Scheme Overview:
Full Name: Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan
Launch Date: June 2019
Budget Allocation: ₹1,80,000 crores (approximately)
Target: 30.8 million farmers benefited by 2030
Target Generation: 25,750 MW solar capacity
Key Objective:
– Provide affordable solar energy to farmers
– Reduce diesel/electricity costs
– Generate income from land through solar power plants
– Ensure energy security
Component A: Solar Pump Installation
Objective: Replace diesel/electric pumps with solar pumps
Target Beneficiaries:
Support Provided:
Subsidy Structure:
– Central government subsidy: 30-40% of system cost
– State subsidy (if applicable): Up to 20% additional
– Farmer contribution: 40-50% (or zero-interest NABARD loan)
Typical Subsidy Breakdown (2 HP Solar Pump):
System cost: ₹2,50,000
Central subsidy (30%): ₹75,000
State subsidy (20%, if available): ₹50,000
Farmer cost: ₹1,25,000
OR Farmer gets NABARD loan: ₹1,25,000 @ 4% interest (with subsidy)
RESULT: Farmer gets system for ₹0-1,25,000 (vs ₹2,50,000)
Eligibility Criteria:
✓ Must own agricultural land
✓ Land should be in his/her name (or revenue record)
✓ Not already beneficiary of similar schemes
✓ Land classified as irrigable (govt record) ✓ No loan default with banks
✓ No criminal record (usually)
✓ Minimum land: 0.5 hectare (varies by state)
Exceptions (Can Still Apply):
✓ Tenant farmers (with owner permission/documentation)
✓ Farming groups/cooperatives
✓ Women farmers (often priority)
✓ SC/ST farmers (often priority/higher subsidy)
✓ Farmers with small holdings
Pump Capacity & Support:
Eligible Pump Sizes: 1 HP to 10 HP
Subsidy Caps (National):
– Up to 3 HP: Up to ₹1,50,000 subsidy
– 3-5 HP: Up to ₹3,00,000 subsidy
– 5-10 HP: Up to ₹4,00,000 subsidy
Applications & Timeline:
– Application period: Usually year-round (varies by state)
– Approval timeline: 4-8 weeks
– Installation timeline: 6-8 weeks (post approval)
– Total: 3-4 months from application to operation
Component A Application Process:
STEP 1: Registration (Week 1)
– Visit State Portal or District Agriculture Office
– Download application form
– Fill personal & farm details
– Submit with identity documents
STEP 2: Eligibility Verification (Week 2-3)
– Revenue official verifies land ownership
– Agricultural department confirms land classification
– Bank verifies farmer’s financial status
– District officer reviews application
STEP 3: Technical Assessment (Week 3-4)
– Site visit by solar engineer
– Assess water source & borewell depth
– Recommend appropriate pump size
– Prepare technical proposal
STEP 4: Approval & Sanction (Week 4-5)
– District approves application
– Subsidy sanction letter issued
– Allocation of NABARD loan (if applicable)
– Bank letter for financing
STEP 5: Farmer’s Contribution Collection (Week 5-6)
– Farmer deposits own share (if not using loan)
– Or completes NABARD loan documentation
– Payments processed
STEP 6: Installation (Week 6-10)
– Equipment procurement
– Borewell drilling (if needed)
– System installation
– Performance testing
STEP 7: Commissioning & Inspection (Week 10-12)
– Final inspection by district officer
– Performance verification
– Subsidy payment to vendor/implementer
STEP 8: Farmer Receives System (Week 12)
– System operational
– Warranty documentation
– Training provided
Financial Impact Example (Component A):
BEFORE (Diesel Pump):
Annual diesel cost: ₹2,40,000
System life: 10 years
Total 10-year cost: ₹24,00,000
AFTER (Solar Pump with KUSUM Subsidy):
Initial system cost: ₹2,50,000
Farmer’s contribution (after subsidy): ₹75,000
NABARD loan @ 4% over 5 years: Monthly EMI ₹1,600
Annual OpEx (maintenance): ₹5,000
5-Year Cost (Loan period):
EMI: ₹1,600 × 60 months = ₹96,000
OpEx: ₹5,000 × 5 years = ₹25,000
Total: ₹1,21,000
SAVINGS in First 5 Years:
Without solar: ₹12,00,000 (diesel cost)
With solar + loan: ₹1,21,000
NET SAVINGS: ₹10,79,000 in 5 years alone!
After Loan Clearance (Years 6-10):
Annual cost: ₹5,000 only (maintenance)
5-year cost: ₹25,000
Savings in Years 6-10: ₹11,75,000
TOTAL 10-YEAR BENEFIT: ₹22,54,000
Component B: Solar Power Plant Installation
Objective: Enable farmers to become power generators
Target Beneficiaries:
Model 1: Individual Farmer
– Subsidy: 30-40% of system cost
– Farmer contribution: 60-70% (or loan)
– Typical system: 2-10 kW
Model 2: Farmer Group/Cooperative (Recommended)
– Subsidy: 40-50% of system cost
– Community contribution: 25-30%
– Bank financing: 20-30%
– Typical system: 10-100 kW shared
Example: 10 kW Group System
System cost: ₹15,00,000
Central subsidy (40%): ₹6,00,000
Community contribution: ₹3,75,000
Bank loan (20%): ₹3,00,000
Farmer groups pay: ₹2,25,000 (15% average per group)
Annual electricity generation: 15,000 units
Annual revenue (@ ₹5/unit): ₹75,000/year
Per-farmer annual benefit (if 5 farmers): ₹15,000/year Payback: ~6-7 years
Installation Locations:
Application Process:
Similar to Component A with additions:
– Community formation (Gram Sabha approval)
– Community land identification
– Collective application
– Shared benefit distribution documented
– Maintenance responsibility clarified
Revenue Model:
REVENUE OPTIONS:
Option 1: Sell to DISCOMS (Electricity Board)
– Fixed tariff: ₹5-6 per unit (state-dependent)
– 25-year PPA (Power Purchase Agreement)
– Monthly payments from DISCOM
– Most secure, predictable
Option 2: Sell to Individual Consumers (Rare)
– Direct consumer sales
– Higher tariff possible (₹6-8/unit)
– More complex agreements
– Limited scalability
Option 3: Community Self-Consumption
– Community members consume generation
– Reduces community grid bills
– No export revenue
– Simpler management
RECOMMENDED: Option 1 (DISCOM sale, predictable 25-year income)
Component C: Grid Integration & Aggregation
Objective: Support large-scale solar deployment
Target:
Support Provided:
Not Directly Applicable to Individual Farmers
(Component C primarily for institutional/utility-scale)
ESSENTIAL ELIGIBILITY:
– Indian citizen
– Own agricultural land (documented)
– Land in Irrigable area (official classification)
– No existing subsidy for similar scheme
– No criminal record (usually)
– Cooperative registration (if group)
LAND REQUIREMENTS:
– Minimum: 0.5 hectare (varies by state)
– Documented in revenue records under own name
– Or: Tenant with owner’s written permission
– Or: Community land (collective application)
PRIORITY CATEGORIES:
Priority 1: Women farmers (35-40% subsidy)
Priority 2: SC/ST farmers (60-75% subsidy)
Priority 3: Small/marginal farmers
Priority 4: General farmers
FINANCIAL REQUIREMENTS:
– No loan default history
– Capacity to manage NABARD loan (if availing)
– No excessive outstanding dues
MAHARASHTRA:
– Farmer contribution: 0-20% (very low)
– Annual application closing: Usually December
