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PM Kusum Yojana (Scheme): Objectives, Components & Benefits

Updated: Feb 3, 2023

PM Kusum Yojana and Benefits

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The Pradhan Mantri Kisan Suraksha Evam Utthan Mahabhiyan, or PM Kusum Yojana (Scheme), was launched by India's Ministry of New and Renewable Energy in 2019. The program was introduced to aid farmers in securing better financial futures. This program will help India reach its target of using up to 40% non-fossil fuel-based electricity by 2030.

Through PM Kusum Yojana, Indian farmers will be able to purchase subsidized solar irrigation pumps, thereby decreasing their reliance on diesel-powered grids. In addition, the Indian government has pledged to install 25,750 Mw of solar power by the end of the year and is likely to put Rs 34,422 crore in agriculture for the profit of small and medium-sized enterprises (SMEs) farmers.

Solar Pump In India

Source: Grain Mart

The objective of the PM Kusum Yojana (Scheme)

These schemes are available for individuals, cooperative societies, panchayats, and farmers' cooperative groups. To make things even better for farmers, the government of India has carefully outlined how these funds will be used. The government will subsidize around 60% of the total price to farmers. Farmers must retain 10%, which is a pittance in comparison.

Source: Engineer Bharat

Components of the PM Kusum scheme

In 2019, the Indian government launched the PM Kusum scheme, which consists of three key elements, as detailed below.

  • Component A:

The first step in the plan includes the construction of decentralized renewable energy plants on defunct agricultural land. Every single plant will generate around 500 KW to 2 Megawatts. Farmers and other qualified people will be able to set up renewable energy grids on unused land with the help of this component. The grids can be placed over the crops if the eligible candidate desires. The crops' yields will be protected because the solar panels won't come into direct contact with them.

  • Component B:

The PM Kusum Yojana component B strives to install around 17.50 lakh solar-powered pumps. Instead of the current diesel pumps, the Indian government will provide 7.5 HP solar-powered pumps to farmers. It’s worth noting that farmers have the option of using higher capacity pumps, but the Indian government will only fund pumps with a capacity of up to 7.5 horsepower.

  • Component C:

Component C aims to solarize 10,00,000 grid-based agricultural pumps as part of this program. If a farmer has a surplus of electricity, it will not be spared, instead, it will be sold to the corresponding DISCOMS at predetermined rates.

How will the PM Kusum scheme be implemented?

The PM Kusum scheme will be implemented by a state nodal agency inside the Ministry of New and Renewable Energy. DISCOMS, farmers, and state nodal agencies will work together to implement the plan and raise awareness about it. Implementation will be different for each of the above-mentioned elements.

Before 2018, components C and A were used in a test environment to understand their interactions better. Part B, the setup of solar pumps, is entirely covered by the plan with no testing or investigation.

All states except Northeast, Jammu, and Kashmir, Himachal Pradesh, and Uttarakhand will receive half of the tender price as financial assistance. The remaining 30%, will be provided to farmers as a subsidy, and the rest 20%, must be paid by farmers.

Benefits of the PM Kusum Yojana (Scheme)

The following are some of the PM Kusum scheme features and benefits:

  1. Provides farmers with a safe source of income

  2. Ability to prevent the overexploitation of groundwater

  3. Ensures farmers have access to reliable power

  4. Helps to reduce the carbon footprint in agriculture

  5. Reduces farmers’ financial drain of farm power subsidy

What is the subsidy for solar pumps in India?

Subsidy on the solar water pump is a concept that farmers and the general public are open to learning about. A solar water pump is a new line of water pumps that reduces the expenditure of farmers as it uses sunlight as the main source of fuel. They're especially useful in rural areas of India, where grid power is scarce, and diesel generators are prohibitively expensive. There is a significant up-front cost associated with purchasing a solar pumping system rather than a traditional water pump.

Because of this, small farmers are often unable to situate solar water pumps on their properties. Therefore, the government plans on providing various "smart" solar pump subsidy schemes to help small farmers overcome their financial difficulties and increase their income and yield.

How to register/apply for PM Kusum Yojana?

Visit the official Kusum Yojana website at to register or apply for PM Kusum Yojana. As soon as you've completed the online application, you'll be asked to upload supporting documents, such as an Aadhaar card, property documents, such as the Khasra Khatuni, and a declaration form. PM Kusum Yojana will register you once your application and supporting documents have been approved.

Component A of the PM Kusum Yojana involves an off-grid solar system. What is this system?

The off-grid solar system is a scheme that will be implemented on your arid farmland to generate electricity. An assortment of solar panels and several other components, including inverter batteries, will be installed on your farm to kick off a solar grid. Batteries will be able to store and generate renewable solar energy through the use of these devices. Farmers will use this renewable energy source to poer irrigation and other agricultural tasks. Farms can also generate additional income by selling extra electricity to native DISCOMs for a fixed tariff rate.

Wrapping it up

Farmers stand to gain significantly from the PM Kusum scheme, which is a win-win for them. If they can sell the excess energy generated by their solar grids, they'll have a regular source of income and will be able to make productive use of their unused land. It will also allow them to break ties with diesel pumps, which drive up costs and pollute the environment, harming crops.

The PM Kusum scheme will allow rural areas to sprout their economy. When weighed against the benefits, farmers will save a significant amount of money by registering for this scheme.

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