15-Dec-2022: Steps by MNRE to implement PM-KUSUM scheme

The main objectives of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) include de-dieselisation of the farm sector, providing water and energy security to farmers, increasing the income of farmers and curbing environmental pollution. The Scheme has three components targeted to achieve solar power capacity addition of 30.8 GW by 31.3.2026 with total central financial support of Rs. 34422 Cr.

Steps taken by Ministry for proper implementation of the PM-KUSUM Scheme inter-alia include:

• PM-KUSUM Scheme has been extended till 31.03.2026.
• Central Financial Assistance (CFA) available for pump capacity up to 15 HP (increased from 7.5 HP) to the individual farmers in the North-eastern States, UTs of Jammu & Kashmir and Ladakh, States of Uttarakhand and Himachal Pradesh and Island UTs of Andaman & Nicobar and Lakshadweep, and for each farmer in the cluster/ community irrigation projects in high water table areas in all the States/ UTs.
• Meeting with Banks/FIs for availability of low cost financing to farmers.
• State level tender allowed for procurement of standalone solar pumps
• Time period extended for implementation to 24 months from the date of initial sanction.
• Requirement of performance bank guarantees under Component-A and Component-C (Feeder Level Solarization) relaxed.
• Tender conditions have been revised to increase the installer base in order to expedite extending benefit under the Scheme.
• Solarization of pumps under the Scheme included under Agriculture Infrastructure Fund (AIF) to provide subsidized loans to farmers.
• Scheme included under Priority Sector Lending (PSL) Guidelines of the Reserve Bank of India (RBI) to enable ease of accessing finance. Further, a number of banks have issued lending guidelines for the Scheme.
• Specifications & testing procedure of the solar pumps have been revised time to time to promote quality of installations.
• Web-Portals at Central and at State levels have been developed for monitoring of Scheme.
• Creating publicity and awareness including through CPSUs.
• Toll free number provided for ease of getting information on the Scheme.
• Regular monitoring of the progress and issuance of clarifications and amendments to the scheme guidelines based on lessons learnt during implementation and feedback from stakeholders.

13-Dec-2022: Status of Solar and Ultra Mega Solar power projects

Total central financial support of Rs. 34422 Cr is envisaged under the PM-KUSUM Scheme, which has been extended till 31.3.2026. The Scheme is a demand driven scheme and capacities are allocated, under the Scheme based on the demand received from the states/UTs.

Under the Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects, total of 57 solar parks of aggregate capacity 39,285 MW have been sanctioned till 30.11.2022.

So far, solar power projects of 10,027 MW have been commissioned in these parks, while a few Solar Parks have been cancelled due to their slow progress. The challenges faced in this scheme, inter-alia include acquisition of clear land; mismatch in timelines between solar projects and power evacuation infrastructure; environmental issues like the Great Indian Bustard (GIB) issue in Rajasthan and Gujarat; deceleration of pace of implementation to a considerable extent due to COVID pandemic, etc.

8-Dec-2022: Implementation of PM-KUSUM

Under PM-KUSUM Scheme it is targeted to achieve 10000 MW capacity through installation of grid-connected solar power plants each of capacity upto 2 MW under Component A and solarisation of 35 lakh agriculture pumps under Component-B and Component-C. PM-KUSUM is a demand driven scheme and capacities are allocated based on demand received from the states. As on 31.10.2022 an aggregate solar capacity of 73.45 MW has been installed under Component- A of the Scheme against total allocation of 4886 MW capacity and over 1.52 lakh agriculture pumps have been reported solarised against the allocation of 33.5 lakh pumps under the Scheme.

Availability of low-cost financing for farmers and state share of funds is a major challenge in implementation of the PM-KUSUM Scheme. In addition, the pace of implementation was significantly affected due to the COVID-19 pandemic during 2020-21 and 2021-22. Till 31.10.2022, a total of 21499 standalone solar pumps in the State of Maharashtra and 2242 standalone solar pumps in the State of Tamil Nadu have been reported installed under Component- B of PM-KUSUM Scheme. No existing grid connected agriculture pump is reported solarized.

