Objectives, Components, Subsidy, Who will Apply

What’s PM-KUSUM Scheme?

The PM-KUSUM or Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan scheme is an initiative launched by the Authorities of India underneath the aegis of the Ministry of New and Renewable vitality (MNRE) in 2019. The scheme’s goal is to supply help putting in off-grid photo voltaic pumps on village land (rural areas) and thus lower their dependence on the grid. It’s legitimate for grid-connected areas.

The thought is to extend farmers’ earnings by promoting additional electrical energy generated and lowering the over-dependence of farmers on diesel. The scheme was launched by the Ministry of New and Renewable vitality throughout the nation.

Goal of the KUSUM Scheme

Via this scheme, the federal government plans so as to add 25,750 MW of photo voltaic electrical energy by 2022. The Central authorities plans to infuse Rs. 34,422 crores on this scheme.

Goals of the KUSUM Scheme

Below the scheme, farmers, cooperative societies, farmers-cooperative teams, and panchayats can apply to put in photo voltaic pumps. The overall value incurred in implementing the mission is so deliberate that the farmers’ monetary burden is negligible. The general value is split into three classes:

• Authorities to supply a 60% subsidy on to farmers
• 30% will likely be supplied via smooth loans to farmers
• 10% precise value to be incurred by farmers.

Parts of PM-KUSUM Scheme

There are three most important parts of the KUSUM scheme:

• Element A – The scheme plans so as to add 10000 MW of Renewable energy by establishing particular person renewable energy vegetation up-to 2 MW measurement. These energy vegetation are to be decentralized, ground-mounted, and related to the grid. These are to be arrange on barren land and will come up inside a 5km radius of the sub-station.

• Element B – To put in, 17.50 lakh standalone off the grid Photo voltaic Powered Agriculture Pumps with a person capability of the pump up-to 7.5 HP. It’s meant to exchange current diesel pumps already in use. A farmer can set up the next capability pump, however the monetary help will solely be granted to a 7.5 HP agriculture pump. 

• Element C – To solarize 10 lakh on-grid or grid-connected agriculture pumps with particular person pump capability up-to 7.5 HP. The surplus electrical energy generated from these vegetation will likely be offered to the respective DISCOMS on pre-fixed tariff bases.

Methods to implement the KUSUM scheme?

For implementing the KUSUM scheme, the State Nodal Companies of MNRE will coordinate with respective States/UTs, Discoms, and farmers.

The parts A and C underneath the scheme are to be applied solely in Pilot mode till 31^st December 2019. On profitable implementation of the Pilot mission, the 2 parts of the scheme will likely be additional scaled up, after receiving vital approvals.

Element B of the scheme, an ongoing sub-program is to be applied in its entirety with none requirement of a Pilot mission.

Implementation

Element A:

•  Particular person farmers, farmer teams, panchayats, cooperative societies, or farmer producer organizations can arrange renewable energy vegetation with 500 KW to 2 MW capability. In case of failure to rearrange funds, the above entities can collaborate with builders or with native DISCOMS to determine renewable energy vegetation.
• As soon as operational, the DISCOMS will notify relating to sub-station sensible surplus energy that may be fed to the grid via these renewable initiatives.
• The excess renewable energy thus generated will likely be bought on a feed-in tariff foundation by native DISCOMS. The tariff is to be decided and glued by the State Electrical energy Regulatory Fee.
• The DISCOMS are eligible for Procurement Primarily based Incentive (PBI) @ 40 paise per kWh or Rs 6.60 lakh per MW put in capability per 12 months, whichever is decrease for 5 years.

Element B:

• For standalone energy pumps with 7.5 HP capability, central monetary help can be 30% of the tender value or benchmark value. The State authorities will present a 30% subsidy, and one other 30% will likely be organized for farmers via Banks within the type of loans. Farmers will chip in with solely 10% of the particular value of the mission.
• Within the North East, Himachal Pradesh, Uttarakhand, J&Okay, Andaman and Nicobar Islands, the Central help will likely be 50% of the tender value or the benchmark value, whereas 30% will likely be within the type of subsidy supplied by State authorities. The remaining 20% will likely be organized by the farmer with loans as much as 10% by banks and farmers, placing in 10% of the particular value.

Element C:

• The monetary help supplied to farmers on this grid-connected agriculture pump will likely be just like element B. 30% value will likely be CFA. Compared, one other 30% by the respective State authorities and out of relaxation 40%, Banks will present loans for 30%, and the farmer has to rearrange solely 10% of the mission’s value.
• For North-east, Himachal, Uttarakhand, Andaman & Nicobar Islands, 50% mission value will likely be funded by Central authorities, relaxation 30 % by State, and 10% value is to be given as mortgage by banks. The farmers must bear solely 10% of the mission value.

Beneficiary

The scheme goals to supply secure and steady earnings to farmers or rural landowners for 25 years. It will likely be put to good use of the barren or uncultivated land. Within the case of cultivated land,  photo voltaic panels are put in at a peak that doesn’t disrupt farming.

Whereas offering a daily provide of electrical energy through the day to agricultural land, the shut neighborhood of the initiatives to sub-stations ensures low transmission loss to DISCOMS. It’s going to wean away farmers from utilizing diesel, one other constructive or win-win scenario for the atmosphere and the economic system.

To extend farmer’s earnings and scale back their over-dependence on diesel, the KUSUM scheme was launched. The scheme places to make use of the barren land in rural areas and cultivable fields for producing renewable vitality. With the federal government’s monetary help, each State and Central, the farmers’ monetary burden is stored to the minimal. The KUSUM scheme can rework the agricultural economic system for the higher and enhance the financial situations of the farmers considerably.

Element sensible Particulars of sanctions &State Implementing Companies (2020-2021)

What’s the value distribution to determine a photo voltaic plant?

The price distribution is as follows;

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KUSUM scheme FAQs: