Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM)
The PM-KUSUM scheme is one of the most important flagship initiatives of the Government of India in the renewable energy sector. Launched in 2019 by the Ministry of New and Renewable Energy (MNRE), the scheme aims to ensure energy security for farmers while simultaneously promoting the rapid expansion of solar power in rural India.
The ultimate vision of the scheme is to transform the Indian farmer from an Annadata (Food Provider) to an Urjadata (Energy Provider). It also aims to achieve the complete “de-dieselisation” of the Indian agricultural sector.
- Target Period: The scheme has been extended to run until 31st March 2026.
- Overall Capacity Target: It aims to add a total solar capacity of 34,800 MW by March 2026.
- Financial Outlay: The project is backed by a total Central Financial support of ₹ 34,422 crore (which includes service charges to the implementing agencies).
The Three Core Components of PM-KUSUM
three components:
- Component-A (Grid-Connected Solar Plants):
- Objective: Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Grid-Connected Solar or other Renewable Energy-based Power Plants.
- How it works: Farmers, cooperatives, or panchayats can set up small power plants (500 kW to 2 MW) on their barren, fallow, or pasture lands. The electricity generated is purchased by local DISCOMs (Distribution Companies) at a pre-fixed tariff, providing farmers with a steady, risk-free secondary income.
- Component-B (Stand-alone Solar Pumps):
- Objective: Installation of 14 Lakh Stand-alone Solar Agriculture Pumps.
- How it works: This is targeted at off-grid areas where the electricity network has not reached. Farmers are provided hefty subsidies to replace their expensive and polluting diesel water pumps with independent solar water pumps.
- Component-C (Grid-Connected Pumps & Feeder Solarization):
- Objective: Solarisation of 35 Lakh Grid Connected Agriculture Pumps, including Feeder Level Solarization.
- How it works: For farmers who already have grid-connected electric pumps, solar panels are installed to run them. The farmer can use the generated solar power to meet their irrigation needs and sell the surplus solar power back to the DISCOM. Alternatively, entire agricultural electricity feeders can be solarized to provide reliable daytime power to all pumps on that line.
Funding and Subsidy Structure
The financial burden of purchasing solar pumps is shared to make it affordable for the farmer:
- 30% is provided by the Central Government as a subsidy.
- 30% is provided by the State Government as a subsidy.
- 30% is facilitated through bank loans.
- 10% is the only upfront cost borne by the farmer.
Strategic Significance and Benefits
- Increase in Farmer Income: By selling surplus electricity back to the grid, farmers secure a reliable additional source of income, insulating them from crop failure losses.
- Reduction in Subsidy Burden: State governments currently spend thousands of crores heavily subsidizing agricultural electricity. Solarizing these pumps drastically reduces this financial burden on the states.
- Water Conservation: Under Component C, because farmers can earn money by selling surplus electricity, they are incentivized to use their pumps efficiently and save groundwater, rather than leaving electric pumps running unnecessarily.
- Environmental Impact: By replacing millions of diesel pumps, the scheme significantly cuts down diesel consumption, reduces India’s crude oil import bill, and mitigates greenhouse gas emissions.
