Saturday, February 1, 2020

Budget 2020-21:Extra income for farmers through Solar Pumps(PM-KUSUM)

During Budget presentation on 1st February 2020,Finance Minister Nirmala Sitharaman announced that government will help 20 lakh farmers across the country to setup Solar Pumps in their barren lands.Farmers can sell the excess energy to grid for earning some extra income.This is a major proposal to promote Agriculture in barren land as well as Solar Energy production in remote areas.This scheme is provided under Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyaan(PM KUSUM) Scheme.The scheme will help farmers living in barren areas to make their farm income sustainable.

As per the guideline published earlier on 22 July 2019,following Components are covered in this Scheme.Detailed guideline(22 July 2019) is available by visiting mnre.gov.in website.Please note that the guideline is old one and changes are there as per new announcement.
  • 10000 MW of decentralised ground mounted grid connected Renewable Power Plants of individual size up to 2 MW.
  • Installation of 17.50 lakh standalone solar powered Agriculture pumps of individual pump capacity up to 7.5 HP
  • Solarisation of 10 lakh Grid Connected Agriculture Pumps of individual capacity up to 7.5 HP


It is expected that farmer has to bear 10% of the total cost.60% cost will be given as Subsidy by Government(Central and state/UT) and 30% will be provided as Loan with low interest rate.There is a difference in percentage of Subsidy based on UT/State.In primary analysis,it is clear that this move will help Government to address multiple issues through a single Scheme.Through this scheme,the "Anna dataa will become Urja dataa also".

One more announcement is that additional 15 Lakh farmers will get support from Government to convert their existing grid-connected Pumps to Solar Pumps.This will definitely boost the farm income as the solar energy is very cheap and farmers will get an opportunity to sell extra Energy with the help of Power Purchase Agreement.

Lots of positive recommendations are given in this budget for farmers.Requesting every farmer to keep in touch with nearby Government agencies such as Krishi Bhavan,KVK,Agriculture universities etc to get more detailed knowledge of these proposals and get benefited. 

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