The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) was launched by the Ministry of New and Renewable Energy (MNRE) in March 2019. The scheme is designed to de-dieselize the farm sector, provide water and energy security to farmers, and enhance rural income by utilizing barren and uncultivable land for solar energy production.
Objectives of the Scheme
- Promote decentralized solar power production at the village level.
- Reduce dependence on diesel for agricultural pump sets and irrigation.
- Provide a stable, predictable, and long-term income source for farmers by turning them into “energy entrepreneurs.”
- Minimize transmission and distribution (T&D) losses by generating power closer to the load centers (substations).
- Contribute to India’s climate change commitments by reducing carbon emissions from the agricultural sector.
Key Components of PM-KUSUM
The scheme is structured into three distinct components to address the diverse energy needs of the Indian agricultural landscape.
Component A: Decentralized Solar Power Plants
This component focuses on setting up grid-connected, ground-mounted solar or other renewable energy-based power plants (REPP) on barren or uncultivable land.
- Capacity: Individual plants range from 500 kW to 2 MW.
- Implementation: Projects are preferably installed within a 5 km radius of electrical substations to minimize transmission losses.
- Revenue Model: Farmers or developers sign a Power Purchase Agreement (PPA) with the local DISCOMs for 25 years.
- Land Use: While primarily for barren land, agricultural land is permitted if the panels are installed in a “stilt” fashion, allowing for continued farming beneath the structures.
Component B: Standalone Solar Agriculture Pumps
This component targets the installation of standalone solar-powered pumps in off-grid areas where grid connectivity is absent or unreliable.
- Goal: Replace existing diesel-powered pumps to reduce fuel costs and environmental pollution.
- Capacity: Supports pumps up to 7.5 HP. Higher capacities are permissible, but the central subsidy is capped at the 7.5 HP rate.
- Beneficiaries: Individual farmers, Water User Associations (WUAs), and community-based irrigation systems.
Component C: Solarization of Grid-Connected Pumps
This component facilitates the solarization of existing grid-connected agricultural pumps.
- Individual Pump Solarization (IPS): Farmers are provided support to solarize their existing grid-connected pumps. Surplus power generated by the solar panels can be sold to the DISCOM, providing additional income.
- Feeder-Level Solarization (FLS): DISCOMs solarize agriculture feeders to provide day-time reliable power to farmers. This reduces the DISCOM’s subsidy burden and eliminates the need for individual pump solarization in certain areas.
Financial Assistance and Subsidy Structure
The government provides financial support through Central Financial Assistance (CFA) and low-interest loans to make the scheme viable for small and marginal farmers.
| Component | Nature of Support | Key Financial Details |
| Component A | No direct capital subsidy | Farmers/developers earn via long-term PPAs with DISCOMs. |
| Component B | Central/State Subsidy | Typically 60% of the total cost (30% Central + 30% State). |
| Component C | Central/State Subsidy | 30% Central and 30% State share for pump solarization. |
- Loan Availability: Farmers are typically required to contribute only 10% of the project cost as equity, with the balance often covered by bank loans.
- Special Category States: Himalayan states, North Eastern states, and the Union Territories of J&K and Ladakh receive higher assistance/provisions to account for geographical challenges.
Significance and Socio-Economic Impact
- Energy Security: Provides reliable, daytime electricity for irrigation, protecting farmers from the volatility of diesel prices and erratic grid supply.
- Additional Income: Turns land into an asset (via solar power generation/leasing), providing a consistent revenue stream for 25 years.
- Environmental Benefits: Significant reduction in diesel consumption and carbon emissions, promoting sustainable “Green Agriculture.”
- Reduced DISCOM Burden: By generating power near the consumption point, DISCOMs save on infrastructure and operational costs associated with long-distance electricity transmission.
- Synergy with Other Schemes: Often integrated with micro-irrigation schemes (e.g., Per Drop More Crop) to ensure efficient water usage alongside energy transition.