A2P Resources - PM KUSUM

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan)

The PM-KUSUM Scheme was launched in 2019 with 3 components:

Component-A: For Setting up of 10,000 MW of Decentralized Grid Connected Renewable Energy Power Plants on barren land. Under this component, renewable energy based power plants (REPP) of capacity 500 kW to 2 MW will be setup by individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA) on barren/fallow land. The power generated will be purchased by local DISCOM at pre-fixed tariff.
Component-B: For Installation of 17.50 Lakh stand-alone solar agriculture pumps. Under this Component, individual farmers will be supported to install standalone solar Agriculture pumps of capacity up to 7.5 HP. Pumps of capacity higher than 7.5 HP can also be installed, however, the financial support will be limited to 7.5 HP capacity.
Component-C: For Solarisation of 10 Lakh Grid Connected Agriculture Pumps. Under this Component, individual farmers having grid connected agriculture pump will be supported to solarise pumps. The farmer will be able to use the generated solar power to meet the irrigation needs and the excess solar power will be sold to DISCOMs at pre-fixed tariff.

This scheme was further revised as follow:

Component A:

- Renewable Energy Power Plant (REPP) of capacity 500 kW to 2 MW will be setup by individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA) hereinafter called Solar Power Generator (SPG). In the above specified entities are not able to arrange equity required for setting up the REPP, they can opt for developing the REPP through developer(s) or even through local DISCOM, which will be considered as SPG in this case.
- DISCOMs will notify sub-station wise surplus capacity which can be fed from such REPP to the Grid and shall invite applications from interested beneficiaries for setting up the solar energy plants.
- The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC).
- DISCOM would be eligible to get PBI @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the Commercial Operation Date (COD).

Component B:

- Individual farmers will be supported to install standalone solar Agriculture pumps in off-grid areas, where grid supply is not available.
- CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar Agriculture pump will be provided. The State Government will give at-least a subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed by farmer, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
- In North Eastern States, Ladakh, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and Andaman And Nicobar Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most 20% will be provided by the farmer.

Component C: Individual Pump Solarisation (IPS):

- Individual farmers having grid connected agriculture pump will be supported to solarise pumps. Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme.
- The farmer will be able to use the generated solar power to meet the irrigation needs and the excess solar power will be sold to DISCOMs.
- CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed by farmer, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
- In North Eastern States, Ladakh, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and Andaman And Nicobar Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give a subsidy of at-least 30%; and the remaining at-most 20% will be provided by the farmer.

Component C: Feeder Level Solarisation (FLS):

- Instead of the individual solar pumps the states can solarize the agriculture feeders.
- Where agriculture feeders are not separated, loan for feeder separation may be taken from NABARD or PFC/REC. Further, assistance for feeder separation may be availed from the Revamped Distribution Sector Scheme (RDSS) of the Ministry of Power. However, mixed can also be solarised.
- Solar plants of capacity that can cater to the requirement of the agriculture load of the selected feeder can be installed through CAPEX/RESCO mode for a project period of 25 years.
- CFA of 30% on the cost of installation of solar power plant (up to Rs. 1.05 Cr/MW) will be provided. However, in the North Eastern States, Ladakh, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep, and Andaman And Nicobar Islands 50% (up to Rs. 1.75 Cr/MW) subsidy is available.
- The farmers will get day-time reliable power for irrigation free of cost or at tariff fixed by their respective state.

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