PM KUSUM and target beneficiaries in India

A new report from the Centre for Science and Environment (CSE) revealed that the scheme PM KUSUM has achieved only 30 percent of its targets, raising concerns about its ability to meet the 2026 deadline.

About PM KUSUM:

• The Pradhan Mantri Kisan Urja Suraksha Evam UtthaanMahabhiyan (PM-KUSUM) scheme, launched in 2019 with the ambitious goal of solarising agriculture in India.
• The PM-KUSUM scheme is divided into three components:

1. Component A: Installation of mini-grids on barren lands.
2. Component B: Replacement of diesel water pumps with off-grid solar water pumps.
3. Component C: Replacement of electric water pumps with on-grid solar water pumps and installation of mini-grids for agriculture feeder solarisation.

• The PM-KUSUM Scheme was launched in 2019 for de-dieselisation of the farm sector and enhancing the income of farmers.
• It is aimed at ensuring energy security for farmers in India, along with honouring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40% by 2030 as part of Intended Nationally Determined Contributions (INDCs).
• The scheme aims to add Solar capacity of about 34,800 MW by March 2026 with the total Central Financial support of Rs 34,422 crore.
• Nodal Ministry: Ministry of New and Renewable Energy (MNRE)
• Under the Scheme, a central government subsidy upto 30% or 50% of the total cost is given for the installation of standalone solar pumps and also for the solarization of existing grid-connected agricultural pumps.
• Further, farmers can also install grid-connected solar power plants up to 2MW, under the Scheme on their barren/fallow land.
• This scheme is being implemented by the designated departments of the State Government.

Who are the beneficiaries?

• The eligible categoriesfor KUSUM Scheme are:
  • An individual farmer.
  • A group of farmers.
  • FPO or Farmer producer organization.
  • Panchayat.
  • Co-operatives.
  • Water User Associations.

Challenges:

• One of the principal challenges that the scheme has faced in its implementation has been the availability of cheap electricity for farmers. However, this cheap electricity has its flip side – it leads to increases in a state’s subsidy burden. This access to cheap electricity leads to a lack of incentive for farmers to shift from electric water pumps to solar water pumps. 
• Another challenge is the centralization of the implementation model in some states.
• In Punjab, the report notes,the scheme’s implementation is overseen by the Punjab Renewable Energy Development Agency, as opposed to Rajasthan, where each component of the scheme has a different implementing agency.

Recommendations for improvement

To accelerate the scheme's progress and ensure it meets its 2026 targets, the CSE report recommends several measures:

• Decentralisation: Local implementing agencies with on-ground knowledge should manage the scheme to better cater to farmers’ needs.
• Financial viability: Offering farmers the option to pay upfront costs in installments could make the scheme more accessible.
• Increased central assistance: Boosting financial assistance from the Centre, tailored to state-specific needs and fluctuating prices of solar modules, would alleviate the financial burden on farmers.

Conclusion:

The PM-KUSUM scheme holds the potential to reduce carbon emissions by 5.2 million tonnes, making its successful implementation crucial for India's climate action efforts. With targeted recalibrations, the scheme can not only meet its 2026 targets but also play a significant role in promoting sustainable agricultural practices across the country.