Key Components of the PM-KUSUM Scheme

Component A: Decentralized Grid-Connected Power Plants

• Establish solar or renewable energy plants ranging from 500 kW to 2 MW.

• Enables farmers to generate and sell surplus solar power to the grid for additional income.

Component B: Standalone Solar Agriculture Pumps

• Installation of solar pumps up to 7.5 HP, replacing traditional diesel pumps.

• Helps reduce fuel costs and lowers environmental impact.

Component C: Solarization of Grid-Connected Pumps

• Integrate solar energy with existing grid-connected pumps.

• Reduces electricity bills and ensures reliable, uninterrupted irrigation power.

Eligibility Criteria

Eligible entities include:

• Individual farmers

• Self Help Groups (SHGs)

• Joint Liability Groups (JLGs)

• Cooperatives

• Panchayats

• Farmer Producer Organizations (FPOs)

• Water User Associations (WUAs)

Financial Assistance under PM-KUSUM

Loan Structure:

• Component A: 70% loan, 30% borrower contribution.

• Components B & C: 30% loan, 10% borrower contribution, and 60% government subsidy.

• Competitive interest rates with flexible repayment terms ranging from 7 to 15 years.

Security & Insurance:

• Loans secured through asset hypothecation, land mortgage, and Power Purchase Agreement (PPA).

• Comprehensive insurance coverage for financed solar assets.