PM-KUSUM scheme

Why in news?

• The Union Minister of Power, New and Renewable Energy recently reviewed the progress of the PM-KUSUM scheme and reaffirmed the government’s commitment to accelerating solar pump adoption.

About PM-KUSUM scheme:

• PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme is aimed at ensuring energy security for farmers in India, along with honouring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40% by 2030 as part of Intended Nationally Determined Contributions (INDCs).
• It is implemented by Ministry of New and Renewable Energy (MNRE).

Aim of KUSUM:

• To encourage solar power production to help farmers.
• It would encourage decentralization of solar production by incentivizing farmers to shift to renewable energy.
• It will also help reduce the agricultural power subsidy burden of governments primarily used to operate water pumps.

Four components:

• Grid-connected solar power plants each of capacity up to 2 MW in the rural areas.
• Standalone off-grid solar water pumps to fulfill irrigation needs of farmers not connected to grid.
• Solarization of existing grid-connected agriculture pumps to make farmers independent of grid supply and also enable them to sell surplus solar power generated to DISCOM and get extra income.
• Solarization of tube-wells and lift irrigation projects of Government sector.

Funding:

• Government will provide 60% subsidy on solar pumps to farmers.
• It will be shared between Centre and States while 30% will be provided through bank loans.
• The balance cost will be borne by farmers.

PRACTICE QUESTION:

Consider the following statements regarding PM-KUSUM scheme:

1. The entire cost of the scheme is funded by the central government.

2. The scheme would encourage decentralization of solar production by incentivizing farmers to shift to renewable energy.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer