Recalibrating PM-KUSUM Scheme

Syllabus: GS2/Government Policy and Intervention; GS3/Energy

Context

• As the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) scheme approaches its target year of 2026, a recalibration is necessary to address challenges and optimize its impact in achieving energy security for farmers, promoting renewable energy, and meeting climate commitments.

About the PM-KUSUM

• It was launched by the Ministry of New and Renewable Energy (MNRE) aimed at enhancing energy security for farmers and promoting the use of renewable energy in the agricultural sector.
• It seeks to achieve multiple objectives, including reducing the dependency on diesel in the farm sector, increasing farmers’ income, and contributing to India’s renewable energy targets.
• The PM-KUSUM scheme aims to enhance farmers’ energy independence and promote renewable energy adoption through three key components.
  • Component A targets the installation of 10,000 MW of decentralized renewable energy plants on barren land, with power sold to DISCOMs at feed-in tariffs. 
  • Component B focuses on installing 17.50 lakh standalone solar agricultural pumps in off-grid areas, offering 30% central assistance, 30% state subsidy, and 40% farmer contribution. 
  • Component C supports the solarization of 10 lakh grid-connected pumps, enabling farmers to use solar energy for irrigation and sell surplus power to DISCOMs.

Key Benefits

• Socio-Economic Benefits: Provides affordable and reliable energy access to marginalized farmers.
  • Reduces dependency on expensive diesel and erratic grid supply.
  • Help in doubling the farmers’ income.
  • Surplus energy sold to DISCOMs generates additional revenue.
  • Cuts operational costs, and enhances profitability.
  • Boosts local employment through installation, maintenance, and operations of solar infrastructure.
• Environmental Benefits:  Reduces greenhouse gas emissions by 32 million tonnes of CO₂ annually.
  • Promotes sustainable agricultural practices by minimizing reliance on fossil fuels.
  • Advances India’s commitment to achieving 500 GW of renewable energy capacity by 2030 under Panchamrit targets.
• Technological Benefits: 
  • Promotes innovation in solar technology and supply chains.
  • Encourages adoption of low-maintenance solar pumps and hybrid systems.

Key Challenges

• Implementation Bottlenecks: Slow Progress like only 30% of targets achieved as of 2024.
  • Centralized implementation has sidelined local agencies with field expertise.
• Affordability and Accessibility: Despite subsidies, high upfront costs deter adoption, especially among small and marginal farmers.
• Availability of Subsidized Electricity: Heavily subsidized electricity for farmers reduces their incentive to adopt solar pumps.
• Heavily subsidized electricity for farmers reduces their incentive to adopt solar pumps.
• Technical and Logistical Issues: Lack of uniformity in pump capacities and poor maintenance infrastructure.
• Integration with DISCOMs: Financially stressed DISCOMs are hesitant to procure surplus solar power from farmers.
• Regional Disparities: States with better infrastructure like Haryana and Rajasthan outperform others like Bihar and Odisha.

Success Stories and Potential

• PM-KUSUM has contributed to the reduction of diesel consumption in the agricultural sector, and provided farmers with a reliable and sustainable source of energy.
  • By promoting the use of solar energy, the PM-KUSUM scheme aligns with India’s commitment to increasing the share of installed capacity of electric power from non-fossil fuel sources to 40% by 2030.
• Beneficiaries like Devki Devi and Sunita Devi, known as ‘Solar Didis’ from Bihar, have benefited from local government programs and the Aga Khan Rural Support Programme (India).
  • Their experiences underscore the potential of solar energy to transform agricultural practices.

Key Recommendations (Need for Recalibration)

• Decentralization: Empowering local agencies to implement the scheme based on regional needs and conditions.
• Incentives for Solar Adoption: Enhancing incentives for farmers to adopt solar pumps by addressing the issue of cheap electricity.
• More Focus on Components A and C: Prioritizing the implementation of Components A and C to ensure balanced progress across all components.
• DISCOM Viability: Introduce policy incentives for DISCOMs to ensure timely procurement of surplus power.
• State-Specific Strategies: Develop state-level plans for equitable distribution and efficient implementation.

Conclusion

• The PM-KUSUM scheme has the potential to drive India’s climate action and promote sustainable agricultural practices. 
• However, to realize this potential, it is crucial to address the implementation challenges and recalibrate the scheme to meet its targets by 2026.

Source: BL