KUSUM scheme is approved by Cabinet Committee on Economic Affairs

It provide financial and water security to farmers through solar energy capacities

The Cabinet Committee on Economic Affairs (CCEA) has approved the launch of the Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) with the objective of providing financial and water security to farmers.
The Union Government will provide aids of ₹34,422 crore to provide financial and water security to farmers through harnessing solar energy capacities of 25.75 gigawatt (GW) by 2022 .
The proposed scheme consists of three components. All three components of the Scheme combined together are likely to result in savings of about 27 million tonnes of CO2 emission per annum. Therefore, in this regard, the Scheme will have a substantial environmental impact in terms of savings of CO2 emissions.

The Proposed Components of the KUSUM Scheme

The scheme has three componential proposals as follows.,

Component A

10,000 MW of Decentralized Ground Mounted Grid-Connected Renewable Power Plants.
The Renewable power plants of capacity 500 kW to 2 MW will be set up by individual farmers/cooperatives/panchayats etc on their barren or cultivable lands.
The power generated will be purchased by the DISCOMs at Feed-in tariffs determined by respective SERC.
The scheme will open a stable and continuous source of income to the rural landowners. Performance-Based Incentives of Rs 0.40 per unit for five years will be provided to DISCOMs.

Component B

Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps.
The individual farmers will be supported in installing standalone solar pumps of capacity up to 7.5 horse power (HP).
Solar PV capacity in kW equal to the pump capacity in HP is allowed under the scheme.

Component C

Solarization of 10 Lakh Grid-connected Solar Powered Agriculture Pumps.
Individual farmers will be supported to solarize pumps of capacity up to 7.5 HP.
Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme. The farmer will be able to use the generated energy to meet the irrigation needs and the excess available energy will be sold to DISCOM.
This will help to create an avenue for extra income to the farmers, and for the States to meet their RPO targets.

Fund Distribution of the scheme

For both Component-B and Component-C, central financial assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower, will be provided.
The State Government will give a subsidy of 30%, and the remaining 40% will be provided by the farmer.
Bank finance may be made available for meeting 30% of the cost. The remaining 10% will be provided by the farmer.
Higher CFA of 50% will be provided for the North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep and A&N Islands.

Pic courtesy:Jagranjosh

About the author