6 intresting facts about Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan PM KUSUM: for UPSC aspirants
Aims to provide additional income to farmers, by giving them the option to sell additional power to the grid, through solar power projects set up on their barren lands. PM KUSUM has the potential to give a fillip to energy security and the rural economy of India. Target: to add a solar capacity of 30.8 GW by 2022, State Nodal Agencies (SNAs) of MNRE will coordinate with States/UTs, Discoms, and farmers for implementation of the scheme. Intended benefits, Helps discoms by reducing the burden of subsidy provided to agriculture. It Helps states meet RPO targets and reduce their subsidy burden. Helps farmers get additional income, ensures power supply, also incentivizes them to save power and reduce groundwater depletion.
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Scheme is aimed at ensuring energy security for farmers in India, along with honouring 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).
Components of PM-KUSUM Scheme
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/groups of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA) on barren/fallow land. These power plants can also be installed on cultivable land on stilts where crops can also be grown below the solar panels. The renewable energy power project will be installed within five km radius of the sub-stations in order to avoid the high cost of sub-transmission lines and to reduce transmission losses. The power generated will be purchased by local DISCOM at a 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 for replacement of existing diesel Agriculture pumps/irrigation systems in off-grid areas, where grid supply is not available. 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 pumps 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 a pre-fixed tariff
It is notable that the scope of the PM-KUSUM Scheme was modified based on the learning from the first year of the implementation.
CENTRAL FINANCIAL ASSISTANCE (CFA)/ STATE GOVERNMENT SUPPORT
- Component-A: Procurement Based Incentive (PBI) @ 40 paise/kWh or Rs. 6.60 lakhs/MW/year, whichever is less, will be provided for the first five years by MNRE to DISCOMs, for buying the power from farmers/developers
- Component-B & C:
- CFA of 30% of the benchmark cost or the tender cost, whichever is lower. State Government subsidy 30%; Remaining 40% by the farmer
- In the North-Eastern States, Sikkim, J&K, Himachal, Uttarakhand, Lakshadweep and A&N Islands, CFA of 50%, State Government subsidy 30%, Remaining 20% by the farmer
Basic Components of KUSUM
- As per the scheme, 10,000 MW solar plants on barren lands will be built
- Providing sops to DISCOMS so they can purchase the electricity produced
- Solarising existing pumps of 7250 MW as well as solarising government tube wells with a capacity of 8250 MW
- Farmers will be provided 60% subsidy on solar pumps by the government. It will be shared between States and centers whereas 30% will be provided through bank loans. Farmers will bear the balance cost.
- 17.5 lakh solar pumps will be distributed.
The scheme will help in the promotion of decentralized solar power production. It will reduce the transmission losses of discoms and provide support for the improvement of the financial health of DISCOMs by the reduction of subsidy which is a burden to the agriculture sector. Kisan Urja Suraksha evam Utthaan Mahaabhiyan (KUSUM) scheme will also promote water conservation, energy efficiency and provide water security to farmers.