Current Affairs : Schemes in News: November 2020 Current Affairs Current Affairs Notes | EduRev
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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.
To provide financial and water
security to farmers. Budget
2020-21 has sought to expand
• 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
Central Financial Assistance
(CFA)/ State Government
• Component A:
Incentive (PBI) @ 40
paise/kWh or Rs. 6.60
whichever is less, will be
provided for the first five
years by MNRE to
DISCOMs, for buying the
• Component B & C: CFA of
30% of the benchmark
cost or the tender cost,
whichever is lower. State
30%; Remaining 40% by
o In North Eastern
States, Sikkim, J&K,
A&N Islands, CFA of
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
? 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
? 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
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
? Solar PV capacity up to 2 times of pump capacity in kW is allowed under the
? 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.