The rest 20% will be arranged by the farmer with loans up to 10% by banks and farmers, putting in 10% of the actual cost.
Component C:
- The financial assistance provided to farmers in this grid-connected agriculture pump will be similar to component B. 30% cost will be CFA. In comparison, another 30% by the respective State government and out of rest 40%, Banks will provide loans for 30%, and the farmer has to arrange only 10% of the project’s cost.
- For North-east, Himachal, Uttarakhand, Andaman & Nicobar Islands, 50% project cost will be funded by Central government, rest 30 % by State, and 10% cost is to be given as loan by banks. The farmers have to bear only 10% of the project cost.
Beneficiary
The scheme aims to provide stable and continuous income to farmers or rural landowners for 25 years. It will be put to good use of the barren or uncultivated land. In the case of cultivated land, solar panels are installed at a height that doesn’t disrupt farming.
While providing a regular supply of electricity during the day to agricultural land, the close vicinity of the projects to sub-stations ensures low transmission loss to DISCOMS. It will wean away farmers from using diesel, another positive or win-win situation for the environment and the economy.
To increase farmer’s income and reduce their over-dependence on diesel, the KUSUM scheme was launched. The scheme puts to use the barren land in rural areas and cultivable fields for producing renewable energy. With the government’s financial assistance, both State and Central, the farmers’ financial burden is kept to the minimum. The KUSUM scheme can transform the rural economy for the better and improve the economic conditions of the farmers substantially.
Official Link for application
Helpline Number of KUSUM Yojana:
- Contact Number- 011-243600707, 011-24360404
- Toll-Free Number- 18001803333
Component wise Details of sanctions &State Implementing Agencies (2020-2021)
State | Component-A | Component-B | Component-C | |||
Implementing Agency | Sanc. Capacity | Implementing | Sanc. Quantity | Implementing | Sanc. Quantity | |
(MW) | (No.) | (No.) | ||||
Chhattisgarh | No Demand | – | Chhattisgarh | 20000 | No Demand | – |
Delhi | BSES – Rajdhani Power Ltd. | 10 | No Demand | – | No Demand | – |
BSES – Yamuna Power Ltd. | ||||||
Tata Power – Delhi | ||||||
Haryana | Uttar Haryana bijli | 25 | Department of New and | 15000 | Department of New and | 468 |
Dakshin Haryana bijli | ||||||
Himachal Pradesh | HP govt. Energy | 10 | Department of Agriculture, Govt.of HP | 550 | No Demand | – |
Jharkhand | Jharkhand bijli Vitran | 10 | Jharkhand Renewable | 10000 | Jharkhand Renewable | 500 |
Gujarat | Gujarat Energy | 40 | Gujarat Urja–Vikas | 4000 | No Demand | – |
Karnataka | Bangalore Electricity–SupplyCompany, (BESCOM) | 50 | Karnataka Renewable | 6000 | No Demand | – |
Hubli Electricity –Supply | ||||||
Mangalore Electricity–SupplyCompany, (MESCOM) | ||||||
Chamundeshwari Electricity–Supply Corporation Ltd. (CESC) | ||||||
Kerala | Kerala State–Electricity | 10 |
| – | TBD | 5200 |
Madhya | Madhya Pradesh | 100 | Madhya Pradesh | 25000 | Madhya Pradesh | 15000 |
Maharashtra | Maharashtra State–ElectricityDistribution | 300 | Maharashtra Energy | 30000 | Maharashtra State–Electricity | 9000 |
Manipur | No Demand | – | Manipur Renewable EnergyDevp.agency (MANIREDA) | 20 | Manipur Renewable | 80 |
Meghalaya | TBD | 10 | TBD | 1700 | TBD | 60 |
Odisha | No Demand | – | Orissa Renewable–Energy | 2500 | No Demand | – |
Punjab | Punjab Energy | 30 | Punjab Energy | 4500 | Punjab Energy | 3900 |
Rajasthan | Rajasthan Urja | 325 | Horticulture Department– | 25000 | Jaipur Vidyut–Vitran | 12500 |
Tamil | No Demand | – | Agricultural Engineering | 17500 | TamilNadu –Energy | 20000 |
Tripura | Tripura State–Electricity | 5 | Tripura Renewable–EnergyDevelopment Agency,(TREDA) | 1300 | Tripura Renewable–Energy | 1300 |
Uttar | Uttar Pradesh New and | 75 | Agricultural Department– | 8000 | Uttar Pradesh | 1000 |
Total | | 1000 | | 171070 | | 69008 |
What is the cost distribution to establish a solar plant?
The cost distribution is as follows;
Central and State Government | 60% subsidy |
Banks | 30% as loans to farmers |
Farmers | 10% of the actual cost |
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