Power Minister R K Singh today announced a Rs 48,000-crore KUSUM scheme to incentivise farmers to run solar farm water pumps and also use their baron land for generating solar power.
"We have another scheme which was announced in the Budget is KUSUM... The proposal has been appraised by different committees like committee of secretaries. Now it has been approved by the EFC (Expenditure Finance Committee) and the Cabinet. It will be launched next fiscal," Singh said.
The minister said that the previous scheme of KUSUM (Kisan Urja Suraksha Utthaan Maha Abhiyaan) was also very popular and states are on board for this also for direct benefit transfer of subsidy to farmers' account.
As much as 30 per cent of the cost of solar pumps was provided by the government in the earlier scheme. The new scheme would be more broad-based like incentives for discoms to buy power from farmers and financial assistance of 60 per cent to buy solar pumps which would be equally shared by the Centre and state.
The Rs 48,000-crore incentives to be provided under the KUSUM scheme will aid total solar power generation capacity of 28,250 MW entailing an investment of Rs 1.4 lakh crore over the next 10 years, Singh, who is also the Minister of New and Renewable Energy (MNRE), told reporters.
These schemes have four components. First is to utilise the Baron land by farmers. The government is expecting 10,000 MW under this.
For this, ground mounted 10,000 MW, no subsidy would be provided to buy equipment. But discoms would be given 50 paise per unit as generation based incentives to buy power from farmers for five years. Subsidy component will be Rs 4,875 crore.
Second component includes installation of 17.5 lakh off grid solar farm pumps. The government will provide Rs 22,000 crore to farmers to but off grid solar pumps.
Third component is grid connected farm pumps would be solarised. That is around 7,250 MW capacity. The subsidy to solarise grid connected water pumps would be Rs 15,750 crore.
Similarly the government departments grid connected water pumps would be solarised. That would be another 2,500 MW. It would take four year to solarise these pumps. The subsidy component for this would be Rs 5000 crore.
The minister said, "The total central financial assistance under scheme would be for a period of 10 years would be Rs 48,000 crore. It would dedieselise the sector and also help the discom."
India has 30 million farm pumps including 10 million diesel based.
This announcement of contours of the scheme came after Finance Minister Arun Jaitley yesterday announced incentives for farmer go for solar energy.
Jaitely had said, "Many farmers are installing solar water pumps to irrigate their fields. Generation of solar electricity is harvesting of Sun by the farmers using their lands. The Government of India will take necessary measures and encourage State Governments to put in place a mechanism that their surplus solar power is purchased by the distribution companies or licencees at reasonably remunerative rates.
State and Centre collectively provide for 60 per cent of cost of solar pumps as subsidy while bank will provided a loan of 30 per cent and remaining 10 per cent would be paid by farmers.
Singh said that under the scheme, farmer would be able to use solar power and sell excess generation which makes it very attractive proposition.
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