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PM Kusum Yojana

Pradhan Mantri Kusum Yojana

Last Updated 13th Apr 2021

  • Kusum stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan.
  • PM Kusum yojana initiates improvement in the current irrigation system in agriculture and farming sectors.
  • The scheme has three components, called Component A, Component B and Component C.
  • The Kusum scheme generates financial assistance for installing solar pumps and solarizing existing grid-connected solar pumps.
  • The total cost under the scheme is to be shared by Central Financing Assistance, State Government Support and the applicant at pre-fixed allocations.
  • This scheme generates an additional source of income by allowing the farmers to sell the extra power.
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Kusum Scheme

The PM Kusum scheme is dedicated to the cause of development of agriculture and those associated with the agricultural sector. The Indian Government has introduced an array of schemes and initiatives for agriculture as it is the backbone of Indian economy and among the largest sectors of employment. The latest agricultural development scheme amongst many is the Kusum Yojana that got introduced in 2019 by the Ministry of New and Renewable Energy in India. The scheme accommodates the farmers for installing solar irrigation pumps along with other renewable energy plants. The assistance under the Kusum scheme is provided in the form of subsidy.

Objectives of Kusum Yojana

The objectives of Kusum Yojana are listed as follows:

  • It aims to generate safe sources of energy and sources of irrigation.
  • It aims at providing advanced technology for individuals as well as groups of farmers, panchayats and co-operative societies with solar pumps.
  • It aims to create an additional source of income for farmers by allowing them to sell the extra power to the Government directly.

Components of PM Kusum Scheme

The Kusum scheme comprises three components that work towards the goal of furnishing power sources for irrigation and thus reducing or completely terminating the need for diesel.

    Component A - Setting up 10,000 MW of decentralized renewable energy power plants with grid connection.
  • Under this component, individual farmers, group of farmers, co-operatives, panchayats, water User Associations, farmer Producer Organizations can set up power plants comprising renewable energy with a capacity ranging from 500kW and 2 MV.
  • The power plants are to be set-up on barren land or on cultivable land where crops can be produced below the solar panels.
  • To reduce the high sub-transmission cost and transmission loss, the power plants will be installed within no more than 5 KM radius of the sub-stations.
  • Local DISCOMS can purchase power at a pre-decided rate.
    Component B - Installing 17.50 lakhs standalone solar pumps
  • This component of Kusum yojana will assist individual farmers in installing standalone solar agriculture pumps with a maximum capacity of 7.5 HP.
  • The solar pumps will replace the diesel-based agriculture pumps.
  • The solar pumps will be installed in off-grid areas where grid supply is not accessible.
  • The scheme will allow installation of pumps with a capacity of more than 7.5 HP; however, the financial assistance will be limited to the stated capacity.
    Component C - Solarizing 10 lakh agriculture pumps with grid connection
  • Under this component, Grid-connected agriculture pumps can be replaced by solar pumps for irrigation needs.
  • Individual farmers will be the target beneficiary.
  • The additional power systems can be sold to the DISCOMs at a pre-decided rate.

How to Apply for Kusum Scheme ?

You can apply for the PM Kusum on its official online portal. Here are the steps for making the application.

  • Visit the official online portal of PM Kusum Yojana
  • Once on the home page, log in using the reference number.
  • The application form can be accessed only after logging in.
  • Tap on the apply button placed on the left corner of the home page.
  • The said button will lead to the registration page displaying the application form.
  • Fill in the form with all correct credentials such as the following first name, middle name, last name, mobile number, username and password. The provided information is used to contact you in case of any query or requirement.
  • Click on ‘Submit’ to complete the process.
  • Check the information and tap on submit.
  • Once the application has been submitted, the registration will be confirmed via message.

Central Finance Assistance/State Government Support

The three components mentioned above receive financial assistance from the Central Government and the State Governments in the following percentage.

Component A
  • Ministry of New and Renewable Energy offers Procurement Based Incentive to the DISCOMs at 40 paise per KWh or yearly 6 lakhs per MW (whichever is the lesser amount).
  • The assistance will be offered for the initial five years.
Component B and C
Area Central Finance Assistance State Government Support Applicant’s share
North Easters states, Uttarakhand, Sikkim, Jammu, Kashmir, Lakshadeep, Andaman and Nicobar island 50% 30% 20%
Other states 30% 30% 40%

Implementation of Kusum scheme

Components A and C of the PM Kusum scheme are to be implemented in pilot mode with a primary mission of installing 1 lakh pumps of 1000 MW capacity. Followed by successful completion of the pilot mode, the number of pumps and the power capacity under A and C components will be increased. State Government authorized Nodal agencies will be carrying out the two components based on the demand. On the contrary, to component A and C, component B acts as a sub-programme, and its implementation is to be done in pilot mode.


What is the full form of KUSUM Scheme?

The full form of KUSUM scheme is Kisan Urja Suraksha evam Utthaan Mahabhiyan.

What areas are covered in Kusum Yojana?

The Kusum Yojana covers the dieselized farm sectors and areas with grid connection.

Is there any subsidy in the Kusum scheme?

Yes, the beneficiaries under the Kusum scheme receive subsidy at specific rates in the form of Central Financial Assistance and State Government Support. The Central Financial Assistance ranges from 30% to 50% based on the location of the applicant. The State Government Support is disbursed at 30% irrespective of any location.

What were the extensions related to the Kusum scheme in budget 2020?

As stated in Budget 2020, Kusum Scheme has set a target of covering 15 lakhs farmers and proposal for allocating ₹ 22,000 Cr for the new and renewable energy sector.

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