Lok Sabha Question No. 4501 (UNSTARRED), answered on 2025-08-20
Subject: Farmers Benefitted under PM-KUSUM
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Thiru Arun Nehru

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 4501

ANSWERED ON 20/08/2025

## FARMERS BENEFITTED UNDER PM-KUSUM

4501. THIRU ARUN NEHRU

## WILL THE MINISTER OF NEW AND RENEWABLE ENERGY BE PLEASED TO STATE:

- (a) whether the Government is implementing the Pradhan Mantri-Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) to solarize agricultural pumps and support farmers and if so, the details of progress achieved so far;
- (b) the number of farmers and agricultural feeders covered under the PM-KUSUM in the country;
- (c) the manner in which the PM-KUSUM reduces dependence on diesel and grid power in rural areas;
- (d) the details of financial and technical assistance provided to farmers for installation under PM-KUSUM; and
- (e) the manner in which PM-KUSUM contributes to farmer income, sustainable agriculture and energy self-reliance?

## ANSWER

## THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER (SHRI SHRIPAD YESSO NAIK)

- (a) & (b) PM-KUSUM Scheme was launched by the Government in March 2019 with the objective of de- dieselizing the farm sector, providing assured daytime solar power and to provide energy security to farmers. The scheme has three Components:
- (i.) Component A: Setting up of 10,000 MW of Decentralized Ground/ Stilt Mounted Grid Connected Solar or other Renewable Energy based Power Plants by the farmers on their land; (ii) Component B: Installation of 14 lakh standalone off-grid solar agriculture pumps; and (iii) Component C: Solarization of 35 lakh existing grid-connected agriculture pumps including Feeder Level Solarization (FLS).

Scheme allows inter-se transfer of quantities between Component B and Component C. As  reported  by  SIAs,  as  on  31.07.2025,  total  of  640.99  MW  has  been  installed  under Component A out of allocated capacity of 10,000 MW and under Component B and C, a total of 15.08 lakh pumps are installed/solarized out of allocated capacity of 49 lakh pumps.

- (c) PM KUSUM Scheme helps de-dieselize the farm sector by allowing installation of standalone solar pumps and solarizing existing grid connected pumps along with the feeder level solarization.
- (d) The details of CFA provided under PM KUSUM are attached at Annexure I .
- (e) PM-KUSUM is motivating farmers to adopt solar energy and enhance their income. The key benefits and positive impact of the scheme are as follows:
- Farmer can install grid connected solar power plant up to 2 MW on their land and sell the surplus power to DISCOMs and earn additional income.
- With the help of feeder level solarization, scheme allows for assured day time solar power to the farmers and relieve the state from the financial burden for providing free/subsidized electricity for agriculture.
- The scheme envisions to save carbon emissions of 40 million tonnes per year.
- The scheme contributes to advancing sustainable development by deploying solar energy for agriculture. By replacing diesel and other unclean fuels for agricultural use, the scheme allows for mitigating carbon emissions in this sector.

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## Annexure-I referred to in reply to part (c) to (3) of Lok Sabha Unstarred Question No. 4501 for 20.08.2025

## CFA under PM-KUSUM Scheme

| Component                                              | Financial Assistance available                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Component A                                            | Procurement Based Incentive (PBI) is provided to the DISCOMs @ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is lower, for five years. There is no CFAunder this Component.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Component B Component C (Individual Pump Solarisation) | ● CFAof 30% of the benchmark cost issued by MNREorthe 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&NIslands, CFAof50% of the benchmark cost issued by MNREor 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) of PM KUSUM scheme can 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. |
| Component C (Feeder Level Solarisation)                | For agriculture feeder solarization, CFA of Rs 1.05 Crore per MW(1.75 Cr. per MWfor NER/ Hilly/ Islands) 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |