Time to recalibrate PM-KUSUM Scheme

Context: The PM KUSUM scheme has achieved significant results, however, in order to achieve its objectives, both the Centre and the State governments have to work in sync, while recalibrating the process of implementation.

What is the PM KUSUM scheme?

PM-KUSUM Scheme
  • PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Scheme was launched by the Ministry of New and Renewable Energy in 2019.
  • It was launched in order to endow installation of off-grid solar pumps in rural areas and reduce dependence on grid, in grid-connected areas.
  • Objectives:
    • To enable farmers to set up solar power generation capacity on their arid lands and to sell it to the grid.
    • To increase the income of farmers by allowing them to sell surplus solar power to the grid.
  • Components:
    • Component A: 10,000 MW of decentralised ground-mounted grid-connected renewable power plants.
    • Component B: Installation of 20 lakh solar-powered agriculture pumps.
    • Component C: Converting 15 lakh agriculture pumps, already connected to the grid, into solar.

Significance of the Scheme:

  • Increase Access to Energy:
    • It incentivises the farmers to sell surplus solar energy to the states, which in turn will augment their income.
    • The scheme is expected to increase access to electricity in rural areas and provide a reliable source of energy for agriculture and other rural activities.
  • Contain Climate Catastrophe:
    • If farmers are able to sell surplus power, they will be incentivised to save power and, in turn, it will mean the reasonable and efficient use of groundwater.
    • Expansion of the irrigation cover by providing decentralised solar-based irrigation and moving away from polluting diesel.
    • When implemented fully, PM-KUSUM will lead to reducing carbon emissions by as much as 32 million tonnes of CO2 per annum.
  • Employment and Empowerment:
    • The scheme creates job opportunities in the installation, maintenance, and operation of solar power projects.
    • It empowers rural communities by giving them control over their own energy generation and distribution.

Challenges in Implementation:

  • Component-wise Progress:
    • Component A: Minimal progress due to lack of bidding guidelines and low feed-in tariffs.
    • Component B: Most successful, with 60% Central financial assistance and decentralised implementation in states like Rajasthan.
    • Component C: Limited traction due to lack of incentives for farmers already receiving cheap electricity.
  • Political Bias:
    • Divergence between Centre-State relations impacts scheme adoption. E.g., Bihar’s non-participation due to earlier political differences.
  • Operational Issues:
    • Inter-state Disparity E.g., Chhattisgarh and Rajasthan together account for half of two lakh solar pumps currently deployed in the country. 
    • Centralised implementation limits effectiveness.
    • Insufficient awareness campaigns and quality concerns for pumps.
    • Dependence on groundwater availability and irrigation challenges.

Way Forward

  • Decentralised Implementation:
    • Leverage local agencies for tailored execution.
    • Target linked financial assistance to reduce Inter-state disparity and address state-specific constraints.
  • Financial Incentives:
    • Increase Central assistance for Components A and C.
    • Introduce farmer-friendly payment options.
  • Policy Reforms:
    • Align agricultural subsidies with solar adoption to ensure farmer participation.
    • Promote dual-use models like Agro-PV (energy and farming integration).
    • Give up One Size Fits-all approach: Small and marginal farmers should be given a higher capital subsidy and long-term loans with interest subsidies.
  • Focus on Efficiency of Pumps: Solarising grid connected pumps must include replacement of the pump with more energy efficient newer age pumps. 
  • Awareness and Capacity Building: Wide-reaching campaigns to educate stakeholders. Training programs for farmers and implementing agencies.
  • Focus on Post-harvest losses: Use solar power for post-harvesting processes to promote local value addition and enhanced income levels.

By addressing implementation challenges, PM KUSUM can contribute significantly to climate action, energy security, and rural development. Its success depends on a holistic approach that integrates policy, technology, and local insights.

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