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PM-KUSUM Yojana

Component C (Feeder Level Solarisation) under PM-KUSUM Yojana

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is a flagship scheme by the Government of India aimed at promoting the use of solar energy in the agricultural sector. Under Component C, commonly known as Feeder Level Solarisation (FLS), the scheme focuses on providing solar power to agricultural feeders.

Key Objectives

Green Energy Generation : Component C aims to generate green energy through the installation of solar power plants at the feeder level

Reduction in Agriculture Costs: By utilizing solar energy, farmers can significantly reduce their electricity bills, making agriculture more sustainable and cost-effective.

Mitigating Environmental Impact: The scheme aims to reduce the environmental impact of agriculture by promoting the use of clean and renewable solar power.

Under Component C of PM-KUSUM:

Solar Power Plants: Solar power plants are installed at the feeder level in rural areas, which feed electricity directly to agricultural consumers

Grid Connectivity: These solar power plants are connected to the grid, ensuring a continuous and reliable power supply to agricultural operations.

Subsidy: Farmers are eligible for subsidies to install solar power plants and associated infrastructure.

Maintenance and Operation: The maintenance and operation of these solar power plants are often carried out by government agencies or appointed organizations.

Benefits for Farmers

Lower Electricity Costs: Farmers benefit from reduced electricity bills as solar power supplements or replaces traditional electricity sources.

Stable Power Supply: Solar power ensures a more stable power supply, reducing interruptions during crucial agricultural operations.

Income Generation: Excess electricity generated can be sold back to the grid, providing an additional source of income for farmers.

Eligibility

Farmers, agricultural cooperatives, and rural agricultural feeder operators are eligible to participate in Component C of PM-KUSUM.

Subsidy

The government provides financial incentives and subsidies to encourage the installation of feeder level solar power plants. The exact subsidy details may vary depending on the location and capacity of the solar plant.

Conclusion

Component C (Feeder Level Solarisation) of PM-KUSUM Yojana plays a crucial role in promoting sustainable and cost-effective agricultural practices in India. By harnessing solar power at the feeder level, farmers can benefit from reduced electricity costs, while also contributing to environmental sustainability. For the latest and specific details on the PM-KUSUM Yojana, it's recommended to visit the official government website or contact relevant government authorities for precise and updated information. Please ensure that you update this information regularly to reflect any changes or developments in the PM-KUSUM Yojana's Component C. Also, consider providing links to official government sources for the most accurate and up-to-date information.

CFA Subsidy in PM-KUSUM Component C (Feeder Level Solarisation)

Central Financial Assistance (CFA)

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Yojana's Component C, which focuses on Feeder Level Solarisation (FLS), offers Central Financial Assistance (CFA) as a significant financial incentive to promote the adoption of solar power in the agricultural sector.

Key Highlights of CFA Subsidy

Financial Support: CFA subsidy provides financial support to eligible beneficiaries, primarily farmers and agricultural feeder operators, to invest in the installation of solar power plants at the feeder level.

Reduction in Investment Costs: The CFA subsidy aims to reduce the initial capital expenditure required for setting up solar power plants, making it more accessible for beneficiaries.

Diverse Solar Projects: The subsidy covers various solar projects, including grid-connected solar power plants, off-grid solar power plants, and decentralized renewable energy solutions.

Subsidy Amount: The exact amount of CFA subsidy can vary based on several factors, including the capacity of the solar plant, location, and other project-specific parameters. Beneficiaries are typically required to meet certain criteria to qualify for the subsidy.

Government Support: The subsidy is provided and managed by the government to encourage the adoption of solar energy in agriculture and reduce the environmental impact of traditional energy sources.

Income Generation: Apart from reducing electricity costs for farmers, these solar projects may generate surplus electricity, which can be fed back into the grid. This surplus power can potentially generate additional income for beneficiaries.

