The PM-Kusum scheme, which was granted administrative consent by the Ministry of New and Renewable Energy (MNRE) in March 2019, was accompanied by guidelines formulated in July 2019. This program, introduced by MNRE, aims to establish solar pumps and other innovative power plants throughout the country as part of the KUSUM Scheme or Pradhan Mantri Kisan Urja Surakshaevam Utthaan Mahabhiyan Yojana, with the goal of boosting farmers’ income in India.

What is the PM KUSUM Scheme? 

The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan Yojana (KUSUM) scheme aims to assist farmers in cultivating their crops by providing subsidies for the installation of solar irrigation pumps. Under this program, farmers are eligible to receive a 60% subsidy for setting up tube wells and pump sets, while the government will provide 30% of the total cost as a loan.

To increase the income of farmers and provide alternative options for irrigation and reduce the dependence on diesel in the agricultural sector, the Government of India launched the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) Yojana. The scheme received administrative approval in March 2019, and guidelines were formulated in July 2019. The Ministry of New and Renewable Energy (MNRE) introduced the program to establish solar pumps and other innovative power plants throughout the country under the PM-Kusum scheme.

The PM-KUSUM scheme, launched by the Government of India, is a significant initiative that aims to provide clean energy to more than 3.5 million farmers by installing solar-powered agriculture pumps and up to 10 GW of distributed solar projects. The scheme aims to establish 30.8 GW of solar capacity by December 31, 2022, and has allocated INR 340.35 billion (US$4.65 billion) in financial assistance. This makes it one of the largest projects of its kind in the world, with the potential to revolutionize the agricultural sector and improve the livelihoods of millions of farmers across the country.


The Pradhan Mantri KUSUM Yojana enables farmers, farmer organizations, panchayats, and cooperative societies to apply for a solar pump. The scheme’s overall cost is divided into three components, and the government provides assistance to farmers in each one. Farmers are eligible to receive a 60 percent subsidy from the government, and they are only required to contribute 10% of the overall project cost. Moreover, farmers can sell the electricity generated by solar panels and earn additional income that can be utilized to start a new business. This provides an opportunity for farmers to have an additional source of income.

Components of PM KUSUM YOJANA 

Component A

Under the PM-KUSUM scheme, individual farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organisations (FPO), and Water User Associations (WUA) are eligible to establish solar energy-based power plants (SEPP) with a capacity ranging from 500 kW to 2 MW. These entities are collectively referred to as Solar Power Generators (SPGs). SPGs can develop the SEPP on their own or through a developer or local DISCOM if they cannot arrange the required equity.

DISCOMs will publish sub-station wise surplus capacity that can be connected to the grid and will invite interested parties to apply for setting up solar energy plants.

Component B

The PM-KUSUM scheme enables individual farmers in off-grid areas to install standalone solar agriculture pumps with a capacity of up to 7.5 HP. The government provides a capital subsidy (CFA) of 30% of the benchmark cost or tender cost, whichever is lower. Additionally, the state government provides a subsidy of at least 30%, and the farmer is responsible for the remaining cost, which can be financed through bank loans.

In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and A&N Islands, a higher CFA of 50% of the benchmark cost or tender cost, whichever is lower, will be provided. The state government provides a minimum subsidy of 30%, and the remaining 20% will be borne by the farmer.

Component C

The aim of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme is to replace 1 million conventional agriculture pumps with solar-powered ones, while also providing assistance to farmers to solarize their existing grid-connected pumps. The excess solar power generated by these pumps will be sold to DISCOMs at a predetermined price. This solar energy will then be utilized for agricultural irrigation purposes, reducing farmers’ dependence on conventional sources of energy and lowering their energy bills.

What are the benefits of the KUSUM Scheme?

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme provides several benefits, including:

  1. Reduced carbon emissions: The use of solar power in agriculture reduces the carbon footprint of the farming industry, leading to a cleaner and healthier environment.
  2. Lower energy costs: Farmers can significantly lower their energy costs by using solar-powered pumps instead of diesel-powered ones.
  3. Increased income: By selling surplus solar power to DISCOMs, farmers can earn additional income, leading to an increase in their overall earnings.
  4. Improved agricultural productivity: With reliable and sustainable power supply, farmers can irrigate their fields more efficiently, leading to improved agricultural productivity.
  5. Reduced dependence on non-renewable sources of energy: The use of solar energy in agriculture reduces the dependence on non-renewable sources of energy, leading to a more sustainable and self-sufficient farming industry.
  6. Increased access to electricity: The scheme provides electricity to farmers who do not have access to the power grid, improving their quality of life and standard of living.
  7. Employment opportunities: The installation and maintenance of solar-powered pumps and power plants create employment opportunities for skilled and unskilled workers in the renewable energy sector.

Key Benefits of KUSUM Yojana

  1. By providing a reliable and stable source of income, the PM KUSUM scheme benefits farmers without exposing them to any risks.
  2. The scheme helps to prevent overexploitation of groundwater resources by enabling farmers to use solar power for their irrigation needs.
  3. The availability of electricity round the clock is crucial for farmers in running their irrigation pumps and carrying out other farm-related activities, and the PM KUSUM scheme guarantees that.
  4. The implementation of the PM KUSUM scheme can contribute to reducing the carbon footprint of agriculture by promoting the use of renewable energy sources, such as solar power.
  5. By reducing farmers’ dependence on government subsidies for farm power, the PM KUSUM scheme can alleviate their financial burden

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Wrapping Up!

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