Government to launch KUSUM scheme to encourage farmers for solar farming

The Union Government has announced Rs.1.4 lakh-crore Kisan Urja Suraksha evam Utthaan Mahaabhiyan (KUSUM) scheme for promoting solar farming i.e. decentralised solar power production of up to 28,250 MW to help farmers. The Union Budget 2018-19 has allocated Rs. 48,000 crore for the scheme for the ten-year period.

Key Facts

KUSUM scheme will start with building 10,000 MW solar plants on barren lands and providing 1.75 million off-grid agricultural solar pumps. It will provide extra income to farmers, by giving them an option to sell additional power to grid through solar power projects set up on their barren lands. It will help in de-dieselising the agriculture sector as India had about 30 million farm pumps that include 10 million pumps running on diesel. The surplus electricity generated by farmers will be bought by state electricity distribution companies (discoms). Thus it will help boost the country’s emerging green economy.

Components of scheme

• Building 10,000 MW solar plants on barren lands
• Providing sops to DISCOMS to purchase the electricity produced,
• Solarising existing pumps of 7250 MW as well as government tube wells with a capacity of 8250 MW
• Distributing 17.5 lakh solar pumps.

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.

Positive outcomes

It will promote decentralised solar power production, reduce of transmission losses of discoms as well as provide support to improve financial health of DISCOMs by reducing subsidy burden to agriculture sector. It will also promote energy efficiency and water conservation and provide water security to farmers.

Month: Current Affairs - February, 2018