KUSUM Scheme

KUSUM Scheme: The Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme, introduced by the Central Government, is aimed at boosting solar power production in India while providing benefits of solar farming to farmers. The Union Budget 2018-19 allocated Rs. 48,000 crores for a ten-year period to support this initiative.

In March 2021, the Central Government made amendments to the PM-KUSUM scheme, focusing on solarising agricultural feeders instead of individual pumps. This modification aims to eliminate the need for replacing every existing pump in a village with a solar pump.

The KUSUM Scheme is significant for the UPSC exam, as government schemes are integral to the general awareness and governance sections (Mains GS-II) of the UPSC Syllabus.

Key Details of the Kusum Scheme

Implemented by: The Ministry responsible for the scheme is the Ministry of New and Renewable Energy.

Components:

1. The government will distribute 1.75 million off-grid agricultural solar pumps.
2. 10,000 MW solar plants will be installed on barren lands.
3. State electricity distribution companies (DISCOMS) will purchase excess solar power from farmers on barren lands, receiving incentives for doing so.
4. Tube wells and existing government pumps will be converted to run on solar power.
5. Farmers will receive a 60% subsidy on solar pumps, directly deposited into their bank accounts, shared by the central and state governments. The remaining 30% can be obtained as a bank loan, with farmers bearing only 10% of the cost.

KUSUM Scheme Approved Scheme Components

• Component-A: Addition of 10,000 MW solar capacity through small solar power plants.
• Component-B: Installation of 20 lakh standalone solar-powered agricultural pumps.
• Component-C: Solarisation of 15 lakh existing grid-connected Agriculture Pumps.

KUSUM Scheme Background

As part of India’s commitments under the Intended Nationally Determined Contributions (INDCs), the country aims to increase the share of non-fossil-fuel power capacity to 40% by 2030. The Cabinet approved scaling-up the solar power target from 20,000 MW to 1,00,000 MW by 2022.

KUSUM Scheme Latest Information

• The KUSUM scheme aims to decentralize solar power production by 28,250 MW over five years.
• It offers additional income to farmers by allowing them to sell surplus power to the grid from solar projects on barren lands.
• The 2020-21 Budget expanded the scheme, providing assistance to install standalone solar pumps for 20 lakh farmers and helping 15 lakh farmers solarise their grid-connected pump sets.

What is PM-KUSUM?

Overview: PM-KUSUM is a flagship initiative launched by the Indian government in 2019, aiming to revolutionize the agricultural sector by promoting the widespread adoption of solar energy solutions. Operating on a demand-driven model, it allocates capacities based on requests from various states and union territories.

The scheme envisions a substantial addition of 30.8 GW to solar power capacity by March 31, 2026, facilitated through various components and financial support.

Objectives of PM-KUSUM

• De-dieselisation of the Farm Sector: The scheme seeks to decrease reliance on diesel for irrigation by encouraging the use of solar-powered pumps and other renewable energy sources.
• Increased Farmer Income: By reducing irrigation costs through solar pumps and enabling surplus solar power sales to the grid, the scheme aims to boost farmers’ income.
• Water and Energy Security: Access to solar pumps and promotion of solar-based community irrigation projects aim to enhance water and energy security for farmers.
• Curbing Environmental Pollution: The adoption of clean and renewable solar energy is intended to mitigate environmental pollution from conventional energy sources.

KUSUM Scheme Recent Developments

1. Extension of Scheme Duration: PM-KUSUM extended until March 31, 2026, to promote broader adoption of solar energy solutions among farmers.
2. State-Level Tendering: State-level tendering permitted for standalone solar pumps procurement, enhancing efficiency.
3. Inclusion in AIF and PSL Guidelines: Solarization of pumps under PM-KUSUM included in Agriculture Infrastructure Fund (AIF) and Priority Sector Lending (PSL) Guidelines, improving farmer access to finance.

KUSUM Scheme Major Challenges

1. Geographical Variability: Varying solar radiation levels in different regions impact solar installation efficiency.
2. Land Availability and Aggregation: Challenges in acquiring suitable land and aggregating fragmented parcels for large-scale solar installations.
3. Inadequate Grid Infrastructure: Weak or unreliable grid infrastructure in certain regions hampers the integration of solar power.
4. Lack of Water Regulation: Adoption of solar pumps may strain water resources without proper regulation, impacting groundwater sustainability.

Benefits of the Kusum Scheme

• This will facilitate the decentralization of solar power production. It will help in controlling transmission losses for DISCOMS. There will be a substantial reduction in the subsidy burden on DISCOMS in the agricultural sector.
• Farmers will have the opportunity to sell excess power generated by solar plants on their barren lands to the grid. This initiative will boost the emerging green economy in India. The scheme has the potential to directly generate employment.
• According to available studies, approximately 24.50 job-years are created per megawatt of small-capacity solar installation. Consequently, the program is expected to generate job opportunities equivalent to 7.55 lakh job-years for both skilled and unskilled workers.
• The program will also contribute to the phasing out of diesel-powered pumps in the agricultural sector in India. Additional benefits for farmers resulting from the program include water conservation, improved water security, and enhanced energy efficiency.direct employment.

KUSUM Scheme Drawbacks

KUSUM Scheme Way Forward

• Facilitating State Collaboration: The success of this decentralized solar power scheme hinges on achieving consensus between the Central government and states. Meaningful reforms in India’s power sector are contingent upon a unified agreement involving the Centre, states, and relevant stakeholders.
• Attractive Pricing for Solar Energy: To ensure the scheme’s effective implementation and robust participation from stakeholders, it is imperative to enhance its appeal through more enticing benchmark prices. This becomes particularly crucial considering the challenges posed by higher implementation costs and the need for comprehensive maintenance.
• Promoting Sustainable Agriculture: In addition to transitioning to solar power, farmers are encouraged to embrace drip irrigation practices. This dual approach not only conserves water and energy but also enhances crop yield, contributing to a more sustainable and efficient agricultural system.

The KUSUM scheme represents a transformative initiative in India’s renewable energy landscape, aiming to empower farmers and promote sustainable energy practices.