As per PM-KUSUM Scheme, the implementation agencies in the States/ UTs have to provide  priority to the small and marginal farmers while selecting the beneficiaries. Further, separate budgetary allocations are made under the Scheme for the beneficiaries belonging to Scheduled Castes & Scheduled Tribes and also those living in the North-Eastern States. Therefore, benefits under the Scheme are already available to the economically backward groups/areas of the country.

Since the launch of PM-KUSUM Scheme on 8.3.2019 until 31.10.2022, a total of 21499 farmers in the State of Maharashtra and 2242 farmers in the State of Tamil Nadu have been benefitted under the PM-KUSUM Scheme.

Following provisions of the PM-KUSUM Scheme aim to increase country’s solar water pump manufacturing capacity: (i) Target of installation or solarisation of 35 lakh pumps through central financial support under the Scheme provides visibility of demand in the coming years. (ii) Condition of domestic content requirement for participation in Component-B and Component-C. (iii) Direct participation of manufacturers of solar pumps/ solar photovoltaic modules/ solar pump controller either as sole bidder or member of a Joint Venture, in bidding under Component-B and Component-C.

Presently, Ministry of New and Renewable Energy is implementing two major schemes for decentralised solar power production. These include (i) PM-KUSUM scheme targeted to achieve 10000 MW capacity through installation of grid-connected solar power plants each of capacity upto 2 MW under Component A and solarisation of 35 lakh agriculture pumps under Component- B and Component-C; and (ii) Rooftop Solar Programme Phase II targeted to achieve 40 GW rooftop solar capacity in the country. The timeline of both the schemes have been extended till 31.3.2026

21-Jul-2022: Objectives of PM-KUSUM

The objectives of the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) include de-dieselisation of the farm sector, providing water and energy security to farmers, increasing the income of farmers and curbing environmental pollution. To achieve these objectives, following targets have been kept under the Scheme:

Component-A: 10,000 MW of Decentralized Ground Mounted Grid Connected Solar Power Plants.

Component-B: Installation of 20 lakh standalone Solar Powered Agriculture Pumps.

Component-C: Solarisation of 15 Lakh Grid-connected Agriculture Pumps including through Feeder Level Solarisation.

Following provisions of the PM-KUSUM Scheme aim to increase country’s solar water pump manufacturing capacity:

1. Target of installation or solarisation of 35 lakh pumps through central financial support under the Scheme provides visibility of demand in the coming years.
2. Condition of domestic content requirement for participation in Component-B and Component-C.
3. Direct participation of manufacturers of solar pumps/ solar photovoltaic modules/ solar pump controller either as sole bidder or member of a Joint Venture, in bidding under Component-B and Component-C.

To avoid disruption of the groundwater table, particularly in the districts with depleted levels of ground water, installation of new solar pumps is not allowed under the Scheme in the dark zones/ areas notified by Central Ground Water Board (CGWB), which monitors and regulates groundwater development and extraction. Only the existing diesel pumps can be replaced with solar pumps under Component-B and existing electric pumps can be solarized under Component-C in these areas provided they use micro-irrigation techniques to save water. Additionally, to conserve groundwater, the following provisions are included in the PM-KUSUM Scheme:

1. Preference for installation of standalone solar pumps and solarisation of existing agriculture pumps is given to the farmers using micro irrigation systems or covered under micro irrigation schemes or those who opt for micro irrigation systems.
2. The size of the standalone solar pump is to be selected on the basis of the water table in the area, land covered and quantity of water required for irrigation.
3. Farmers have the option to monetize the surplus power generated under individual grid-connected pump solarisation by selling it to the DISCOM. Further, under feeder level solarisation, farmers are incentivised for electricity consumption below the benchmark consumption.

The steps taken/being taken by the Ministry of New and Renewable Energy for decentralised solar power production include the following:

1. Installation of grid-connected solar power plants up to 2 MW capacity under Component A of PM-KUSUM Scheme
2. Installation of standalone solar pumps under Component-B and solarisation of grid-connected agriculture pumps including through feeder level solarisation under Component-C of PM-KUSUM Scheme by providing Central Financial Assistance (CFA).
3. Promotion of rooftop solar under Solar Rooftop Phase II Programme by providing CFA in the residential sector and incentives to DISCOMs.
4. Off-Grid & Decentralised Solar PV Applications Programme implemented during the years 2018-21 provided financial support for the installation of Solar Street Lights, Off-Grid Solar Power Plants and distribution of Solar Study Lamps.

