Kusum Scheme

In the budget of 2018-19 Ministry of New and Renewable Energy announced a new scheme for farmers of the country, named Pradhan Mantri Kisan Urja Suraksha and Utthaan Mahabhiyan commonly known as the PM-KUSUM scheme. This scheme focuses on the decentralized solar power plant for the production of electricity which will help the farmers. The final approval for this scheme was given on 8th March 2019. 
Under this scheme, individual farmers/groups of farmers/panchayats/cooperatives/Water User Association/Farmer Producer Association can set up small renewable energy-based power plants on their barren or cultivated lands.

Objectives of the Scheme:

• The focus will be on decentralized solar power plants for the production of electricity.
• To give farmers an alternate source of income as farmers can sell the additional electricity that has been produced by the solar panels.
• To help India achieve its goal of generating 40% of total electricity generated by renewable power by 2030.

Components of the Scheme:

Component-A:

Under this component, decentralized Grid-Connected Renewable Energy Power Plants of the capacity of 10,000MW is to be made, and for this goal, small renewable energy power plants of capacity 500KW-2MW will be set up by individual farmers/group of farmers/panchayats/cooperatives/Water User Association/Farmer Producer Association in their barren lands. They can sell the generated power to local DISCOM at a pre-determined rate. To reduce the loss of power while transmission and the cost of transmission, plants will be set up within a 5KM radius of sub-stations.

Component-B: 

Under this component, standalone solar pumps of capacity up to 7.5HP will be installed in place of diesel-powered pumps in areas where the grid power supply is not available. The government will help in the installation of 17.5 lakhs such pumps.

Component-C: 

Under this component existing grid-connected water pumps will be converted to solar pumps and government will help farmers in doing so. The government will help in converting 10 lakhs of existing grid-connected pumps to solar pumps. Farmers can use the electricity for their irrigation purposes and then sell the surplus power to local DISCOMs at pre-determined rates.

Government Support:

• Component-A: Government will give funds to DISCOMs for the first five years for buying electricity from producers. It will give 40 paise/kWh or Rs. 6.60 lakhs/MW/year, whichever is less.
• Component-B & C: Central and State governments will fund 30% of the cost and the rest 40% will be paid by the owner, but in J&K, Himachal, Uttarakhand, Sikkim, North Eastern States, Andaman & Nicobar, and Lakshadweep Central government will fund 50% of the cost, the state government will give 30% and rest 20% will be paid by owner.

Advantages of the Scheme:

• The financial condition of DISCOMs in our country is very bad and one of the main reasons behind this is the subsidies that farmers get on electricity, this scheme will reduce the burden of subsidies on DISCOMs and it will help in improving their financial condition. 
• It will help the government in fulfilling its goal of generating 40% of total electricity generated by renewable power by 2030.
• Farmers will also get an alternate income source from this scheme and it will also fulfill their electricity needs.
• Apart from all these advantages, this scheme will be also very good for our environment as it will increase the use of renewable energy and thus heals nature.

Challenges of the Scheme:

• The availability of different mechanical equipment needed for this scheme is a very big challenge for the government.
• Another challenge is depleting groundwater level because if groundwater level depletes then we have to increase the power of pumps and for this, we have to install new solar panels which are very expensive.
• In this scheme main focus is on pumps of a capacity of 3 HP or higher but India has a very large number of small farmers and for them, this will not be much beneficial.

Solutions:

• Central and State governments have to work in coordination with each other to make this scheme successful because this deals with a major change in our power sector and if this scheme is implemented successfully then it will be a major milestone in our power sector and rural economy.
• With this scheme government have to encourage farmers to use new techniques of farming to deduce uses of water so that groundwater doesn’t deplete very fastly.
• Government has to focus on the industrial sector also so that the scheme doesn’t face any equipment shortage.

Frequently Asked Questions: 

Q1.What are the objectives of the scheme?
Ans: The objectives of the scheme are:

• To focus on decentralization of solar power plants for the production of electricity.
• To give farmers an alternate source of income as farmers can sell the additional electricity that has been produced by the solar panels.
• To help India achieve its goal of generating 40% of total electricity generated by renewable power by 2030.

Q2. Discuss the components of PM-KUSUM.
Ans: There are three components of this scheme:

• Component-A: Under this component, decentralized Grid-Connected Renewable Energy Power Plants of capacity 10,000MW is to be made, and for this goal small renewable energy power plants of capacity 500KW-2MW will be set up by individual farmers/group of farmers/panchayats/cooperatives/Water User Association/Farmer Producer Association in their barren or cultivated lands.
• Component-B: Under this component standalone solar pumps of capacity up to 7.5HP will be installed in place of diesel-powered pumps in areas where grid power supply is not available. The government will help in the installation of 17.5 lakhs of such pumps.
• Component-C: Under this component existing grid-connected water pumps will be converted to solar pumps and government will help farmers in doing so. The government will help 10 lakhs farmers in converting their existing grid-connected pumps to solar pumps. 

Q3. Discuss the challenges and solutions of this scheme.
Ans: Challenges of the Scheme:

• Availability of different mechanical equipment needed for this scheme is a very big challenge for the government.
• Another challenge is depleting groundwater level because if groundwater level depletes then we have to increase the power of pumps and for this, we have to install new solar panels which are very expensive.
• In this scheme main focus is on pumps of capacity of 3 HP or higher but India has a very large number of small farmers and for them, this will not be much beneficial.

  Solutions to the Challenges:

• Central and State governments have to work in coordination with each other to make this scheme successful because this deals with a major change in our power sector and if this scheme is implemented successfully then it will be a major milestone in our power sector and rural economy.
• With this scheme government have to encourage farmers to use new techniques of farming to deduce uses of water so that groundwater doesn’t deplete very fastly.
• Government has to focus on the industrial sector also so that the scheme doesn’t face any equipment shortage.

Q4. Discuss the Government aid given for this scheme.
Ans: Government supports given for this scheme are:

• For Component-A: Government will give funds to DISCOMs for the first five years for buying electricity from producers, government will give 40 paise/kWh or Rs. 6.60 lakhs/MW/year, whichever is less.\
• For Component-B & C: Central and State governments will fund 30% of the cost and the rest 40% will be paid by the owner, but in J&K, Himachal, Uttarakhand, Sikkim, North Eastern States, Andaman & Nicobar, and Lakshadweep Central government will fund 50% of the cost, the state government will give 30% and rest 20% will be paid by owner.

Q5. What are the advantages of this scheme?
Ans: Advantages of this scheme are:

• Financial condition of DISCOMs in our country is very bad and one of the main reasons behind this is the subsidies that farmers get on electricity, this scheme will reduce the burden of subsidies on DISCOMs and it will help in improving their financial condition.
• It will help the government in fulfilling its goal of generating 40% of total electricity generated by renewable power by 2030.
• Farmers will also get an alternate income source from this scheme and it will also fulfill their electricity needs.
• Apart from all these advantages this scheme will be also very good for our environment as it will increase the use of renewable energy and thus heals nature.

Q6. Which ministry had announced this scheme?
a) Ministry of Agriculture
b) Ministry of Horticulture
c) Ministry of Health
d) Ministry of New and Renewable Energy
Ans: d