KUSUM YOJANA - 2018 For Farmers


Full Form Kisan Urja Surksha Utthan Mahaabhiyan
Date of Launch 1 Feb. ( Union Budget 2018 )
First Announcement Made by Shri. Arun Jaitley on 1st Feb. 2018
Second Announcement made by Power Ministry on 2nd Feb. 2018
Starting Year 2018 – 2019
Supervised by Indian Power Ministry – Headed By R.K. Singh
End Date Year 2021


KUSUM YOJANA  – Solar Agriculture Pumps Subsidy Yojana.

The start of 2018 saw the announcement of several unique schemes, aimed at the betterment of the farmers . One of these programs was the Kisan Urja Surksha Utthan Mahaabhiyan or the KUSUM YOJANA. Under this arrangement, the Central Govt. desires to assist as many farmers as possible to install new and improved solar pumps on their farms. The farmers need not pay a hefty fee for this benefit as it comes with government subsidy.

Objective of the Scheme:

The main aim of this scheme is to prove the farmers with advanced technology to generate power. The solar pumps will not only assist to irrigate the farms but also allow to generate safe energy. Due to the presence of the Energy Power Grid, the Farmers will be able to sell the extra energy directly to the Power Supply Companies. It will provide them with extra income as well. So, this scheme will bring double benefits.

Features of the Scheme:

Kusum Yojana

For the betterment of the Farmers:

The successful operation of this program will be able to help the farmers not only in meeting their power related requirements , but also able to earn some extra money by selling excess power.

Construction of Plants on infertile Land only:

The Govt. has also announced that it will take initiative to construct plants, which will generate solar power. As per the draft, these plants will only be erected on infertile areas, capable of generation a total of 28000 MW Power.

Distribution of solar power pumps :

one of the primary aims of this program is to provide interested farmers with solar pumps. The government states that 17.5 lakh solar powered pumps will be provided  to agricultural labors.

Power Generation on small scale:

Apart from the solar power plants, government will work towards the installation of new solar pumps in farms, which have Diesel pumps. The capacity of this pumps will be 720 MW.

Power generation from tube- wells :

The government will also work toward the installation of unique tube-wells. Each of this pumps will be able to generate power of 8250 MW.

Sale of Excess Power: Kusum Urja

Apart from distribution, the scheme also provides all farmers with thw chance to earn more money by installing the solar pumps. The excess amount of energy that the farmers generate can be sold to the grid.

Duration of the Scheme:

Current estimates state that for the successful completion of this elaborate scheme, the central govt will have to work for at least 10 years.

Subsidy Structure of the Scheme:

As per the draft, each farmer will get huge subsidy on new and improved solar powered pumps. The farmers will have to tolerate only 10% of the total expenditure to acquire an install a solar pumps. The Central Govt. will provide 60% cost while the remaining 30% will be taken care of by bank as credit.

Good for the overall environment:

The increased use of solar power and electricity generation from the solar plants, will lower the level of pollution in the area. Dependence on fossil fuel will go down considerably as well.

Components of the Scheme:

Solar Pumps Distribution:

During the first phase of the program, the power department, in association with other wings of the government will work towards the successful distribution of solar powered pumps.

Construction of Solar Power Factory:

The next component will include the construction of solar power plants, which will have the capacity to produce a significant amount of power.

Setting up tube – wells :

The third component of this scheme deals with the setting up of unique tube – wells, under the watchful eyes of the central government, which will also a certain amount of power.

Modernization of present pumps:

Only production of power is not the aim of the scheme. The final component of this scheme deals with the modernization of pumps, which are in use as of now. Old pumps will be replaced by developed solar pumps.

Budget for the Scheme:Kusum Budget

The scheme will elaborate and will also require a lot of funding for successful implementation. As per the announcement of this scheme, the Finance Minister And The Power Department announced that it will require around Rs. 48,000 crores. The allocation of funds will be done in four separate segments.

Components of Budget Allocation:

During the initial stage that involves the solar pump distribution, the central government will dispatch an amount of Rs. 22,000 crores. During the second phase of this program, Rs. 4,875 crores will be provided by the respective department. The third phase, wherein all ordinary pumps will be converted into solar powered pumps, the central government will have to tolerate an expense of Rs. 15,750 crores. Lastly for the successful completion of the fourth phase, the central government will have to spend Rs. 5,000 crores.