27-May-2022: MNRE issues advisory for the General Public on PM Kusum Scheme

Ministry of New and Renewable Energy (MNRE) is implementing the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme, under which subsidy is provided for setting up of standalone solar pumps and for the solarization of agricultural pumps. Farmers can also install grid-connected solar power plants up to 2 MW. The scheme is being implemented by the designated departments of the state governments and the details of all such designated departments are available on the MNRE website www.mnre.gov.in.

After the launch of the scheme, Ministry has observed that some fraudulent websites have claimed to be the registration portal for the PM-KUSUM scheme. Such unauthorized websites are collecting money and information from the people interested in the Scheme. In order to avoid any loss to the general public, MNRE has issued public notices in the past, advising general public not to deposit any registration fee or share any personal information on such websites. On receipt of complaints, action has also been taken against miscreants and several fake registration portals have been blocked.

In addition to fraudulent websites, WhatsApp and other means are also being used to mislead potential beneficiaries. Ministry has, therefore, strongly advised that people interested in PM-KUSUM Scheme should check the authenticity of the website before providing any personal information or depositing money. Ministry has further advised not to click on any unverified or suspicious link received through WhatsApp/ SMS which claim to be registration portal for the PM-KUSUM scheme.

Information regarding eligibility for participation in the scheme and implementation process is available on MNRE website http://www.mnre.gov.in or PM-KUSUM central portal: https://pmkusum.mnre.gov.in or dial toll-free number 1800-180-3333.

19-Aug-2021: Union Minister for Power and MNRE takes review of implementation of PM-KUSUM and Rooftop Solar Programme Phase-II

The Union Minister for Power and New and Renewable Energy, Shri R.K. Singh has reviewed the progress of implementation of PM-KUSUM and Rooftop Solar Programme Phase-II with States/UTs and discussed the issues in the implementation of these Schemes.

Shri R.K Singh emphasised on the importance of the PM-KUSUM Scheme for the farmers providing them day-time reliable source of power for irrigation activities and also increasing their income. He also stressed upon wide publicity and awareness of the PM-KUSUM Scheme so that every farmer know the provisions and take benefit under the Scheme. He also discussed with senior officers from States/ UTs about the feeder level solarisation component of the PM-KUSUM Scheme, which would help in reducing the electricity subsidy, being given for the agriculture sector, to a large extent and assured that all possible support will be provided to the States/ UTs in implementation of this Scheme.

On the implementation of Rooftop Solar Programme Ph-II, the Minister re-emphasized the need for wide publicity and awareness about the Scheme taking it to each and every household, as installation of rooftop solar will bring down the electricity consumption of the households and save electricity expenditure.

On the development of solar cities, it was informed that total 20 States/ UTs have identified cities to be developed as Solar / Green City, Shri Singh requested other States to also identify at least a city in the State to be developed as Solar City and requested States/ UTs to launch a campaign in these cities for deployment of clean and green energy projects such as rooftop solar, waste to energy plants, solar street lights, electric vehicle, etc.

He stated that the joint efforts of Central and States would help in successful implementation of these Schemes and achieving the renewable energy targets of the country.

These meetings were held region wise, the first meeting for the Northern region was held in the first half of 17.08.2021 and the States/ UTs participated include Jammu & Kashmir, Ladakh, Himachal Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Delhi, Chandigarh, Bihar, Jharkhand and Punjab.

The meeting with Western region was held in the second half of 17.08.2021 and the States participated include Rajasthan, Gujarat, Maharashtra, Goa, Madhya Pradesh and Chhattisgarh.

The third meeting with Eastern and North-Eastern States was held in the second half of 18.08.2021 and Odisha, Assam, Arunachal Pradesh, Meghalaya, Sikkim and Manipur participated in the meeting.

