MNRE has amended implementation Guidelines of PM KUSUM scheme

Ministry of New and Renewable Energy has made amendments in the implementation guidelines of Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) Scheme on November 13, 2020. It is a scheme for farmers which aim to install solar pumps, grid-connected solar and other renewable power plants across the country.

About PM KUSUM Scheme

• The scheme was approved by Cabinet Committee on Economic Affairs (CCEA) on February 19, 2019.
• The scheme aims to add solar and other renewable power plants of capacity of 25,750 MW by the year 2022.
• PM KUSUM consists of 3 components-

Component A –installation of Decentralized Ground Mounted Grid Connected Renewable Power Plants Component B- installation of standalone Solar-Powered Agriculture Pumps

Component C- Solarisation of grid-connected agriculture Pumps.

Amendments in PM KUSUM Scheme

Amendments in Component A-

• Solar plants can now also be installed on Pasturelands and marshy lands owned by farmers.
• Size of solar plant has been reduced for increasing participation of small farmers. Now, solar power projects smaller than 500 kW will be allowed.
• Completion period have been increased from 9 to 12 months.
• There will be no penalty for shortfall in generation.

Amendments in Component B-

• MNRE will keep 33 percent of eligible service charges for national Information, Education and Communication (IEC) activities.
• CFA will be allowed for solar pump capacity of higher than 7.5 HP considering up to 5 HP capacities to be set up and used by Farmer Producer Organisations (FPO)/Water User Associations (WUA)/Primary Agriculture Credit Societies (PACS) or for cluster based irrigation system.
• MNRE has also amended the eligibility of participation in the centralized tender.
• As per amended guidelines, a separate bid price for solar water pumping system with Universal Solar Pump Controller (USPC) will be invited and subsidy will be made available for these pumps as per the benchmark price of solar pumps without USPC.

Amendments in Component C-

• Ministry will use 33 percent of service charges for IEC activities.
• The provision has been made for the release of Service charges to implementing agencies in advance for preparatory activities.

Recently, Indian Renewable Energy Development Agency Ltd. (IREDA) signed an agreement with MNRE for setting up key targets for 2020-21.

Month: Current Affairs - November, 2020