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KUSUM Yojana: CCEA approves ‘Kisan Urja Suraksha evam Utthaan Mahabhiyan’ Scheme for farmers’ welfare

The Scheme will have substantial environmental impact in terms of savings of CO2 emissions. All three components of the Scheme will save about 27 million tonnes of CO2 emission per annum.

Feb 20, 2019 16:34 IST
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The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on February 19, 2019 approved the launch of ‘Kisan Urja Suraksha evam Utthaan Mahabhiyan’ (KUSUM Yojana) with the objective of providing financial and water security to farmers.

The Central Government will provide a total financial support of Rs 34,422 crore for the scheme.

Components of KUSUM Yojana

The Kisan Urja Suraksha evam Utthaan Mahabhiyan scheme consists of three components:

  • Component-A: 10,000 MW of Decentralised Ground Mounted Grid Connected Renewable Power Plants.
  • Component-B: Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps.
  • Component-C: Solarisation of 10 Lakh Grid-connected Solar Powered Agriculture Pumps.

With all these three components combined, the scheme aims to add a solar capacity of 25,750 MW by 2022.

The Component-A and Component-C will be implemented on pilot mode.  The Component-A aims for 1000 MW capacity, while, Component-C aims for the one lakh grid connected agriculture pumps. On the other hand, the Component-B will be implemented in full-fledged manner.

Component-A

Under Component A, Renewable power plants of capacity 500 KW to 2 MW will be setup by individual farmers, cooperatives, panchayats or farmer producer organisations (FPO) on their lands.

The power generated will be purchased by the DISCOMs in tariffs determined by respective State Electricity Regulatory Commissions (SERC). The scheme will open a continuous source of income to the rural land owners.

The DISCOMs will be provided with the Performance Based Incentives of Rs. 0.40 per unit for five years.

Component-B

Under Component B, individual farmers will be supported to install standalone solar pumps of capacity up to 7.5 HP. Under the scheme, the Solar PV capacity in kW equal to the pump capacity in Horsepower (HP) is allowed.

Component C

Under Component C, individual farmers will be supported to solarise pumps of capacity up to 7.5 HP. Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme.

The farmer will be able to use the generated energy to meet the irrigation needs and the excess available energy will be sold to DISCOM. This will help to create an avenue for extra income to the farmers.

Funding of Component-B and Component-C

For both Component-B and Component-C, central financial assistance (CFA) of 30 percent of the benchmark cost or the tender cost, whichever is lower, will be provided.

The State Government will give a subsidy of 30 percent; and the remaining 40 percent will be provided by the farmer. Bank finance may be made available for meeting 30 percent of the cost. The remaining 10 percent will be provided by the farmer.

Higher CFA of 50 percent will be provided for North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep and Andaman & Nicobar Islands.

Impact

  • The Scheme will have substantial environmental impact in terms of savings of CO2 emissions. All three components of the Scheme will save about 27 million tonnes of CO2 emission per annum.
  • The Component-B of the Scheme on standalone solar pumps may result in saving of 1.2 billion liters of diesel per annum and associated savings in the foreign exchange due to reduction of import of crude oil.
  • The scheme will have direct employment potential. Besides increasing self-employment, it will generate employment opportunity equivalent to 6.31 lakh job years for skilled and unskilled workers. 

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