MNRE Offers Clarifications for Implementation of KUSUM Scheme

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MNRE has issued clarifications sought by a few State Implementing Agencies on certain issues relating to the implementation of the PM-KUSUM Scheme.

The Ministry of New and Renewable Energy (MNRE) in a recent notification has issued clarifications on certain issues relating to the implementation of Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) Scheme. According to the Ministry, the clarifications have been sought by a few State Implementing Agencies.

The Ministry has made the following clarifications:

1. For Component-B and Component-C, the state share of subsidy shall be a minimum 30 percent of the applicable MNRE benchmark cost or cost discovered through tender, whichever is lower. The states are free to provide a higher share of subsidy to reduce the beneficiary farmer contribution, however, the central financial assistance (CFA) would be limited to 30 percent of the applicable MNRE benchmark cost or cost discovered through tender, whichever is lower for pump capacity up to 7.5 HP.
2. The option is available with the farmer to install a Universal Solar Pump Controller (USPC) under Component-B, for which the farmer has to bear the additional cost for USPC. There is no CFA on the additional cost of USPC, however, the states are free to bear the additional cost for USPC fully or partly, to facilitate the farmer to install USPC.
3. Under Component-C, there is no CFA for the replacement of existing less efficient grid-connected agriculture pump with an energy-efficient agriculture pump, however, the states are free to provide additional financial support for the replacement of existing pumps with energy-efficient pumps.

MNRE had first issued the implementation guidelines for the KUSUM Scheme in July 2019 and has since supplemented it it with amendments and clarifications.

In February, Finance Minister Nirmala Sitharaman while presenting the latest budget had announced the expansion of the scheme under which 20 lakh farmers will now be provided with funds to set up standalone solar pumps. While presenting the budget for 2020-21, the minister said that 15 lakh farmers would be provided funds to set up grid-connected 15 lakh solar pumps.