4-Dec-2020: MNRE issues Guidelines for Implementation of Feeder Level Solarisation under Component-C of PM-KUSUM Scheme

Ministry of New and Renewable (MNRE), after consultation with state governments, has decided to issue Guidelines for Implementation of Feeder Level Solarisation under Component-C of PM-KUSUM Scheme. The Cabinet Committee on Economic Affairs had approved PM-KUSUM scheme in its meeting held on 19.2.2019. The Scheme consists of three components. The Component-A includes installation of Decentralized Ground Mounted Grid Connected Renewable Power Plants, Component-B includes installation of standalone Solar Powered Agriculture Pumps and Component-C includes Solarisation of Grid-connected Agriculture Pumps.

Ministry had issued detailed Guidelines for implementation of Component-C of PM-KUSUM Scheme on 8 November 2019. As per provisions of the PM-KUSUM Scheme, the grid connected agriculture pumps can be solarised with central and state subsidy of 30% each and farmer’s contribution of 40%. The solar capacity allowed is upto two times of the pump capacity in kW and surplus power will be purchased by DISCOM. Since this component was to be implemented on pilot mode, flexibility was given to states for using different models like net-metering, replacing pump with BLDC pump or any other innovative model as deemed fit by the states.

Based on discussions held with states it has been decided to also include feeder level solarisation under Component-C of PM-KUSUM Scheme. Accordingly, these guidelines are being issued to provide broad implementation framework for feeder level solarisation.

Implementation Methodology:

The Distribution Company (DISCOM)/Power Department will be the implementing agency for feeder level solarisation in their respective areas. However, state Government may appoint any other expert agency to help DISCOM for tendering and other related activities of installation of solar power plant for feeder level solarisation.

Where agriculture feeders have already been separated the feeders may be solarised under the scheme. This will lead to lower cost both in terms of lower capital cost and cost of power.  Feeders having major load for agriculture may also be considered for solarisation under the Scheme. The requirement of total annual power for an agriculture feeder will be assessed and a solar power plant of capacity that can cater to the requirement of annual power for that agriculture feeder can be installed either through CAPEX mode or RESCO mode, which will supply solar power to that feeder.

For example, a feeder having annual power requirement of say 10 lakh units, the power can be supplied by solar power plant of capacity around 600 kW with CUF of 19%. Higher or lower CUF, depending upon the average solar insolation available in the areas, may be considered for assessing solar power capacity.

Feeder level solar power plant may be installed to cater to the requirement of power for a single feeder or for multiple agriculture feeders emanating from a distribution sub-station (DSS) to feed power at 11 kV or at the higher voltage level side of the DSS depending upon on factors like availability of land, technical feasibility, etc., and there is no cap of the capacity of solar power plant for feeder level solarisation.

The DISCOMs may identify land near DSS, get ownership of land or its lease rights, provide connectivity at DSS and lay sub-transmission line between DSS and solar power plant. For the purpose of calculating CFA, the cost of installation of solar power plant has been estimated as Rs. 3.5 Cr/MW.   Under the Scheme solarisation of pumps of any capacity is allowed, however, in case of pumps of capacity above 7.5 HP, the CFA will be limited to solar capacity for 7.5 HP pumps.

Where agriculture feeders are not separated, loan for feeder separation will be available from NABARD/PFC/REC. Ministry of Power is also in process of finalising a Scheme to provide assistance for feeder separation. The savings on account of electricity subsidy on agriculture and the income from the surplus electricity generated by the solar power plant when it is not being used for irrigation can also be used to pay off the loan taken for feeder separation.

Feeder level solarisation with enhanced capacity of solar plant:

The state may choose to install feeder level solar power plant of capacity higher than capacity required for supplying power to agriculture feeder. The additional solar power generated may be used for supplying nearby rural/urban loads during day time or alternatively stored/banked for supplying power during evening hours for lighting/induction cooking and other household purposes. However, in this case CFA will be limited for solar capacity required for supplying power to the agriculture feeder.

Implementation under CAPEX Model:

For installation of feeder level solar power plant CFA of 30% (50% in case of NE States, hilly states/UTs and Island UTs) will be provided by central Government and balance will be met through loan from NABARD/PFC/REC. Concessional financing will be available for solarisation of agriculture pumps as RBI has already included this component under priority sector lending and MoAFW has included community level solarisation under Agriculture Infrastructure Fund.  The current outlay on subsidy being presently provided for supply of electricity to agriculture pumps by State Government can be used to repay the loan in five to six years after which power will be available free of cost and outflow from State Government’s exchequer on account of electricity subsidy for agriculture will come to an end. On an average power for agriculture will be required only for 150 days in a year, the electricity produced from the solar power plant in the remaining days will possibly provide an additional income to the DISCOM. If this is also used to pay off the loans taken from NABARD/PFC/REC, the loan can be repaid sooner.

