The Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme, launched by the Ministry of New and Renewable Energy (MNRE) in 2019, promotes renewable energy adoption in agriculture. It ensures energy security for farmers and aims to increase India’s share of electric power from non-fossil-fuel sources to 40% by 2030.
Key Components
Component A:
Decentralized Grid-Connected Power Plants
Set up solar or renewable energy plants from 500 kW to 2 MW.
Allows farmers to generate and sell surplus power.
Component B:
Standalone Solar Agriculture Pumps
Install solar pumps up to 7.5 HP.
Replaces diesel pumps, reduces costs, and minimizes environmental impact.
Component C:
Solarization of Grid-Connected Pumps
Integrate solar energy into existing grid-connected pumps.
Reduces electricity bills and ensures reliable energy for irrigation.
Eligibility
Eligible entities include individual farmers, SHGs, JLGs, cooperatives, Panchayats, FPOs, and WUAs.
Financial Support
Loan Details
Component A: 70% loan, 30% borrower contribution.
Components B and C: 30% loan, 10% borrower contribution, 60% subsidy.
Competitive interest rates and repayment terms of 7 to 15 years.
Security and Insurance
Secured through asset hypothecation, land mortgage, and Power Purchase Agreement.
Comprehensive insurance for financed assets.
Implementation and Due Diligence
Projects undergo thorough due diligence, and implementation follows MNRE guidelines. The scheme falls under Priority Sector: Agriculture-Farm Credit, supporting sustainable agricultural development through renewable energy.