PM-KUSUM Scheme

February 4, 2023

1746

In News

The deadline for The Pradhan Mantri Kisan Urja Suraksha Evam Uttham Mahabhiyan (PM-KUSUM) scheme to install 30,000 MW solar power capacity in rural India by 2022, has now been pushed to 2026 due to Covid- 19.

About PM-KUSUM

It is a scheme by the Ministry of New and Renewable Energy launched in 2019.
It is aimed at ensuring energy security for farmers in India, along with 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).

The Scheme consists of three components:

Component A: Addition of 10,000 MW of solar capacity through installation of small solar power plants of capacity up to 2 MW. Procurement Based Incentive (PBI) will be provided for the first five years by MNRE to DISCOMs, for buying the power from farmers/developers.
Component B: Installation of 20 lakh standalone solar powered agricultural pumps.
Component C: Solarisation of 15 lakh existing Grid-connected Agriculture Pumps.
Centre’s Assistance of 30%, State Government subsidy 30%; Remaining 40% by the farmer will be provided in component B and C.
In North Eastern States, Sikkim, J&K, Himachal, Uttarakhand, Lakshadweep and A&N Islands, Centre’s assistance of 50%, State Government subsidy 30%, Remaining 20% by the farmer.

Expected Outcomes

Employment Generation: The scheme has direct employment generation potential upto 7.55 lakh jobs for skilled and unskilled workers.
Enhancing farmers’ income is one of the most important policy priorities of the Government. PM-KUSUM will serve this objective by replacing high cost diesel with less expensive solar energy.
Day-time power: Providing solar panels for irrigation under PM-KUSUM would result in day-time reliable power to farmers making irrigation easier for them and also avoiding overuse of water and power.
Reducing Carbon Emissions: PM-KUSUM will lead to reducing carbon emissions by as much as 32 million tonnes of CO2 per annum.
Boost to domestic production: PM-KUSUM has a mandatory requirement for deploying domestically produced solar cells and modules under Component B and C. This will create demand for domestically produced solar cells and modules and thus give fillip to domestic solar manufacturing.