Advance CFA up to 40% of the total eligible CFA will be released to DISCOMs on completion of tendering process and signing of work agreement with EPC contractor selected for installation of solar power plant. Balance CFA will be released on successful commissioning of solar power plant and plant starts supplying power to agriculture feeder(s). The process of tendering and signing of work agreement with EPC contractor should normally be completed by implementing agency within six months from the date of issuance of sanction by MNRE.

The DISCOM may carry-out operation and maintenance of the solar power plant. Alternatively, the EPC contractor who install the solar power plant may also be given task for O&M of plant and supply guaranteed solar power for 25 years. Payment for O&M of solar plant can be linked with energy production. In case of failure of solar power plant to supply required solar power for the complete 25 years of project life, the MNRE may direct the DISCOM to refund the CFA amount on prorata basis. An undertaking to this effect will be submitted by DISCOM to MNRE.

Implementation under RESCO Model:

For installation of feeder level solar power plants through RESCO model, the developers will be selected on the basis of lowest tariff offered for supply of required solar power for a period of 25 years. The developer will get CFA @ 30% of the estimated cost of installation of solar power plant i.e. Rs. 1.05 Cr/MW (30% of Rs. 3.5 Cr/MW). The solar power supplied by RESCO developer would much cheaper than present cost of power delivered at distribution sub-station and therefore, DISCOM will save the amount equal to difference between the two. In the RESCO model the burden of electricity subsidy for agriculture will be reduced to the extent of difference mentioned above and not become zero as in case of CAPEX model, where once the loan is repaid, subsidy support from state Government is no longer required.

States may choose to provide upfront subsidy in lieu of electricity subsidy being given to agriculture consumers. This upfront subsidy from state could be in the form of VGF to RESCO developer, in addition to 30% CFA, to supply power to farmers of an agriculture feeder at present subsidised rates or any other rate fixed by state Government. For example, if present subsidised rate for agriculture is Rs. 1.50/kWh, the RESCO developer will be selected on the basis of lowest VGF bidded for supply of solar power at Rs. 1.50/kWh.

CFA up to 100% of the total eligible CFA will be released to the RESCO developer through DISCOM on successful commissioning and declaration of Commercial Operation Date (COD) of solar power plant. The release of CFA to RESCO developer is subject to submission of bank guarantee equivalent to CFA amount. Bank Guarantee will be released in four lots of 25% each on successful operation of plant after 2.5 yrs., 5 yrs., 7.5 yrs and 10 yrs. from CoD. For selection of RESCO developer and PPA, the Guidelines and model PPA issued by MNRE for implementation of Component-A of PM-KUSUM Scheme may be used, with suitable modifications. The maximum timeline allowed for commissioning of solar power plant by RESCO Developer will be nine months from the date of signing of PPA. The process of selection of RESCO Developer and signing of PPA should normally be completed by implementing agency within six months from the date of issuance of sanction by MNRE.

Water saving and enhancing farmers’ income:

The objective of Component-C of PM-KUSUM Scheme is to provide reliable day-time power to farmers, enhancing their income by purchasing surplus solar power and thus incentivising them for saving water. In case of feeder level solarisation, farmers will get daytime reliable solar power for irrigation, but there is no provision of selling surplus solar power. Therefore, farmers can be incentivised for saving water and enhancing their income. The DISCOMs shall assess the average power requirement by farmers of an area depending upon various factors. This power requirement will be treated as their benchmark consumption. The DISCOMs shall incentivise farmers for consuming power less than benchmark consumption. Such saving of power shall be treated as surplus power injected by farmers and they will be paid by DISCOMs against this saved power at pre-determined tariff. This will be an important measure for conserving groundwater level.

Allocation of capacity and Service Charges:

Under Component-C of PM-KUSUM Scheme 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. The Scheme being demand driven the capacity will be allocated to states depending upon demand raised by them. MNRE will request states to send their demand within given timeframe. The states may send their demand for individual pump solarisation or feeder level solarisation or both. The allocation of capacity will be made by Screening Committee headed by Secretary, MNRE. Implementing agency will get service charges as applicable under Scheme Guidelines.

