PM KUSUM Yojana, In India, agriculture is the backbone of the economy, and farmers work tirelessly to ensure we have food on our tables. However, they face numerous challenges, including an erratic power supply for irrigation, increasing costs, and the need to switch to cleaner energy sources. To address these issues, the Indian government introduced the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan, or PM KUSUM Yojana.
Solarizing irrigation has huge potential. Cost-effective and reliable Irrigation can significantly improve farmer incomes and well-being. Shifting away from highly subsidized grid electricity can relieve financial pressure on electricity distribution companies (DISCOMs)—a review of tariff orders in 17 states and Union Territories (UTs) found that 75% of all such subsidies go to agriculture (Aggarwal et al., 2020). Furthermore, solar-powered irrigation can help India shift to clean energy, reducing air pollution and greenhouse gas emissions. At the same time, care must be taken to implement solar irrigation sustainably. There are complicated interconnections between water, energy and food—often called the
“water–energy–food nexus” or WEF nexus—where interventions in one area can cause unexpected impacts in another. In this blog, we’ll break down what this initiative is all about, its key components, and how it’s making a difference for farmers.
Table of Contents
What is the PM KUSUM Scheme?
PM-KUSUM Yojana (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan) is the scheme of Ministry of New and Renewable Energy (MNRE), Government of India aimed at supporting the agriculture sector through setting up of decentralized solar power plants, replacement of agriculture diesel pumps with solar agriculture water pumps and solarisation of existing grid connected agriculture pumps.
In 2019, the Government of India launched a major scheme to promote solar-powered irrigation, Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahaabhiyan (PM-KUSUM Yojana), including:
- Component A – 10 GW of decentralized ground-mounted, grid-connected renewable power plants
- Component B – 2 million standalone solar-powered agriculture pumps
- Component C – 750,000 solarized grid-connected pumps and 750,000 pumps under feeder solarization
Objective of PM-Kusum Yojana 2023
As you know, there are many such states in India where there is drought. And the farmers who do farming there have to suffer losses due to the drought. Keeping this in mind, the Central Government has started the PM Kusum Yojana 2023. The main objective of this scheme is to provide free electricity to the country’s farmers. Under this scheme, solar panel facilities are provided to the farmers for irrigation so that they can irrigate their fields well. Through this PM Kusum Yojana 2023, the farmer will get double the benefit, and his income will also increase. If farmers make more electricity and send it to the grid, they will get their price too.
PM-KUSUM aims to support the beneficiaries through three components under the scheme. The targets under each of the components are:
- Component-A: Setting up of 10,000 MW of Decentralized Ground/ Stilt Mounted Grid Connected Solar up to 2MW
- Component-B: Installation of 20 Lakh Standalone Solar Agriculture Pumps
- Component-C: Solarisation of 15 Lakh Grid Connected Agriculture Pumps through individual pump as well as through Feeder level Solarisation
Who are the key stakeholders under the
scheme?
- Beneficiaries: Individual Farmers, Group of Farmers, Water User Associations, Cooperatives, panchayats, Farmer Producer Organisations (FPO), Primary Agriculture Credit Societies (PACS), Community/cluster based irrigation system as beneficiaries
- Implementing Agencies: State Nodal Agencies, State Agriculture Department, DISCOMs, Minor Irrigation Department, GENCO, any other Department designated by State Government
- Financial Institutions
- Vendors
What are the different renewable technologies covered in the scheme?
Only solar power technology is covered under the scheme for all the components.
What is a solar power system under Component A?
A solar power system utilizes photovoltaic (PV) modules to convert solar energy received from the sun into electricity.
What are Solar Water Pumps/Solar Agriculture Pumps under Component B and C?
A solar agriculture pump is a type of pump which runs on solar energy and does not require any fuel (diesel, kerosene, etc.) or external source of electricity to provide water for irrigation.
Key Components of PM KUSUM Yojana
The PM KUSUM scheme is divided into three main components:
Component A: Small Solar Power Plants
PM-KUSUM Yojana, Component A covers solar power plant with capacity of 500 kW to 2 MW. The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC). Individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA) hereinafter called Solar Power Generator (SPG) can earn from their barren land.
- Goal: Install solar power plants with a capacity of 10,000 MW (enough to power 10 million homes) by 2022.
