PM-KUSUM Scheme: Extended to 2026, Empowering Farmers with Solar Power

The PM-KUSUM scheme was initially launched to provide farmers with access to solar energy for irrigation and other agricultural purposes. It has been scaled up and expanded over time, with the Ministry of New and Renewable Energy (MNRE) issuing guidelines and amendments to enhance its effectiveness.

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) scheme, a flagship initiative of the Government of India, has been extended until March 31, 2026. This extension, coupled with key amendments, aims to further empower farmers with access to solar energy, promoting sustainability and reducing reliance on traditional power sources.

Background and Objectives

The PM-KUSUM scheme was initially launched to provide farmers with access to solar energy for irrigation and other agricultural purposes. It has been scaled up and expanded over time, with the Ministry of New and Renewable Energy (MNRE) issuing guidelines and amendments to enhance its effectiveness. The scheme has three main components:

  • Component A: Installation of decentralized grid-connected renewable power plants.

  • Component B: Installation of standalone solar-powered agriculture pumps.

  • Component C: Solarization of existing grid-connected agriculture pumps.

Extension and Key Amendments

The PM-KUSUM scheme has been extended until March 31, 2026, with the targets under the three components remaining unchanged. The following key amendments have been introduced to the implementation guidelines:

  1. Increased CFA for Specific Regions: Under Components B and C, Central Financial Assistance (CFA) will be available for pump capacity up to 15 HP to individual farmers in:

    • North-eastern States

    • Union Territories of Jammu & Kashmir and Ladakh

    • States of Uttarakhand and Himachal Pradesh.
      However, the CFA for pumps up to 15 HP will be restricted to 10% of the total installations.

  2. Waiver of Domestic Content Requirement: The condition requiring the use of domestically manufactured solar cells has been waived off for feeder-level solarization projects under Component C, for projects awarded by the implementing agency on or before June 20, 2023.

  3. Budgetary Allocation: The budgetary allocation of Rs. 10,000 crore approved by the Cabinet Committee on Economic Affairs (CCEA) will be utilized before accessing extra-budgetary resources.

Impact of the Amendments

These amendments are expected to have a significant impact on the implementation of the PM-KUSUM scheme:

  • Enhanced Access in Hilly Regions: The increased CFA for higher capacity pumps (up to 15 HP) will benefit farmers in the North-eastern states and hilly regions, where irrigation needs are often greater.

  • Faster Project Implementation: The waiver of domestic content requirements for feeder-level solarization will accelerate the implementation of Component C projects.

  • Efficient Fund Utilization: The budgetary allocation of Rs. 10,000 crore will be utilized efficiently before resorting to extra-budgetary resources.

Implementation and Monitoring

The scheme is implemented by state implementation agencies, and the progress is monitored by the MNRE. The implementation guidelines are subject to amendments based on feedback from stakeholders. The scheme also promotes inter-se transfer of quantities across Components B and C, ensuring flexibility and efficient resource allocation.

Benefits of the PM-KUSUM Scheme

The PM-KUSUM scheme offers several benefits to farmers and the environment:

  • Access to Clean Energy: Provides farmers with access to reliable and clean solar power for irrigation and other agricultural needs.

  • Reduced Electricity Costs: Lowers the cost of electricity for irrigation, reducing the financial burden on farmers.

  • Increased Income: Farmers can sell surplus solar power to the grid, generating additional income.

  • Environmental Sustainability: Promotes the use of renewable energy, reducing dependence on fossil fuels and contributing to a cleaner environment.

  • Water Conservation: Encourages efficient water management through solar-powered irrigation.

Conclusion

The extension and amendments to the PM-KUSUM scheme are a testament to the government’s commitment to empowering farmers and promoting sustainable agriculture. By providing enhanced financial assistance, removing barriers, and ensuring efficient fund utilization, the scheme is set to achieve its objectives and transform India’s agricultural landscape.

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