System Specifications and Quality Control:

All components used for installation of solar power plants shall confirm to applicable BIS/MNRE specifications and follow quality control guidelines issued by MNRE. It will be mandatory to use indigenously manufactured solar panels with indigenous solar cells and modules.

Thorough maintenance of selected agriculture feeders is required to maintain feeder availability during sunshine hours. This includes maintenance of DSS, sub-transmission/LT lines lines and distribution transformers, etc., on regular basis in a time bound manner.

Monitoring:

It will be mandatory for DISCOMs to monitor solar power generation and performance of the solar power plant through online system. The online data will be integrated with central monitoring portal which will extract data from the State portals for monitoring of the scheme.

Interpretation of the Guidelines:

In case of any ambiguity in interpretation of any of the provisions of these guidelines, the decision of the Ministry shall be final. The Guidelines would be reviewed by the Ministry from time to time and necessary modifications would be incorporated after getting approval of competent authority.

13-Nov-2020: MNRE expands scope of PM-KUSUM Scheme to enable greater solar energy generation in farm sector

MNRE has amended/clarified implementation Guidelines of Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) Scheme based on the learnings from the implementation of the Scheme during the first year. The Cabinet Committee on Economic Affairs had approved PM-KUSUM scheme in its meeting held on 19.2.2019. The Scheme consists of three components. The Component-A includes installation of Decentralized Ground Mounted Grid Connected Renewable Power Plants, Component-B includes installation of standalone Solar Powered Agriculture Pumps and Component-C includes Solarisation of Grid-connected Agriculture Pumps.

The ministry has issued following amendments/clarifications in the Scheme Implementation Guidelines:

Amendments/clarifications for Component-A

For Component-A, scope has been increased by including pasturelands and marshy lands owned farmers. Size of solar plant has been reduced so that small farmers can participate and completion period increased from nine to twelve months. Further, penalty for shortfall in generation removed for ease of implementation by farmers. The amendments/ clarifications in Component-A are:

1. Besides barren, fallow and agricultural land, solar power plants can also be installed on pastureland and marshy land of farmers.
2. To support small farmers, the solar power projects smaller than 500 kW may be allowed by States based on techno-commercial feasibility.
3. The selected Renewable Power Generator (RPG) shall commission the solar power plant within twelve months from date of issuance of Letter of Award (LoA).
4. There shall be no penalty to RPG for shortfall in solar power generation from minimum prescribed Capacity Utilization Factor (CUF).
   
   Amendments/clarifications for Component-B

As part of amendments/ clarification in Component-B, MNRE will retain 33% of eligible service charges for nation-wide Information, Education and Communication (IEC) activities. The order mentions that the ministry may release 50% of eligible service charges for the sanctioned quantity after placement of LoA for preparatory activities. 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 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.

Eligibility for participation in the centralised tender has also been amended. During last bid, only solar pump and solar panel manufacturers were allowed to participate in the bid considering quality and post installation services for next five years. During implementation it has been observed that these manufacturers lacking workforce in the field and are dependent on local integrators for this purpose, which has caused delay in installation of solar pumps.

To overcome this situation and also ensure quality and post installation services, it is now decided to allow joint venture of manufacturer of solar pump/solar panel/solar pump controller with integrators. The order allows either one or both of the following two categories to participate in the centralised tendering:

1. Manufacturer of solar PV modules or manufacturer of solar pumps or manufacturer of solar pump controllers using indigenous technology.
2. Joint venture of any of manufacturers mentioned at (a) above with system integrators.

The order further says that Quantity equivalent to 10% of total quantity (rounded off to nearest whole number) under the particular category/type of pumps of a cluster will be allocated to L1 bidder and balance will be kept on market mode for all selected bidders including L1 bidder. This assured allocation will bring seriousness and competition in the bid. Further, Option to match L1 price will be initially extended to all bidders falling under L1+15% and in case number of bidders in this range is less than five the same may be further extended to other bidders in the ascending orders of price bid quoted by them till five bidders agreed for L1 matching or all bidders have been given option to match L1 price, whichever is earlier.

