PM-KUSUM Scheme (Solar Pumps for Farmers)

At a Glance

• Ministry New and Renewable Energy
• Approved 2019
• Type Central Sector Scheme
• Components A, B and C
• Funding pattern for pumps 30 percent Centre, 30 percent State, 40 percent farmer
• Exam link UPSC Prelims, Current Affairs and Government Schemes: Energy and Renewable Energy Schemes

Where Does It Fit?

This topic extends solar power from households, covered in the earlier topic, to farmers. It also ties energy policy to agriculture and groundwater, and it links to the national solar targets. Previous topic: PM Surya Ghar Muft Bijli Yojana (Rooftop Solar). Next topic: National Green Hydrogen Mission.

What Are the Three Components of PM-KUSUM?

How Is the Scheme Funded and Run?

• Funding pattern for pumps: the Central Financial Assistance is 30 percent of the cost, the State gives 30 percent and the farmer pays 40 percent, of which 30 percent can be taken as a bank loan
• Special category States: for the North East, hill States and islands, the Central assistance is 50 percent
• Implementing agencies: State nodal agencies and distribution companies carry out the work, under the Ministry of New and Renewable Energy
• Net metering for Component C: surplus power from solarised grid pumps is bought by the distribution company, which gives farmers a second income
• Eligibility: farmers with agricultural land, cooperatives, panchayats, farmer producer organisations and water user associations can take part
• Pump size: stand-alone pumps of 3 HP, 5 HP, 7.5 HP and higher are supported, with a cap on Central assistance for the size
• Link with feeders: feeder level solarisation reduces the cost of power subsidy for distribution companies, as the power is generated close to use
• Link with other rural energy: the scheme complements efforts for household solar, as in PM Surya Ghar Muft Bijli Yojana (Rooftop Solar)

What Else Should You Remember?

• Full form: Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan, whose letters spell KUSUM
• Objectives: reduce diesel use in farming, cut the subsidy burden on distribution companies, give farmers extra income and raise renewable capacity
• Original time frame: the scheme was approved in 2019 for completion by 31 March 2022. Delays during the Covid pandemic led to an extension to 31 March 2026
• March 2026 revision: as reported, the ministry moved some deadlines in March 2026, with financial closure for Component A and feeder level work extended to 30 September 2026 and commissioning to 31 March 2027, and commissioning for Component B and individual pump solarisation by 30 September 2026
• Successor plan: as reported in April 2026, a proposed PM-KUSUM 2.0 is under consideration, and committed liabilities are to be carried forward. Whether it has been approved should be checked
• Progress: as reported for September 2025, Component B had reached about 71 percent of its target, while Component A and Component C had achieved far less, so progress is uneven
• Why Component A lags: small plants need finance, land and grid connection, and distribution companies were slow to sign power purchase agreements
• Groundwater concern: free daytime power from solar pumps may encourage overuse of groundwater, a risk in Punjab, Haryana, Rajasthan and Gujarat
• Solar water pumps and micro-irrigation: experts suggest linking pumps with drip irrigation and buying back surplus power to save water
• Farm power subsidy: State governments give power at free or low rates to farmers, and feeder level solar can bring down this subsidy bill
• Constitutional link: electricity is on the Concurrent List, which is why States share costs and administer many parts of the scheme
• Related climate goal: the scheme supports the national goal of 500 GW non-fossil capacity, as in National Solar Mission (Jawaharlal Nehru National Solar Mission)

Why Does It Matter for the Exam?

1. Full form: Kisan Urja Suraksha evam Utthaan Mahabhiyan
2. Components: the type of each component and the target such as 10,000 MW and 20 lakh pumps
3. Funding: 30:30:40 pattern and the special case for the North East
4. Ministry and type: Ministry of New and Renewable Energy and Central Sector Scheme
5. Common errors: swapping Component B with Component C, or giving the wrong funding split

As an analytical point, solar pumps cut diesel costs and emissions, but they can worsen groundwater depletion if power is free. The better design pairs solar with metering, water saving irrigation and a buyback of surplus power so that farmers have a reason to save water.

Why Is This Topic Important?

• Components A, B and C targets
• Funding 30:30:40
• Issues Groundwater and slow progress

What Came Next?

The next topic covers the national mission for green hydrogen. Next topic: National Green Hydrogen Mission.

Key People and Terms

• KUSUM Kisan Urja Suraksha evam Utthaan Mahabhiyan
• Stand-alone pump Solar pump not linked to the grid
• Feeder solarisation Solar power for a farm feeder
• CFA Central Financial Assistance
• HP Horse power of a pump
• Net metering Billing on net power use

Exam Corner

Mains Angle

Questions ask whether solar can fix farm power problems. These points give a balanced frame.

• Benefits Diesel savings, farm income, lower power subsidy
• Concerns Groundwater, slow uptake, finance
• Way forward Drip links, buyback, finance access