Lok Sabha Question No. 186 (UNSTARRED), answered on 2023-07-20
Subject: Power Generation Scheme to Farmers
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Vinayak Bhaurao Raut

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 186

ANSWERED ON 20.07.2023

## PROJECTS UNDER PM-KUSUM

## +186. SHRI OMPRAKASH BHUPALSINH ALIAS PAWAN RAJENIMBALKAR SHRI VINAYAK RAUT

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

- (a) the present status of the affordable and accessible power generation scheme being provided to the farmers in various States of the country including Maharashtra;
- (b) the criteria set by the Government for implementing the said scheme;
- (c) the price fixed for the land to be taken from the farmers on lease under the said scheme;
- (d) whether farmers have shown interest in the said scheme;
- (e) if not, the reasons therefore; and
- (f) the arrangements made thereunder for the farmers who have less area of land?

## ANSWER THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

## (SHRI R.K. SINGH)

(a)  &  (b)  The  Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM) 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 20 lakh standalone off-grid solar water pumps; and (iii) Component 'C': Solarization of 15 lakh existing grid-connected agriculture pumps and through feeder level solarization (FLS).

As on 30.06.2023, a total of 113.08 MW capacity has been installed under Component 'A'  and  around  2.45  lakh  pumps  have  been  reported  installed/  solarized  under Component-B and Component-C combined. The Component wise criteria 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)  to  (f)  The  interest  shown  by  the  farmers  and  State  Government  in  the  scheme  is indicated by sanction of 4716 MW under Component 'A', more than 9.47 lakh pumps sanctioned  under  Component  'B'  and  around  23.27  lakhs  pumps  sanctioned  under Component 'C' for FLS.

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.

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## Annexure-I referred in reply to part (a)&(b) of the Lok Sabha unstarred question no. 186 to be answered on 20.07.2023

## Component wise criteria of PM- KUSUM Scheme

| Components, Targets &Criteria                                                                                                                                                                                                                                                                                                                                                                                                       | Financial Assistance available                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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.                                                                                                                                   | Procurement Based Incentive (PBI) to the DISCOMs @ 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Component B : Installation of 20 Lakh Stand-alone Solar Pumps in off-grid areas. Component C: Solarisation of 15 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. | For Component-B and individual pump solarisation under Component-C: CFA of 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&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. 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. |