Do you know about PM - KUSUM scheme that has been set up to promote the installation of Solar agriculture pumps?
Which are the companies working in the Solar pumps industry and could potential benefit
A small π§΅to learn about the scheme and its implementation
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Which are the companies working in the Solar pumps industry and could potential benefit
A small π§΅to learn about the scheme and its implementation
(1/n)
PM - KUSUM (Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan)
This scheme was launched by the Ministry of New and Renewable Energy (MNRE) for the installation of solar pumps and other renewable power plants across the nation
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This scheme was launched by the Ministry of New and Renewable Energy (MNRE) for the installation of solar pumps and other renewable power plants across the nation
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It was launched in 2019 with 3 components:
Component - A: For setting up 10,000 MW grid connected Renewable Energy power plants (REPP) on barren land
REPP of capacity 500 kW to 2 MW will be setup by individual farmers, group of farmers, cooperatives, panchayats, etc.
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Component - A: For setting up 10,000 MW grid connected Renewable Energy power plants (REPP) on barren land
REPP of capacity 500 kW to 2 MW will be setup by individual farmers, group of farmers, cooperatives, panchayats, etc.
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Component - B: For installation of 17.50 Lakh off-grid solar agriculture pumps
Individual farmers will be supported to install solar agriculture pumps of capacity up to 7.5 HP for replacement of existing diesel agriculture pumps/ irrigation systems in off-grid areas
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Individual farmers will be supported to install solar agriculture pumps of capacity up to 7.5 HP for replacement of existing diesel agriculture pumps/ irrigation systems in off-grid areas
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Component - C: For solarization of 10 Lakh On-Grid
connected agriculture pumps
farmers having grid connected agriculture pumps will be supported to solarize pumps
farmer will be able to use solar power for irrigation and excess power will be sold to DISCOMs
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connected agriculture pumps
farmers having grid connected agriculture pumps will be supported to solarize pumps
farmer will be able to use solar power for irrigation and excess power will be sold to DISCOMs
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Objectives of the scheme:
To increase the income of farmers and provide sources for irrigation, de-dieselize the farm sector, reduce dependency on grid power and additional income by selling surplus electricity back to the grid
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To increase the income of farmers and provide sources for irrigation, de-dieselize the farm sector, reduce dependency on grid power and additional income by selling surplus electricity back to the grid
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For Components B and C, financial assistance from the Centre and the State Governments are as follows:
- Central Financial Assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower
State Government subsidy 30%; Remaining 40% by farmer
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- Central Financial Assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower
State Government subsidy 30%; Remaining 40% by farmer
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- In North Eastern States, Sikkim, J&K, Himachal, Uttarakhand, Lakshadweep and A&N islands, CFA of 50%, State Government subsidy 30%, remaining 20% by farmer
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How does the scheme work?
Step 1 β Farmer submits interest for Solar equipment and contributes 10% to State Nodal Agency
Step 2 β MNRE contributes 30% to State Nodal Agency (MNRE is controlled by Central Govt.)
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Step 1 β Farmer submits interest for Solar equipment and contributes 10% to State Nodal Agency
Step 2 β MNRE contributes 30% to State Nodal Agency (MNRE is controlled by Central Govt.)
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Step 3 β State Govt contributes 30% to 60% (including loan to farmers at subsidized rates, if any) to State Nodal Agency
Step 4 β State Nodal Agency opens tender and issues work order to the bidder
Step 5 β Bidder supplies materials to farmers and completes installation
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Step 4 β State Nodal Agency opens tender and issues work order to the bidder
Step 5 β Bidder supplies materials to farmers and completes installation
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Step 6 β Bidder submits document to the Nodal Agency for the release of the payment against the work completed
Step 7 β Nodal Agency verifies the installation and releases the payment to the Bidder
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Step 7 β Nodal Agency verifies the installation and releases the payment to the Bidder
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Status of KUSUM scheme?
KUSUM Scheme β 1.0:
- Total Size of Order: 1,50,000 Solar Pumps
- Total Executed Qty β 78,940
- Shakti Pumps executed 22,340 pumps (28%) of the total installed pumps
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KUSUM Scheme β 1.0:
- Total Size of Order: 1,50,000 Solar Pumps
- Total Executed Qty β 78,940
- Shakti Pumps executed 22,340 pumps (28%) of the total installed pumps
(12/n)
- Govt will decide for remaining quantity, i.e., whether to carry forward it to KUSUM β 2.0 or scrap the quantity
KUSUM Scheme β 2.0:
- Total Size of Order: 3,17,000 (not final yet, but tentative)
- Shakti pumps expected to execute 1,00,000 pumps order out of the same
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KUSUM Scheme β 2.0:
- Total Size of Order: 3,17,000 (not final yet, but tentative)
- Shakti pumps expected to execute 1,00,000 pumps order out of the same
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- As per various sources, the average cost of a 5 HP solar pump installation is around Rs 2.5 lakh
Key states where the PM-KUSUM scheme is active (refer attached image)
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Key states where the PM-KUSUM scheme is active (refer attached image)
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Key players in the solar pumps industry:
Tata Power, Shakti Pumps Ltd and other MSMEβs firms
Tata Power manufactures solar panels and outsources rest of the components
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Tata Power, Shakti Pumps Ltd and other MSMEβs firms
Tata Power manufactures solar panels and outsources rest of the components
(15/n)
Shakti Pumps outsources solar panels from Adani and other suppliers and manufactures rest of the components such as SS structures, copper motor, VFD, etc., in house
Disclosure: Not a recommendation, holding or coverage on any stock mentioned above
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Disclosure: Not a recommendation, holding or coverage on any stock mentioned above
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