KUSUM scheme


  • Central government has announced Kisan Urja Suraksha evam Utthaan Mahabhiyan – Kusum Scheme for farmers. Subsequently, govt. will provide subsidy on setting up pf solar power plants on their barren land. Accordingly, Kusum Scheme will solarize agricultural pump sets to double the income of farmers by 2022.
  • Farmers can set up solar power projects on their barren land and use the generated energy. Moreover, farmers can also sell the excess energy to DISCOMS through grid setups to generate additional income.
  • Ministry of New and Renewable Energy will start implementing this scheme from the next fiscal year to promote solar farming among farmers.

Kusum Scheme – Components

Kisan Urja Suraksha evam Utthaan Mahabhiyan (Kusum) scheme consists of 4 components which are as follows:-

  • Firstly, govt. will set up 10,000 MW solar power plants on the barren land of farmers.
  • Secondly, govt. will incentivize DISCOMS to purchase additional energy generated. Govt. will provide 50 paise per unit to buy generated energy. This scheme will enable farmers to sell their excess energy to the grid thereby generating extra income. This component will include subsidy of Rs. 4,875 crore.
  • Accordingly, Central govt. will distribute 17.5 lakh solar agri pump sets (pumps) to the farmers. The subsidy component is Rs. 22,000 crore to buy solar grid pumps.
  • Moreover, govt. will solarize the existing agricultural pump sets (farm pumps) having 7250 MW capacity with Rs. 15,750 crore. and various other government tube wells of 8250 MW capacity with subsidy component of Rs. 5000 crore.

This scheme will help in replacing the existing diesel pumps with solar agricultural pumps.

Kusum Scheme – Subsidy for Farmers

Under this scheme, govt. will provide subsidy to set up solar power pants on the unused lands of farmers as follows:-

  1. Central govt. will provide 60% of the total cost as subsidy to farmers.
  2. In addition to this, Banks will provide 30% of the total expenses as bank loans to the farmers.
  3. Henceforth, farmers will just have to bear an upfront cost of 10% to set up solar power projects.

In its Union Budget 2018-19, central govt. has allocated Rs. 1,40,000 crore (1.4 trillion) to generate total energy capacity of 28,250 MW. Moreover, this scheme will solarize agricultural pumps and encouraging the use of barren land. Central govt. will provide subsidy to the farmers directly into their bank account.


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