– Processing time: 8-10 weeks
PUNJAB:
– Farmer contribution: 5-10%
– Application year-round (open window)
– Processing: 6-8 weeks
KARNATAKA:
– Subsidy: 40-50% (higher)
– SC/ST category: Up to 90% subsidy
– Processing: 10-12 weeks
UTTAR PRADESH:
– Large-scale implementation
– Processing: 12-16 weeks
– District-wise quotas
RAJASTHAN:
– Desert region priority
– Extended subsidy for remote areas
– Processing: 10-14 weeks
Action: Check your state’s specific details (schemes vary)
NABARD Scheme Integration:
NABARD SPECIAL AGRICULTURE CREDIT SCHEME (SACS):
Loan Features:
– Loan amount: 100% of farmer’s contribution (typically 40-50% of cost)
– Interest rate: 2-4% p.a. (post-subsidy reduction)
– Tenure: 5-7 years typically
– Repayment: Monthly or quarterly EMI
– Collateral: Second charge on system
– Processing: Free (government sponsored)
Example Calculation (2 HP Pump):
System cost: ₹2,50,000
Government subsidy: ₹75,000
Farmer’s cost: ₹1,75,000
NABARD loan: ₹1,75,000 @ 3.5% for 5 years
Monthly EMI: ₹3,300 (approximately)
Farmer Benefit:
– Upfront cash needed: ₹0
– Monthly EMI: ₹3,300
– Annual savings from diesel elimination: ₹20,000
– Net monthly benefit: ₹20,000 ÷ 12 = ₹1,667
– Effective loan interest: NEGATIVE (savings exceed EMI)
RESULT: FARMER MONEY-AHEAD FROM YEAR 1!
Loan Application Process:
STEP 1: Get Approval Letter from District
– PM-KUSUM subsidy sanction needed first
– District issues approval letter
STEP 2: Approach NABARD-Linked Bank
– Scheduled bank offering NABARD SACS
– Common banks: SBI, HDFC, ICICI, IDBI, etc.
– Or cooperative bank (district-level)
STEP 3: Submit Loan Application
– Documents needed:
– PM-KUSUM subsidy letter
– Land ownership papers
– ID & address proof
– Income certificate
– 2-3 passport photos
– Form IV (electricity bill/water receipt for address)
STEP 4: Bank Verification
– Bank verifies KUSUM approval
– Site visit for system specification
– Verification with district officer
STEP 5: Loan Sanction
– Loan approved
– Terms and conditions letter issued
– Moratorium period (if any)
STEP 6: Fund Disbursement
– Bank transfers to vendor/implementer
– Farmer’s share transferred to vendor
– Installation proceeds
STEP 7: Post-Installation Verification
– System commissioned
– Performance certificate
– Final disbursement if applicable
Types of Loans Available:
TERM LOAN (Fixed Amount):
– Fixed loan amount
– Fixed tenure (5-7 years)
– Equal monthly EMI
– Interest calculated upfront
FLEXI LOAN (Flexible):
– Loan limit (up to ₹5-10 lakhs typically)
– Draw as needed
– Interest only on withdrawn amount
– More flexibility, commonly use
OVERDRAFT (For Existing Customers):
– For farmers with existing bank relationships
– Quick processing
– Highest flexibility
RECOMMENDED: Term Loan or NABARD SACS (specifically designed for solar)
STEP 1: Check Eligibility (Online)
Visit: state-specific portal (Maharashtra, Punjab, etc.)
