Question : Subsidy to Farmers under PM-KUSUM

(a) whether the Government provides ninety per cent subsidy to farmers for installing solar pumps under Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) and yet the targets set by the Government are not being achieved
(b) if so, the reasons for the farmers inability to take advantage of the said scheme;
(c) whether ten per cent of cost is to be borne by the farmer himself and thirty per cent of the cost through the credit card is one of the reasons as the farmer has already exhausted his credit card limit; and
(d) if so, the manner in which the Government is likely to help the farmers in this regard?

THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER
(SHRI R.K. SINGH)
(a) to (d) For installing standalone solar pumps under PM-KUSUM Scheme,( Component-B) Central Financial Assistance (CFA) of 30% of the benchmark cost or the price discovered through tender, whichever is lower, is provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the price discovered through tender, whichever is lower, of the stand-alone solar pump is provided.

In addition, at least 30% of the benchmark cost or the price discovered through tender, of the solar pump is provided by the State Government. Therefore, only balance cost of the pump is borne by the farmer.

The scheme is demand driven and capacities are allocated to the states based on demand received from them. So far, against the allocation of 3.59 lakh stand-alone solar pumps, more than 82,400 pumps are reported installed.

To ease financing farmers’ contribution, all the three components of PM-KUSUM Scheme are included under priority sector lending guidelines issued by Reserve Bank of India and a number of banks have introduced loan products for PM-KUSUM Scheme. Further, installation of standalone solar pumps is also included under the Agriculture Infrastructure Fund (AIF) and farmers can avail interest subvention facility of AIF.

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