PM KUSUM Scheme in Hosur

The KUSUM yojana full form stands for: Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. The name itself reflects the core objectives:

• Urja Suraksha: Energy security for farmers.
• Utthaan: Income enhancement and rural upliftment.

The PM KUSUM Scheme was launched by the Government of India to add 34,800 MW of solar capacity by March 2026. Administered by the Ministry of New and Renewable Energy (MNRE), it aims to:

• Provide affordable solar-powered irrigation.
• Reduce diesel consumption and the electricity subsidy burden.
• Enable farmers to become energy producers, not just consumers.
• Align with the benefits Indian MSMEs get from Union Budget 2026 regarding green energy.

Why PM KUSUM Yojana is Important for Indian Agriculture

Indian agriculture heavily depends on expensive diesel pumps and erratic grid electricity. The pm kusum yojana addresses these challenges by promoting decentralized solar power. By generating surplus power, farmers can sell electricity back to DISCOMs, creating a stable income stream, much like the opportunities found in agri-business grants.

The scheme is divided into three major components, each catering to different needs:

Component A enables farmers and rural institutions to set up small solar power plants (up to 2 MW) and sell electricity to DISCOMs.

Eligibility – Component A:

• Individual farmers and Farmer Producer Organizations (FPOs).
• Cooperatives and Panchayats.
• Water User Associations (WUAs).

Key Benefits:

• Feed-in-Tariff (FiT): Power purchased by DISCOMs at a fixed state-approved tariff.
• Lease Income: Farmers can lease barren land to developers and earn assured annual rent without any capital investment.

Component B focuses on replacing diesel pumps in remote areas with solar-powered pumps.

Subsidy Structure:

• Central Government Subsidy: 30%
• State Government Subsidy: 30%
• Farmer Contribution: Only 10%
• Remaining 30%: Can be funded via a without-security business loan or bank finance.

In North Eastern States, J&K, and Uttarakhand, the central subsidy is increased to 50%.

This component allows farmers to solarise their existing pumps, reducing electricity bills and allowing them to sell excess power.

• Individual Pump Solarisation (IPS): 30% subsidy on the solar PV component.
• Feeder Level Solarisation (FLS): Solar plants supply clean power directly to the agricultural feeder, reducing DISCOM losses.

The pm kusum scheme is aligned with:

• 1
  Sustainable Agriculture: Reducing the carbon footprint of farming.
• 2
  Renewable Energy Adoption: Meeting India's solar targets.
• 3
  MSME Integration: Encouraging small enterprises to manufacture components under the MSME Act.

Many applications face rejection due to incorrect component selection or non-alignment with state guidelines. Consultancies like VyapaarVani assist in:

• MSME growth advisory sessions for rural businesses.
• Optimizing subsidies for Agri-Sure Fund candidates.
• Ensuring compliance with the Startup India certificate norms for tech-led agri-firms.

The PM KUSUM Scheme is more than a subsidy program—it is a structural reform. By combining solar generation, irrigation security, and additional income, it empowers farmers to become stakeholders in India's renewable future.

Whether you want to install a solar pump or lease land for a plant, pm kusum yojana offers a sustainable pathway.