Example: https://mahaurja.mahaonline.gov.in/ (Maharashtra)
Required Information:
– State and district
– Farm details (location, area)
– Current water source
– Interest in solar pumps
Get: Pre-eligibility assessment (instant)
STEP 2: Collect Documentation
Essential Documents:
Identity Proof:
– Aadhar card
– Voter ID
– Driving license
– Any government-issued ID
Address Proof:
– Ration card
– Electricity bill
– Lease agreement (if tenant)
– Panchayat certificate
Agricultural Land Proof:
– Land ownership certificate
– Revenue record extract (Pattra 12)
– Electricity bill (agricultural connection) OR
– Agricultural department land classification
– If tenant: Written permission from owner + ownership proof
Additional Documents:
– Bank account details (for subsidy transfer)
– Mobile number & email
– For women farmers: Gender certificate (if available)
– For SC/ST: Community certificate (if applicable)
– Cooperative membership (if group application)
IMPORTANT: Get certified copies (₹10-20 each) – usually 3 sets needed
STEP 3: Visit District Office / Apply Online
OFFLINE PROCESS (Traditional):
– Visit District Agriculture Office
– Collect printed application form
– Fill in all details accurately
– Submit with documents
– Get receipt & application number
– Timeline: 5-10 days processing to get receipt
ONLINE PROCESS (Digital):
– Visit state portal
– Register with mobile/email
– Fill online form
– Upload scanned documents (PDF format)
– Submit electronically
– Get confirmation email
– Timeline: 2-3 days to online registration RECOMMENDED: Online (faster, trackable, convenient)
STEP 4: Verification Phase (2-4 weeks)
Activities:
– Revenue official: Verifies land ownership
– Agriculture department: Confirms irrigable status
– District officer: Reviews complete application
– May involve 1 site visit (officer to farm)
Your Action:
– Keep mobile active (officials may call)
– Stay available for site visit
– Respond to any queries promptly
– No action needed from farmer usually
STEP 5: Technical Assessment (1 week)
Solar engineer visits farm:
– Inspect current water source (borewell/well/pond)
– Measure borewell depth (if existing)
– Recommend appropriate pump capacity
– Estimate annual water needs
– Assess solar radiation potential
– Provide technical proposal
Your Action:
– Be present during visit
– Share borewell depth information
– Discuss farming needs
– Ask questions about system sizing
STEP 6: Approval & Sanction (1-2 weeks)
District Issues:
– Approval letter (official sanction)
– Subsidy amount confirmed
– Farmer’s contribution amount
– Authorized vendor list
– Loan eligibility confirmation
Your Action:
– Collect sanction letter from district
– Keep copy for records (critical)
– Decide on financing (own funds vs NABARD loan)
– Select vendor from authorized list
STEP 7: Financing Arrangement (1-2 weeks, if using loan)
If Using NABARD Loan:
– Approach designated bank
– Submit loan application + KUSUM letter
– Bank processes (usually fast, 3-5 days)
– Loan approved & sanctioned
– Funds disbursed to vendor
If Self-Financing:
– Deposit own contribution with district/vendor
– No loan needed
– Faster process (1 week)
STEP 8: Installation (4-8 weeks)
Activities:
– Borewell drilling (if needed)
– System installation
– Performance testing
– Quality verification
Your Action:
– Coordinate access to farm
– Facilitate borewell location marking
– Verify quality during installation
– Attend commissioning ceremony (usually)
– Receive training on operation & maintenance
STEP 9: Inspection & Subsidy Payment (1 week)
Final Inspection:
– District officer verifies system installation
– Tests performance against specifications
– Issues completion certificate
Subsidy Payment:
– Government releases subsidy to vendor/farmer
– Can take 2-4 weeks post-inspection
– Vendor receives payment, issues warranty
TOTAL TIMELINE: 12-18 weeks from application to operational system
Case Study 1: Cotton Farmer – Maharashtra
Profile: Farmer with 5 acres, 2 HP diesel pump
Challenge: ₹2.4 lakh annual diesel cost, unreliable water supply
Solution: 2 HP solar pump under PM-KUSUM