Eligibility for CFA Subsidy

Eligibility criteria for CFA subsidy under Component C of PM-KUSUM Yojana may include:

Beneficiaries must be registered agricultural consumers or feeder operators in rural areas.

Compliance with project specifications and technical requirements.

Meeting the required documentation and approval processes.

How to Avail CFA Subsidy

To avail the CFA subsidy, beneficiaries usually need to follow these steps:

Application: Interested individuals or organizations should submit an application to the designated authorities, providing project details and other required information.

Project Approval: The project is reviewed for compliance with technical and financial criteria, and upon approval, a subsidy is sanctioned.

Project Execution: The solar power plant is installed and made operational, ensuring grid connectivity and adherence to quality standards.

Subsidy Disbursement: The CFA subsidy is disbursed to the beneficiaries based on the agreed terms and conditions.

Monitoring and Maintenance: Beneficiaries are often required to maintain and operate the solar power plant as per the project agreement.

Conclusion

The CFA subsidy plays a vital role in making Component C (Feeder Level Solarisation) of PM-KUSUM Yojana financially viable for farmers and agricultural feeder operators. By providing financial support, the government aims to encourage the adoption of solar energy in the agricultural sector, benefiting both the environment and the economy.

Please note that the specifics of the CFA subsidy, including the exact subsidy amount and eligibility criteria, may change over time. It's essential to refer to the official government sources or contact relevant authorities for the most up-to-date information on the subsidy program.

Solar Project Development Guidelines

This document outlines the guidelines and important points for a 1 MW solar project. It is important to note that these guidelines are for informational purposes only and do not constitute a legally binding contract. Any agreements or obligations must be formalized in a separate legal agreement.

Project Details

Project Scope: Define the scope of the project, including location, capacity, timeline, and specific project objectives.

Government Subsidy: Specify the subsidy details, if applicable, and the eligibility criteria for receiving the subsidy. Refer to the latest government regulations for accurate subsidy information.

Technical Specifications: Provide detailed technical specifications for the solar project, including equipment, design, and performance expectations.

Legal and Financial Aspects

Land Acquisition: Discuss the process of acquiring land for the project, including lease terms, land rights, and any financial arrangements.

Construction: Outline the construction process, timelines, and quality control measures to be implemented.

Operation and Maintenance: Define responsibilities for ongoing operation and maintenance of the solar project, including performance monitoring and equipment upkeep.

Reporting and Monitoring

Project Reporting: Establish reporting requirements to keep all parties informed about project progress, performance, and any issues that may arise.

Monitoring and Auditing: Specify the monitoring and auditing processes to ensure the project adheres to quality standards and regulatory compliance.

Dispute Resolution

Dispute Resolution Mechanisms: Define how any disputes or conflicts will be resolved, including mediation and arbitration procedures.

Conclusion

These guidelines serve as a general framework for a 1 MW solar project. It is crucial to consult with legal professionals and regulatory authorities to formalize agreements and ensure compliance with the latest government subsidy programs and industry standards. The solar developer should carefully evaluate all aspects of the project and ensure the legal and financial arrangements are in accordance with their specific circumstances and regional regulations.

Component C: Feeder Level Solarisation (FLS)

Instead of the individual solar pumps the states can solarize the agriculture feeders. Guidelines were issued on 04.12.2020.

Where agriculture feeders are not separated, loan for feeder separation may be taken from NABARD or PFC/REC. Further, assistance for feeder separation may be availed from the Revamped Distribution Sector Scheme (RDSS) of the Ministry of Power. However, mixed can also be solarised.

Solar plants of capacity that can cater to the requirement of the agriculture load of the selected feeder can be installed through CAPEX/RESCO mode for a project period of 25 years.

CFA of 30% on the cost of installation of solar power plant (up to Rs. 1.05 Cr/MW) will be provided. However, in the North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep, and A&N Islands 50% subsidy is available.

The farmers will get day-time reliable power for irrigation free of cost or at tariff fixed by their respective state.