- Who Benefits: Individual farmers, farmer groups, cooperatives, and more.
- How it Works: Farmers can set up solar energy-based power plants (SEPP) on their land. If they can’t afford it, local DISCOMs (electricity distribution companies) or developers can help.
Who are responsible for installation of Solar Power Plants under Component A?
Individual Farmers/ Group of farmers/ Water User Associations/ Framer Producer Groups/ Primary Agriculture Credit Societies/ Community-Cluster based Irrigation Systems known as Renewable Power Generators (RPGs) can set up Solar Power Plants.
Eligibility of PM-Kusum Yojana Solar Power Plant
The applicant must be a permanent resident of India. Under the PM Kusum Yojana, the applicant can apply for a solar power plant with a capacity of 0.5 MW to 2 MW.
- The applicant can apply for 2 MW of capacity in proportion to his land or the capacity notified by the Distribution Corporation (whichever is less). About 2 hectares of land would be required per MW.
- There is no need for any kind of financial qualification for the project with its own investment under this scheme.
- If the project is being developed by the applicant through a developer, then it is mandatory for the developer to have a net worth of Rupee 1 crore per MW.
Component B: Standalone Solar-Powered Agriculture Pumps
PM-KUSUM Solar Water Pump, Component B covers totally solar powered water pumps. Farmer/ Gaushala/ Water User Association and Community and others can apply for solar water pump up to 10 HP capacity. Central Government will provide 30% subsidy and 30% by State Government. Farmer can take 30% loan from bank and have to pay 10% initially. Farmer will pay loan next 5-6 years through cost saving on diesel and electricity of water pump.
- Goal: Install 20 lakh standalone solar-powered agriculture pumps.
- Who Benefits: Individual farmers in areas without grid supply.
- How it Works: Farmers receive financial support to install solar-powered pumps, reducing their reliance on the grid and lowering their costs.
When you apply scheme form for PM-KUSUM solar water pump then you have select category of solar water pump. You have to select two categories for your solar water pump.
- First you have to select AC or DC water pump.
- Second you have to select submersible (oil filled) or Surface (water filled) water pump.
Who is responsible for installation of Solar Water Pumps under Component B?
The State Implementing Agencies and MNRE empanelled Vendors are responsible for installations of Solar Water Pumps.
Component C: Solarization of Grid-Connected Agriculture Pumps
- Goal: Solarize 15 lakh grid-connected agriculture pumps.
- Who Benefits: Individual farmers with grid-connected pumps.
- How it Works: Farmers are supported in converting their grid-connected pumps to solar power. Excess solar energy can be sold back to DISCOMs.
What is the difference between individual pump solarisation and feeder level solarisation under Component C?
In case of individual pump solarisation, a single grid connected pump is solarised through installation of solar panels; and by connecting it to pump to provide power.
In case of feeder level solarisation, all grid connected pumps connected across a particular feeder can be solarised through a single aggregate solar power plant of larger capacity, which is to be installed near respective substation. This feeder level solar plant will be responsible for supply of electricity to the agriculture pumps through the feeder.
Who is responsible for installation of Solar Water Pumps under Component C?
Under the Individual level Solarisation, the State Implementing Agencies and MNRE empanelled Vendors are responsible for installations of Solar Water Pumps; and for feeder level solarisation, the Power Distribution Companies (DISCOMs) are responsible for installations.
Is there any subsidy provided?
Yes. Subsidy is provided by Central and State Government under Components B and C of the scheme for installing standalone solar agriculture pump and solarisation of grid connected agriculture pumps and no subsidy is available under Component A.
How will the farmer’s share under Component B and C be determined?
After State’s and Central Government’s subsidy share, the beneficiary is required to pay only the
balance amount.
Is there any provision for security of Solar
Water Pumps?
Yes. There is provision of insurance coverage by the vendor for the installed systems against natural calamities and theft.
What if the farmer/beneficiary does not have enough capital to pay his share?
The beneficiaries can easily avail loans as RBI has included PM-KUSUM Yojana under priority sector lending.
How to Apply for Financial Assistance?
- Component A: Solar power generated is purchased by DISCOMs at a feed-in tariff determined by state electricity commissions.