The guidelines related to Specifications and testing have also been amended to avoid repetitive testing of same model and faster implementation. Solar pump specifications have been updated by MNRE in July 2019 and same are being used for PM-KUSUM Scheme. So far, it has been mandated that vendor should possess test certificate for each type and category of solar pump issued in the name of vendor. This has resulted in multiple testing of same solar water pumping system, which is not only time consuming and costly but also do not have any value addition.

To overcome this, it has been decided that the test certificate already available for a solar pumping system can be used for other installers provided the user obtains written consent from the owner of test certificate to use the same. Further, in case of any change in the component of already tested solar pumping system the user shall get technical compatibility certificate for the changes component along with the consent from certificate owner.

As part of amended guidelines 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 according to benchmark price of solar pumps without USPC, even if the price discovered for solar pumps without USPC are less than benchmark price.

Standalone solar pumps are used only for 100-150 days in a year and solar energy generated during balance period is not utilised. In order to make effective use of solar energy it was proposed to introduce USPC, which will not only run the water pump but can also run other electric equipment  cold storage, battery charging, flour mill, etc. Installation of USPC will increase the income of farmer, which is the aim of the PM-KUSUM Scheme.

Amendments/clarifications for Component-C

As part of Component-C Ministry will also use 33% of service charges for IEC activities. The provision has been made for advance release of Service charges to implementing agencies for preparatory activities. The Ministry order says, “MNRE may release 50% of eligible service charges for the sanctioned quantity after placement of LoA for preparatory activities.”

Under Component-C, individual farmers having grid connected agriculture pumps are being supported to solarise their pumps. Farmers will be provided solar panels and they will be able to use the generated solar power to meet the irrigation needs and sell the surplus solar power. DISCOMs will buy surplus power from them at the per-determined rate to be decided by the respective State/SERC. Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme. The Scheme Guidelines were silent on CFA applicable for solarisation of large capacity pumps used by Water User Associations and community/cluster based irrigation system. Now it has been clarified by the Ministry that for grid connected pumps used by Water User Associations (WUA)/Farmer Producer Organisations (FPO)/Primary Agriculture Credit Societies (PACS) or for cluster based irrigation system, the CFA will be allowed for solarisation of pump capacity higher than 7.5 HP considering upto 5 HP capacity for each individual in the group.

19-Feb-2019: Cabinet approves launch Kisan Urja Suraksha evam Utthaan Mahabhiyan

The Cabinet Committee on Economic Affairs, chaired by Hon'ble Prime Minister Shri Narendra Modi has approved launch of Kisan Urja Suraksha evam Utthaan Mahabhiyan with the objective of providing financial and water security to farmers.

The proposed scheme consists of three components:

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

All three components combined, the scheme aims to add a solar capacity of 25,750 MW by 2022. The total central financial support provided under the scheme would be Rs. 34,422 crore.

The Component-A and Component-C will be implemented on pilot mode for 1000 MW capacity and one lakh grid connected agriculture pumps respectively and thereafter, will be scale-up on success of pilot run. Component-B will be implemented in full-fledged manner.

Under Component A, 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. The power generated will be purchased by the DISCOMs at Feed in tariffs determined by respective SERC. The scheme will open a stable and continuous source of income to the rural land owners. Performance Based Incentives @ Rs. 0.40 per unit for five years to be provided to DISCOMs.

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

Under Component C of the scheme, 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, and for the States to meet their RPO targets.

For both Component-B and Component-C, central financial assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower, will be provided. The State Government will give a subsidy of 30%; and the remaining 40% will be provided by the farmer. Bank finance may be made available for meeting 30% of the cost. The remaining 10% will be provided by the farmer. Higher CFA of 50% will be provided for North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep and A&N Islands.

The Scheme will have substantial environmental impact in terms of savings of CO2 emissions. All three components of the Scheme combined together are likely to result in saving of about 27 million tonnes of CO2 emission per annum. Further, 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 has direct employment potential. Besides increasing self-employment the proposal is likely to generate employment opportunity equivalent to 6.31 lakh job years for skilled and unskilled workers.

 15-Mar-2018: KUSUM Scheme – harnessing solar power for rural India