140 MW solar power plants set up, 2.73 lakh Stand-alone Solar Pumps installed under PM-KUSUM: Union Power and New & Renewable Energy Minister – EQ

In Short : The statement highlights the progress made under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) initiative, stating that 140 megawatts (MW) of solar power plants have been set up and 2.73 lakh stand-alone solar pumps installed. PM-KUSUM is a scheme in India aimed at promoting the use of solar energy in the agricultural sector by providing financial and policy support for the installation of solar pumps and solar power plants. This initiative contributes to sustainable agricultural practices and rural electrification.

In Detail : The Union Minister for New & Renewable Energy and Power has informed that the main objectives of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) include de-dieselisation of the farm sector, providing water and energy security to farmers, increasing the income of farmers and curbing environmental pollution. The Scheme has three components targeted to achieve solar power capacity addition of 34.8 GW by 31.3.2026 with total central financial support of Rs. 34,422 Cr. Other salient features of the Scheme are given below.

Other salient features of PM- KUSUM Scheme

State-wise targets or fund allocation is not made under PM-KUSUM as it is a demand driven scheme. The capacities are allocated based on demand received from the States/UTs. Further, the funds are released to States/UTs on achieving certain milestones.

Based on the demand received from the State of Tamil Nadu, the Ministry of New & Renewable Energy has released Rs 31.51 Crores so far, under this Scheme.

State/UT wise solar pumps allocated and installations achieved so far are furnished below.

Progress under PM-KUSUM (as on 31.10.2023)

Major steps, including new initiatives, taken by the Government to achieve PM KUSUM targets in timely manner include:

PM-KUSUM Scheme has been extended till 31.03.2026.
Central Financial Assistance (CFA) is available for pump capacity up to 15 HP (increased from 7.5 HP) to the individual farmers in the North-eastern States, Hilly States/UTs and Islands UTs, and for each farmer in the cluster/ community irrigation projects in high water table areas in all the States/ UTs.
Meetings with Banks/FIs for availability of low cost financing to farmers.
State level tender allowed for procurement of standalone solar pumps
Time period extended for implementation to 24 months from the date of initial sanction.
Requirement of performance bank guarantees under Component-A and Component-C (Feeder Level Solarization) relaxed.
Tender conditions have been revised to increase the installer base in order to expedite extending benefit under the Scheme.
Solarization of pumps under the Scheme included under Agriculture Infrastructure Fund (AIF) to provide subsidized loans to farmers.
Scheme included under Priority Sector Lending (PSL) Guidelines of the Reserve Bank of India (RBI) to enable ease of accessing finance.
Specifications & testing procedure of the solar pumps have been revised time to time to promote quality of installations.
Web-Portals at Central and at State levels have been developed for monitoring of Scheme.
Creating publicity and awareness including through CPSUs.
Toll free number provided for ease of getting information on the Scheme.
Regular monitoring of the progress and issuance of clarifications and amendments to the scheme guidelines based on lessons learnt during implementation
Extension granted for projects sanctioned under the Scheme based on the progress and milestones achieved.
The Guidelines of the scheme have been revised on 12.07.2023 to simplify the land aggregation process in Component ‘C’.
The Ministry has issued Benchmark Cost under Component ‘B’ during September, 2023.
The Scheme is amended with removal of mandatory State share provision, vide OM dated 20.11.2023.
The exemption of DCR content under Component ‘C’ extended till 31.03.2024, vide OM dated 11.09.2023.
The DoE, vide OM dated 06.09.2023, approved revision of targets from 35 lakhs to 49 lakhs under Composite ‘B’ & ‘C’.

This information has been given by the Union Minister for New & Renewable Energy and Power Shri R. K. Singh, in a written reply to a question, in Rajya Sabha today, December 12, 2023.