- Components B and C: Funds are allocated by the Ministry of New and Renewable Energy (MNRE) after approval by a screening committee. Once proposals are accepted, funds are released for project implementation.
Benefits of PM KUSUM Yojana for Indian Farmers
- Affordable Solar Solutions: The PM KUSUM Yojana offers affordable solar solutions for farmers, reducing their electricity bills and promoting sustainable energy usage.
- Increased Agricultural Productivity: With reliable daytime power for irrigation, farmers can enhance their crop yields, leading to better incomes and food security.
- Reduced Subsidy Burden: By tapping into solar energy, DISCOMs can reduce the subsidy burden, ensuring financial sustainability.
- Additional Income Source: Farmers can earn extra income by selling surplus solar power to DISCOMs, providing financial stability.
- Environmental Benefits: Solar power is clean and green, reducing greenhouse gas emissions and contributing to a healthier environment.
- Rural Development: PM KUSUM Yojana promotes rural development by creating jobs, fostering economic growth, and improving infrastructure.
- Steady Source of Income by selling power to DISCOM at a pre-determined tariff in case of Component C – Individual Pump Solarisation and incentives against energy conservation savings in case of Component C – Feeder level solarisation & lease revenue in case farmer decides to lease land and develop solar power plant through a developer or DISCOM under Component – A
- No recurring costs of electricity or fuel as solar water pumps do not require any fuel (diesel/kerosene) or electricity to operate
- Due to reliable access to irrigation, a farmer can choose to harvest additional crops thus resulting in extra incomes
PM Kusum Yojana Registration
Under the PM Kusum Yojana, applications can be apply through both online and offline modes. Under this scheme, applications can be made for establishing a solar power plant and giving land on lease. The list of all the applicants who have registered to give their land on lease will be displayed by RREC on the official website. All those citizens who want to take land on lease for setting up solar power plants can get the list of applicants from the RREC website, after which they can contact the registered applicants and apply for setting up the plant. If online registration has been done by the applicant, then the applicant will get the Application ID. In the case of an online application, the applicant must keep the printout of the application form safe with him. If the application is made offline by the applicant, then a receipt will be given to the applicant, which the applicant will have to preserve. All the important documents have to be submitted by the application to apply.
What procedure is generally followed under the PM KUSUM scheme?
Component – a
Step-1: Distribution companies (DISCOMs) notify sub-station wise surplus capacity which can be fed from such REPP to the Grid and invite Expression of Interest from RPGs for setting up the renewable energy plants.
Step-2: The beneficiaries have an option to either set up REPP by self or through developer(s)/ DISCOM by giving their land on lease.
Step-3: The DISCOM or any agency authorized by the DISCOM request to submit non-refundable processing fee from the interested RPGs and issues LoA
Step-4: The RPGs after submitting bank guarantees signs PPA with DISCOMs
COmponent B & Component C
Step-1: One can contact the State Implementing Agency (SIA) or apply online at the SIA portal and submit required documentation (such as identity proof, land documents etc.) as part of their application.
Step-2: Upon Aadhar Authentication, the application is accepted, and initial farmer contribution is submitted.
Step-3: The farmer can select his/her choice of MNRE empanelled vendors. The vendor can also fill the application on his behalf.
Step-4: Post verification of documents by the State Implementing Agency, pump capacity is sanctioned, after which vendor will install the pump at the identified farmer’s site
You can apply for the PM KUSUM Scheme through the PM KUSUM Android application. You can download the official PM KUSUM application from the Google Play Store.
Where can I find the information of the Implementing Agencies under this scheme?
