PM-KUSUM

• 25 Jul 2023

For Prelims: PM-KUSUM, Mahatma Gandhi National Rural Employment Guarantee Act, Agriculture Infrastructure Fund (AIF) , Priority Sector Lending (PSL) Guidelines, Ground water resources

For Mains: Recent Significant Developments in PM KUSUM, Major Challenges Related to PM-KUSUM.

Source: PIB

Why in News?

The Union Minister of New Renewable Energy furnished the current status of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) scheme through a written response in Lok Sabha.

What is PM-KUSUM?

• About:
  • The PM-KUSUM is a flagship scheme initiated by the Indian government in 2019 with the primary objective of transforming the agricultural sector by promoting the adoption of solar energy solutions.
  • It operates on a demand-driven approach. Capacities are allocated based on the demands received from various states and union territories (UTs).
  • Through various components and financial support, PM-KUSUM envisions achieving a significant solar power capacity addition of 30.8 GW by March 31, 2026.
• Objectives of PM-KUSUM:
  • De-dieselisation of the Farm Sector: The scheme aims to reduce the dependence on diesel for irrigation by encouraging the use of solar-powered pumps and other renewable energy sources.
    • It also seeks to increase farmers' income by reducing irrigation costs through the use of solar pumps and enabling them to sell surplus solar power to the grid.
  • Water and Energy Security for Farmers: By providing access to solar pumps and promoting solar-based community irrigation projects, the scheme aims to enhance water and energy security for farmers.
  • Curbing Environmental Pollution: Through the adoption of clean and renewable solar energy, the scheme aims to mitigate environmental pollution caused by conventional energy sources.
• Components:
  • Component-A: Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Solar Power Plants on barren/fallow/pasture/marshy/ cultivable land of farmers.
  • Component-B: Installation of 20 Lakh Stand-alone Solar Pumps in off-grid areas.
  • Component-C: Solarisation of 15 Lakh Grid Connected Agriculture Pumps through: Individual Pump Solarisation and Feeder Level Solarisation.
• Recent Significant Developments:
  • Extension of Scheme Duration: PM-KUSUM has been extended until March 31, 2026, to facilitate wider adoption of solar energy solutions among farmers.
  • State-Level Tendering: State level tendering is allowed for the procurement of standalone solar pumps, making the process more streamlined and efficient.
  • Inclusion in AIF and PSL Guidelines: The solarization of pumps under PM-KUSUM has been included in the Agriculture Infrastructure Fund (AIF) and Priority Sector Lending (PSL) Guidelines of the Reserve Bank of India (RBI), making it more accessible for farmers to access finance.

Note:

• Agriculture Infrastructure Fund (AIF): The AIF is a financing facility launched on July 8, 2020 for creation of post-harvest management infrastructure and community farm assets.
  • Under this scheme, Rs 1 lakh crore is to be disbursed by financial year 2025-26 and the interest subvention and credit guarantee assistance will be given till the year 2032-33.
• Priority Sector Lending (PSL): The RBI mandates banks to lend a certain portion of their funds to specified sectors, like agriculture, Micro, Small and Medium Enterprises (MSMEs), export credit, education, housing, social infrastructure, renewable energy among others.
  • All scheduled commercial banks and foreign banks (with a sizable presence in India) are mandated to set aside 40% of their Adjusted Net Bank Credit (ANDC) for lending to these sectors.

• Major Challenges:
  • Geographical Variability: Different regions in India have varying solar radiation levels, which can impact the efficiency and performance of solar installations.
    • Also, the effectiveness of solar pumps is contingent on sufficient sunlight, which can be challenging during periods of heavy cloud cover or in regions with prolonged monsoons.
  • Land Availability and Aggregation: The availability of suitable land for solar projects and the aggregation of fragmented land parcels pose challenges in setting up large-scale solar installations.
    • Land acquisition and aggregation can be time-consuming and may lead to delays in project execution.
  • Inadequate Grid Infrastructure: In regions where the grid infrastructure is weak or unreliable, integrating solar power into the grid can be challenging.
    • This can limit the benefits of the scheme, especially for farmers looking to sell surplus solar power back to the grid.
  • Lack of Water Regulation: With the adoption of solar pumps, there may be a surge in irrigation demand as farmers find it more accessible and cost-effective to pump water from underground sources.
    • The absence of proper water management practices could exacerbate over-extraction through solar pumps and impact the long-term sustainability of ground water resources.

Way Forward

• Mobile Solar Pumping: Implement mobile solar pump stations that can be moved to different locations based on irrigation needs.
  • This flexibility can enhance water access for farmers in remote or changing agricultural areas.
• Water Regulation and Monitoring: Implement effective water regulation policies and monitoring mechanisms to control groundwater extraction.
  • The government should collaborate with local authorities to establish water extraction limits based on aquifer recharge rates and overall water availability.
• Linking it with MGNREGA: To enhance the impact of PM-KUSUM and promote rural employment, the scheme can be linked with the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
  • MGNREGA can support the installation of micro-irrigation systems, like drip and sprinkler irrigation, to complement the use of solar pumps.
  • This combination can significantly improve water-use efficiency and crop productivity.

UPSC Civil Services Examination Previous Year Question (PYQ)

Mains

Q. India has immense potential of solar energy though there are regional variations in its developments. Elaborate (2020)