Schemes in News: November 2020 Current Affairs Current Affairs Notes | EduRev

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Current Affairs : Schemes in News: November 2020 Current Affairs Current Affairs Notes | EduRev

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83                                                                               www.visionias.in                                                                        ©Vision IAS  
10. SCHEMES IN NEWS 
10.1. PRADHAN MANTRI KISAN URJA SURAKSHA EVAM UTTHAAN 
MAHABHIYAN (PM-KUSUM) SCHEME 
Why in News? 
Ministry of New and Renewable Energy (MNRE) has expanded the scope of PM-KUSUM scheme to enable greater 
solar energy generation in farm sector. 
Objective Features 
To provide financial and water 
security to farmers. Budget 
2020-21 has sought to expand 
the coverage:  
• Scheme to enable farmers 
to set up solar power 
generation capacity on 
their fallow/barren lands 
and to sell it to the grid.  
• 20 lakh farmers to be 
provided for setting up 
stand-alone solar pumps 
• Another 15 lakh farmers 
to be helped to solarise 
their grid-connected 
pump sets 
Central Financial Assistance 
(CFA)/ State Government 
Support: 
• Component A:  
Procurement Based 
Incentive (PBI) @ 40 
paise/kWh or Rs. 6.60 
lakhs/MW/year, 
whichever is less, will be 
provided for the first five 
years by MNRE to 
DISCOMs, for buying the 
power from 
farmers/developers. 
• Component B & C: CFA of 
30% of the benchmark 
cost or the tender cost, 
whichever is lower. State 
Government subsidy 
30%; Remaining 40% by 
the farmer. 
o In North Eastern 
States, Sikkim, J&K, 
Himachal, 
Uttarakhand, 
Lakshadweep and 
A&N Islands, CFA of 
50%, State 
Government subsidy 
30%, Remaining 20% 
by the farmer.  
• It aims to add a solar capacity of 25,750 MW by 2022. The proposed scheme consists 
of three components: 
o Component-A: 10,000 MW of Decentralized Ground Mounted Grid Connected 
Renewable Power Plants. 
? Renewable power plants of capacity 500 KW to 2 MW will be setup by 
individual farmers/ cooperatives/panchayats /farmer producer 
organisations (FPO) on their barren or cultivable lands (now on 
pastureland and marshy land of farmers also) referred as Renewable Power 
Generator (RPG). 
? To support small farmers, the solar power projects smaller than 500 
kW may be allowed by States based on techno-commercial feasibility. 
? There shall be no penalty to RPG for shortfall in solar power 
generation from minimum prescribed Capacity Utilization Factor 
(CUF). 
? The power generated will be purchased by the DISCOMs at Feed in tariffs 
determined by respective SERC. 
o Component-B: Installation of standalone Solar Powered Agriculture Pumps. 
? Individual farmers will be supported to install standalone solar pumps of 
capacity up to 7.5 Horsepower (HP).  
? For solar pumps to be set up and used by Water User Associations 
(WUA)/Farmer Producer Organisations (FPO)/Primary Agriculture 
Credit Societies (PACS) or for cluster-based irrigation system, the 
Central Financial Assistance (CFA) will be allowed for solar pump 
capacity of higher than 7.5 HP considering upto 5 HP capacity for each 
individual in the group. 
? It will be mandatory to use indigenously manufactured solar panels with 
indigenous solar cells and modules.  
? To remove delay in installation services, ministry has allowed joint 
venture of manufacturer of solar pump/solar panel/solar pump 
controller with integrators. 
? Centre and state to share 30 per cent of pump cost each; farmer to provide 
the remaining 40 per cent (can access bank loan for up to 30 per cent of the 
cost) 
o Component-C: Solarisation of Grid-connected Solar Powered Agriculture Pumps. 
? Individual farmers will be supported to solarise pumps of capacity up to 7.5 
HP.  
? Solar PV capacity up to 2 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.  
? Solarisation of total 4 lakh grid connected pumps are targeted for sanction 
by 2020-21 and 50% of these are to be solarised through feeder level 
solarisation and balance 50% through individual pump solarisation. 
• Discom or power department will be the implementing agency for feeder-level 
solarisation in their respective areas. 
• This feeder-level solarisation would ensure economies of scale and better efficiency. 
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