Lok Sabha Question No. 1883 (UNSTARRED), answered on 2023-12-14
Subject: Affordable Electricity Generation Scheme
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Sanjay Haribhau Jadhav

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 1883

ANSWERED ON 14/12/2023

## SOLAR PUMPS

## 1883. SHRI OM PRAKASH BHUPALSINH ALLIAS PAWAN RAJENIMBALKAR SHRI SANJAY JADHAV

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

(a) the current status of the affordable electricity generation scheme for the farmers of different States of the country including Maharashtra;

(b) the parameters fixed by the Government to complete and implement this scheme;

(c) the value determined for the land/lease taken from the farmers under this scheme;

(d) whether the farmer have shown interest in this scheme and if not, the reasons therefore; and

(e) the provision made in this scheme for farmers having small landholding?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER (SHRI R.K. SINGH)

(a) & (b) The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme was launched in March, 2019 and scaled-up in November, 2020, to provide affordable and accessible power to the farmers throughout the country, including the State of Maharashtra. The scheme  is  demand  driven  and  capacities  are  allocated  based  on  demand  received  from  the States/UTs. The scheme has the following targets:

(i)  Component  'A':  10  GW  capacity  through  installation  of  small  solar  power  plants  each  of capacity up to 2 MW on the barren/fallow land of the farmers;

(ii) Component 'B': Installation of 14 lakh standalone off-grid solar water pumps; and

(iii)  Component  'C':  Solarization  of  35  lakh  existing  grid-connected  agriculture  pumps  and through feeder level solarization (FLS).

As on 30.11.2023, a total of 141.33 MW capacity has been installed under Component 'A' and around  2.83  lakh  pumps  have  been  reported  installed/  solarized  under  Component-B  and Component-C  combined.  The  Component  wise  parameters  fixed  for  implementation  of  PM KUSUM scheme are shown in Annexure I .

(c) The PM-KUSUM scheme does not specify price for the land to be taken from the farmers on lease.  However, the scheme guidelines amended on 12.07.2023 allow States to announce land lease rates for Component 'C' of the scheme.

(d) The interest shown by the farmers and State Government in the scheme is indicated by sanction of 4466 MW under Component 'A', more than 10.51 lakh pumps sanctioned under Component 'B' and around 30.45 lakhs pumps sanctioned under Component 'C' for FLS, till 30.11.2023.

(e) The Scheme has several provisions for farmers having small landholdings.

The scheme allows installation of 500 kW to 2 MW of solar power plants on the barren/fallow land  of  the  farmers,  under  Component  'A'.  However,  to  support  small  farmers,  solar  power projects smaller than 500 kW are allowed under Component 'A' based on techno commercial feasibility.

Component 'B' of the PM KUSUM Scheme provides that priority would be given to small and marginal farmers.

Under Component 'C'(FLS), farmers having small landholding, who wish to offer their land, near the substation, on lease may apply on the SPV portal developed by the States/SIA/DISCOM.

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## Other salient features of PM- KUSUM Scheme

| Components, Targets &Criteria                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Financial Assistance available                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| The Scheme is demand driven and open for all farmers of the country for implementation as per guidelines issued for the Scheme ComponentA : Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Solar Power Plants on barren/fallow/pasture/marshy/ cultivable land of farmers. Such plants can be installed by individual farmer, Solar Power Developer, Cooperatives, Panchayats and Farmers Producer Organisations. Component B : Installation of 14 Lakh Stand-alone Solar Pumps in off-grid areas. Component C: Solarisation of 35 Lakh Grid Connected Agriculture Pumps through (i) Individual Pump Solarisation and (ii) Feeder Level Solarisation. The beneficiaries under Component-B and Component-C could be individual farmer, Water User Associations, Primary Agriculture Credit Societies and Communities/Cluster Based Irrigation Systems. | Procurement Based Incentive (PBI)totheDISCOMs@ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is lower, for buying solar/ other renewable power under this scheme. The PBI is given to the DISCOMs for a period of five years from the Commercial Operation Date of the plant. Therefore, the total PBI payable to DISCOMs is Rs. 33 Lakh per MW. For Component-B and individual pump solarisation under Component-C: CFAof 30% of the benchmark cost issued by MNREor the prices of the systems discovered in the tender, whichever is lower is provided. However, in North Eastern States including Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost issued by MNRE or the prices of the systems discovered in the tender, whichever is lower, is provided. In addition, the respective state/UT has to provide at least 30% financial support. Balance cost is to be contributed by beneficiary. Component B and Component C(IPS)ofPMKUSUMschemecan also be implemented without State share of 30%. The Central Financial Assistance will continue to remain 30% and rest 70% will be borne by the farmer. For agriculture feeder solarization, CFA of Rs 1.05 Crore per MW is provided. There is no mandatory requirement of financial support from participating State/UT. The feeder solarisation can be implemented in CAPEX or RESCO mode. |