The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is a central government scheme launched in March 2019 by the Ministry of New and Renewable Energy (MNRE). It was created to address the problem of farmers' reliance on costly diesel for irrigation and the use of irregular grid electricity, aiming to secure energy and water while de-dieselizing the agricultural sector.
The scheme operates through three main components. Component-A supports the installation of decentralized, grid-connected solar power plants, typically between 0.5 MW to 2 MW, on barren or fallow land. Component-B focuses on installing standalone solar-powered agricultural pumps to replace existing diesel pumps. Component-C involves the solarisation of existing grid-connected agricultural pumps. Under Components A and C, farmers can earn income by selling surplus electricity to Distribution Companies (DISCOMs). For Components B and C, farmers typically receive a 60% subsidy from the Central and State governments, with a 30% loan available, meaning the farmer's initial contribution is often only 10% of the cost.
The scheme is connected to the Reserve Bank of India's (RBI) Priority Sector Lending (PSL) Guidelines and the Agriculture Infrastructure Fund (AIF), which facilitate financing for farmers. Recently, the scheme has seen changes, including the removal of the mandatory state share provision in November 2023 and an increase in the target for Components B and C to 49 lakh in September 2023. While the scheme was extended until March 2026, the completion deadline for eligible projects has been further extended to March 31, 2027. A proposed successor, PM-KUSUM 2.0, is planned to incorporate features like Battery Energy Storage Systems (BESS) and Feeder Level Solarisation (FLS).