Kusum Scheme: Objectives, Features, Benefits & More| UPSC Notes

The Pradhan Mantri Kisan Urja Suraksha is also known as the Utthan Mahabhiyan (PM KUSUM) Scheme. It has been launched by the Ministry of New and Renewable Energy (MNRE) to facilitate the installation of solar pumps and grid-connected solar and other renewable power plants across India. The primary objective of this scheme is to augment the country's solar and renewable energy capacity by 25,750 MW before 2022. The scheme's implementation will be supported by a total central financial allocation of Rs. 34,422 Crore, which includes service charges for the implementing agencies. Notably, the scheme has been extended until March 31, 2026.

PM Kusum Scheme UPSC is one of the most important topics for the UPSC IAS Examination. It is covered in the Government Schemes Section of UPSC!

This article on PM Kusum Scheme UPSC will discuss its features, benefits, eligibility criteria, significance, challenges, and way forward in detail. This will be very useful for aspirants in the UPSC Prelims Exam.

What is PM Kusum Scheme?

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) is a government initiative launched in 2019. It aims to promote the use of solar energy and enhance farmers' income by providing financial and policy support for the installation of solar-powered agricultural pumps and solarization of existing grid-connected agricultural pumps.

Background of the Scheme

The PM KUSUM Scheme was launched by the Ministry of New and Renewable Energy (MNRE) in response to the challenges faced by farmers in accessing reliable and affordable power for agricultural operations. It aims to reduce farmers' dependence on diesel pumps, promote sustainable energy practices, and contribute to the overall energy security of the country.

Objectives of PM Kusum Scheme

The main objective of PM Kusum Yojana is to assist the farmers in installing off-grid solar pumps in rural areas, thereby decreasing their dependence on grid-connected areas.

Another objective of this scheme is to ensure the financial and water security of the farmers.

Also, PM Kusum Yojana will ensure that the farmers can set up solar power generation systems on otherwise barren lands and sell this generated power to the electricity companies. Thus, this scheme will also ensure that the non-agricultural income of the farmers is enhanced substantially.

Study the Mid-Day Meal Scheme here.

Components of PM Kusum Scheme

Component A: Installation of solar pumps

Under this component, solar-powered agricultural pumps of capacity 7.5 HP (horsepower) are provided to farmers. The scheme covers individual farmers, cooperatives, and community-based organizations.

Component B: Solarization of existing pumps

This component focuses on solarizing the existing grid-connected agricultural pumps. It involves replacing the conventional pumps with solar pumps to reduce electricity consumption and promote clean energy.

Component C: Grid-connected solar power plants

This component involves setting up small-scale solar power plants on barren or fallow land owned by farmers. The surplus power generated from these plants can be sold to the grid, providing an additional source of income for farmers.

Also, read the Ayushman Bharat Yojana for UPSC here.

Features of PM Kusum solar Scheme

Initially, the Central Government planned to distribute 1.75 million off-grid agricultural solar pumps. The barren lands of the farmers will be used to install around 10000 Mega Watts Solar Plants.

The state electricity distribution companies will purchase the additional electricity generated using the solar power plants installed on these barren lands, also called the DISCOMS. The DISCOMS will also be able to get subsidies to buy this electricity.

Under this scheme, the farmers will be able to get a subsidy of around 60 % on solar pumps, which will be directly deposited into the bank accounts of these farmers using the Direct Benefit Transfer (DBT). The Central and State Governments will share this subsidy amount, while 30% will be provided as a loan to the farmers. Thus, only 10% cost will have to be borne by the farmers.

Also, study Pradhan Mantri Mudra Yojna from the linked article.

Implementation of the KUSUM Scheme

Source: MNRE

The scheme is implemented by state implementing agencies designated by the respective state governments. The MNRE provides financial assistance to the states in the form of central financial assistance (CFA) for the implementation of the scheme. The states are responsible for project planning, beneficiary selection, distribution of solar pumps, and monitoring of the scheme's progress.

Eligibility for the PM KUSUM Scheme

Farmers who own agricultural land are eligible to take part in the PM KUSUM Scheme. Individual farmers, cooperatives, and community-based organizations can apply for solar pumps or solarization of existing pumps, depending on the specific components of the scheme.

Also, read the article on the National solar mission!

Benefits of the PM KUSUM Scheme

The PM KUSUM Solar scheme will provide a stable source of income to rural landowners for 25 years by utilizing unused/barren land for solar projects.

• Farmers can continue growing crops as solar panels will be above the minimum height on cultivated fields.
• It will ensure sufficient local solar power for rural loads and agricultural pumps during the daytime.
• Being decentralized, it will reduce transmission losses for state utilities and Discoms.
• The scheme will also help Discoms meet renewable purchase obligations.
• Solar pumps will save diesel costs for irrigation and provide reliable power without adding grid load, benefiting 17.5 lakh farmers over 4 years.

Also, read the article on the Solar Charkha Mission!

Challenges of the PM Kusum Solar Scheme

The installation of solar power plants and solar pumps involves significant upfront costs. The initial investment required to set up the equipment can be a barrier to adoption.

• Many farmers in rural areas may not be aware of the benefits and technical aspects of solar energy solutions. They may lack the necessary skills to operate and maintain solar pumps and power plants. 
• Accessing finance for the installation of solar pumps and power plants can be challenging. Farmers may not have proper documentation or collateral to secure loans.
• Regular maintenance of solar pumps is essential for their efficient functioning. However, in remote rural areas, access to maintenance services and spare parts may be limited. 
• In areas with insufficient sunlight, the power generation capacity of solar pumps may be affected. This can pose challenges to farmers relying on these systems for irrigation and electricity.
• In some regions, connecting solar power plants and pumps to the grid may be challenging. This may be due to inadequate infrastructure or unreliable electricity grid connections. 
• Effective implementation of the PM KUSUM scheme requires coordination among many stakeholders. 
• Identifying suitable land for solar power plants can be a hurdle in implementing the scheme.

Also, read the article on the Atal Solar Pump Yojana!

Way Forward

• The key to the PM Kusum Scheme depends on the consensus between the centre and the states. Major reforms in India’s power space depend on consensus between the Centre, States, and other stakeholders.
• Moreover, farmers will also have to switch to drip irrigation systems apart from switching to solar power generation. This will ultimately lead to energy and water generation, leading to enhanced crop output and higher farmer income.
• The effective implementation of this scheme, along with the enhanced participation of all the stakeholders, will ultimately lead to better pricing of solar energy generation. This scheme will also lead to decreased input costs of solar power plants and enhanced prospects of profitable solar energy generation.

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