Implementation:
– System cost: ₹2.5 lakhs
– Central subsidy: ₹75,000
– State subsidy: ₹50,000
– Farmer paid: ₹75,000 (own savings)
– No loan needed
Results (Year 1):
– Diesel cost eliminated: ₹2,40,000 savings
– Annual maintenance: ₹5,000 only
– Net year 1 benefit: ₹2,35,000
– Water availability: 24/7 (reliable)
– Crop yield increase: 15% (better irrigation)
3-Year Impact:
– Cumulative savings: ₹7,00,000
– Additional income from increased yield: ₹1,50,000
– Total benefit: ₹8,50,000
– Farmer’s life transformed (lower costs, better harvest)
Case Study 2: Small Farmer Group – Uttar Pradesh
Profile: 5 small farmers (0.5-1 acre each), cooperative formation
Challenge: Individual pump subsidy insufficient, wanted collective benefit
Solution: 10 kW community solar plant under PM-KUSUM Component B
Implementation:
– System cost: ₹15 lakhs
– Central subsidy: ₹6 lakhs
– Bank loan (NABARD): ₹3 lakhs
– Community contribution: ₹6 lakhs (₹1.2 lakh per farmer = manageable)
Operation Model:
– System generates 20,000 units/year
– Sells to DISCOM @ ₹5/unit = ₹1,00,000/year
– Annual maintenance: ₹10,000
– Net annual income: ₹90,000
– Per farmer annual income: ₹18,000
Financial Impact:
– Farmer contribution payback: 8 years (highly attractive)
– Post-payback: ₹18,000/year forever (recurring income)
Additional Benefits:
– Community strengthened through cooperation
– Collective decision-making model
– Women participation: 40% (empowerment)
– Land not lying fallow (productive use)
Case Study 3: Women Farmer – Rajasthan
Profile: 2-acre farm, widow farmer, no agricultural income
Challenge: No access to credit, wanted agricultural improvement
Solution: 1 HP solar pump under PM-KUSUM (women priority)
Implementation:
– System cost: ₹1.25 lakhs
– Women farmer subsidy (45%): ₹56,250
– Farmer contribution: ₹68,750 (NABARD loan)
– Loan @ 2% interest (women-specific): ₹68,750 over 7 years
Financial Outcome:
– Monthly EMI: ₹850
– Monthly water supply benefit: ₹1,500+
– Net monthly advantage: ₹650
– System fully paid in 7 years, then pure profit
7-Year Cumulative: ₹63,000 savings
Years 8-25: ₹18,000/year additional income
Social Impact:
– Women economic empowerment
– Farm productivity increased 40%
– Family financial security improved
– Grandson can continue farming (legacy preserved)
Challenge 1: Land Documentation Issues
Problem:
– Land not in farmer’s name
– Tenant farming
– Joint ownership
– Old/unclear revenue records
Solution:
– Tenant: Get owner’s written permission + proof
– Joint ownership: Get all owners’ consent (notarized) – Old records: Get updated “Pattar 12” from talathi
– Women landowner: Document ownership clearly
– If still problematic: Farm group application (collective ownership acceptable)
Challenge 2: Borewell Depth Concerns
Problem:
– Very deep borewell (300+ meters)
– Groundwater availability uncertain
– Difficult location (rocky terrain)
Solution:
– Deep borewell: Possible (higher HP pump needed)
– Water table survey: Government can arrange (free)
– Rocky terrain: Specialized drilling available (higher cost)
– If groundwater insufficient: Suggest alternative crop/water source
Action: Consult hydrogeological survey before applying
Challenge 3: Delayed Processing
Problem:
– Application pending for months
– No communication from district
– Confusion on status
Solution:
– Contact district agriculture office directly – Ask for tracking number
– Follow-up in person (often faster)
– Escalate to mandal/block officer if stuck
– Contact state helpline (available for all states)
Prevention:
– Apply early (not last day of window)
– Keep all documents ready
– Respond promptly to official queries
Challenge 4: Financing Rejection
Problem:
– NABARD loan rejected
– Credit score issues
– Existing loan defaults
Solution:
– Self-finance if possible (save first)
– Approach cooperative bank (more lenient)
– Get guarantor (government often assists)
– Defer application 1-2 years (improve credit)
– Ask for phased implementation (smaller system first)
Prevention:
– Clear any loan defaults before applying
– Maintain clean bank relationship
– Regular financial discipline