| S. No | State | Component-A | Component-B | Component-C | |||
| Implementation Agency | Sanctioned Capacity (MW) | Implementation Agency | Sanctioned Quantity (Nos) | Implementation Agency | Sanctioned Quantity (Nos) | ||
| 1 | Chhattisgarh | Chhattisgarh State Power Distribution Company Limited | 30 | Chhattisgarh Renewable Energy Development Agency (CREDA) | 20000 | No Demand | – |
| 2 | Delhi | BSES Rajdhani Power Ltd. BSES Yamuna Power Ltd. Tata Power Delhi Distribution Limited | 10 | No Demand | – | No Demand | – |
| 3 | Haryana | Uttar Haryana Bijli Vitran Nigam Limited Dakshin Haryana Bijli Vitran Nigam Limited | 25 | Department of New & Renewable Energy (DNRE), Haryana | 15000 | Department of New & Renewable Energy (DNRE), Haryana | 468 |
| 4 | Himachal Pradesh | HP Govt. Energy Development Agency (HIMURJA) | 10 | Department of Agriculture, Government of Himachal Pradesh | 550 | No Demand | – |
| 5 | Jharkhand | Jharkhand Bijli Vitran Nigam Limited | 10 | Jharkhand Renewable Energy Development Agency | 10000 | Jharkhand Renewable Energy Development Agency | 500 |
| 6 | Gujarat | Gujarat Energy Development Agency | 40 | Gujarat Urja Vikas Nigam Limited | 4000 | Gujarat Urja Vikas Nigam Limited | 18500 |
| 7 | Karnataka | Bangalore Electricity Supply Company Limited (BESCOM) Hubli Electricity Supply Company Limited (HESCOM) Mangalore Electricity Supply Company Limited (MESCOM) Chamundeshwari Electricity Supply Corporation Ltd. (CESC) | 50 | Karnataka Renewable Energy Development Limited (KREDL) | 6000 | No Demand | – |
| 8 | Kerala | Kerala State Electricity Board (KSEB) Ltd | 10 | No Demand | – | No Demand | – |
| 9 | Madhya Pradesh | Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) | 100 | Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) | 25000 | Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) | 15000 |
| 10 | Maharashtra | Maharashtra State Electricity Distribution Company Limited (MSEDCL) | 300 | Maharashtra Energy Development Agency (MEDA) | 30000 | Maharashtra State Electricity Distribution Company Limited (MSEDCL) | 9000 |
| 11 | Manipur | No Demand | – | Manipur Renewable Energy Development Agency | 20 | Manipur Renewable Energy Development Agency (MANIREDA) | 80 |
| 12 | Meghalaya | Meghalaya Energy Corporation Limited (MeECL) | 10 | Meghalaya New & Renewable Energy Development Agency | 1700 | Meghalaya New & Renewable Energy Development Agency | 60 |
| 13 | Mizoram | No Demand | – | Irrigation and Water Resource Department | 200 | No Demand | – |
| 14 | Odisha | No Demand | – | Orissa Renewable Energy Development Agency | 2500 | No Demand | – |
| 15 | Punjab | Punjab Energy Development Agency | 30 | Punjab Energy Development Agency | 4500 | Punjab Energy Development Agency | 3900 |
| 16 | Rajasthan | Rajasthan Urja Vikas Nigam Ltd. | 325 | Horticulture Department, Government of Rajasthan | 25000 | Jaipur Vidyut Vitran Nigam Limited | 12500 |
| 17 | Tamil Nadu | No Demand | – | Agricultural Engineering Department (AED), Government of Tamil Nadu | 17500 | Tamil Nadu Energy Development Agency (TEDA) | 20000 |
| 18 | Tripura | Tripura State Electricity Corporation Limited (TSECL) | 5 | Tripura Renewable Energy Development Agency | 1300 | Tripura Renewable Energy Development Agency | 1300 |
| 19 | Uttar Pradesh | Uttar Pradesh New & Renewable Energy Development Agency | 75 | Agricultural Department, Government of Uttar Pradesh | 8000 | Uttar Pradesh Power Corporation Limited (UPPCL) | 1000 |
| 20 | Assam | Assam Power Distribution Company Limited | 10 | Assam Energy Development Agency | 5000 | Assam Energy Development Agency | 1000 |
| Total | 1000 | 171270 | 82308 | ||||
What if the installations under PM-KUSUM scheme are not as per standards?
In case the installed systems are not as per standards or the asset becomes non-functional on account of poor quality of installation or there is non-compliance of Annual Maintenance Contract (AMC), MNRE reserves the right to blacklist the vendor. Blacklisting may include:
- The Vendor/Firm will not be eligible to participate in tenders for Government supported projects.
- In case, the concerned Director(s) of the firm/ company joins another existing or starts/ joins a new firm/company, the company will automatically be blacklisted.
Want to get more information on the PM-KUSUM scheme?
Yes. For more information, please visit official website or dedicated page of PM-KUSUM Yojana or call at toll free number 1800-180-3333
