The government has proposed a Rs 1.44 lakh crore scheme for solarising pumps of all farmers in the Union Budget 2018-2018.
Speaking to reporters a day after the budget, Minister of State (Independent Charge) for Power and Renewable Energy, R K Singh said, “The Kusum Scheme was announced in the Union Budget. To begin with, the scheme provides for 17.5 lakh off grid solar pumps to begin with. Ultimately we propose to solarise every agricultural pump and apart from this, we will be connecting all the grid connected pumps with solar power.”
In his speech, Finance Minister, Arun Jaitley said, “Many farmers are installing solar water pumps to irrigate their fields. Generation of solar electricity is harvesting of Sun by the farmers using their lands. Government of India will take necessary measures and encourage State Governments to put in place a mechanism that their surplus solar power is purchased by the distribution companies or licencees at reasonably remunerative rates.”
Singh said, “On the cost of the panel, the farmer will get assistance in the form of a 30 per cent capital subsidy from the centre, another 30 per cent will come from the state. Another 30 per cent of the cost will be financed and effectively the farmer will have to bear just 10 per cent of the cost.”
The Central Financial Assistance (CFA) for the scheme will be Rs 48,000 crore for 10 years. A similar amount will have to be parked by the states and the financing institutions, he explained. Effectively the scheme envisaged is close to Rs 1.44 lakh crore after the approval from the Cabinet.
“The solar panels which we will give will have twice the capacity of a grid one. So, if the capacity of a grid connected pump is 5 horse power, the solar panel will generate twice the amount. This way the balance power can be sold to the grid,” Singh added.