Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

Centre’s plan may boost farmers’ solar power use


Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

From UPSC perspective, the following things are important:

Prelims level: Particulars of the KUSUM

Mains level: Possible benefits and outcomes of the scheme discussed in the newscard.


Kisan Urja Suraksha evam Utthaan Mahaabhiyan(KUSUM) scheme

  1. The Centre has announced a Rs. 1.4 lakh-crore scheme for promoting decentralised solar power production of up to 28,250 MW to help farmers
  2. The Centre will spend Rs. 48,000 crore on the ten-year scheme
  3. The scheme was announced in the Union Budget 2018-19

Other benefits of the scheme

  1. The scheme would provide extra income to farmers, by giving them an option to sell additional power to the grid through solar power projects set up on their barren lands
  2. It would help in de-dieselising the sector as also the DISCOMS

Possible positive outcomes

  1. The positive outcomes that are expected when the scheme is fully implemented across the country include (1) promotion of decentralised solar power production,
    (2) reduction of transmission losses and
    (3  providing support to the financial health of DISCOMs by reducing the subsidy burden to the agriculture sector
  2. The scheme would also promote energy efficiency and water conservation and provide water security to farmers

Burden of subsidy

  1. The 60% subsidy on the solar pumps provided to farmers will be shared between the Centre and the States while 30% would be provided through bank loans
  2. The balance cost has to be borne by the farmers
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