PM-KUSUM Scheme

Context– The deadline for The Pradhan Mantri Kisan Urja Suraksha Evam Uttham Mahabhiyan (PM-KUSUM) scheme to install 30,000 MW solar power capacity in rural India by 2022, has been pushed to 2026 due to Covid- 19.

PM-KUSUM

• This is a scheme by the Ministry of New and Renewable Energy launched in 2019.
• It is aimed at ensuring energy security for farmers in India, along with India’s commitment to grow 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).

The Scheme consists of three main components 

• Component A: Addition of 10,000 MW of solar capacity through installation of small solar power plants of capacity up to 2 MW. Procurement Based Incentive (PBI) will also be provided for the first five years by MNRE to DISCOMs, for buying the power from farmers/developers.
• Component B: Installation of 20 lakh standalone solar powered agricultural pumps.
• Component C: Solarisation of 15 lakh current Grid-connected Agriculture Pumps.
• Centre’s Assistance of 30%, State Government subsidy 30%; Remaining 40% by the farmer will be provided in both component B and C.
• In North Eastern States such as Sikkim, J&K, Himachal, Uttarakhand, Lakshadweep and A&N Islands, Centre’s assistance of 50%, State Government subsidy 30%, Remaining 20% by the farmer.

Expected Outcomes

• Employment Generation: The scheme has direct employment generation potential upto 7.55 lakh jobs for skilled as well as unskilled workers.
• Enhancing farmers’ income is one of the most crucial policy priorities of the Government. PM-KUSUM will serve the objective by replacing high cost diesel with less expensive solar energy.
• Day-time power: Providing solar panels for irrigation under PM-KUSUM would result in day-time reliable power to farmers making irrigation convenient for them and also avoiding overuse of water and power.
• Reducing Carbon Emissions: PM-KUSUM will lead to deducting carbon emissions by as much as 32 million tonnes of CO2 per annum. 
• Boost to domestic production: PM-KUSUM has a mandatory requirement for deploying domestically produced solar cells and modules under Component B and C. 
• It will create demand for domestically produced solar cells and modules and thus give  fillip to domestic solar manufacturing.

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