A Parliamentary panel calls for a review of the PM-KUSUM scheme, citing delays and insufficient subsidy. The report highlights challenges faced by farmers and recommends modifications for improved effectiveness.
New Delhi, Dec 10 (PTI) A Parliamentary panel has called for review of Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme as it found various gaps in it.
The scheme was launched in March 2019 to provide financial support to farmers for installation of standalone solar pumps, solarization of existing grid-connected agriculture pumps, a Parliamentary Standing Committee on Energy said in its report tabled in Parliament on Tuesday.
The scheme also provides farmers an opportunity to become solar entrepreneurs by installing solar power plants on their barren/fallow agriculture land.
The panel observed that targets under different components of the scheme could not be achieved and hence its timeline has been extended till March 2026.
Ministry of New and Renewable Energy (MNRE) has stated that the reasons for slow progress under the scheme include lack of financing to farmers under Component-A (use of land for solar energy generation), delay in tendering process and lack of interest by States under Component-B (installation of solar pumps).
Also, lack of interest by farmers in individual pump solarization under Component-C (replacing diesel pumps by solar powered one) was responsible for slow progress of the scheme.
To overcome these issues, the ministry has undertaken certain measures like inclusion of Component-A under Agriculture Infrastructure Fund (AIF), allowing state-level tender for procurement of standalone pumps, including system integrators to work as vendors, solarization of agriculture feeders instead of individual pumps under Component-C etc.
The committee recommended that under Component-A as part of the scheme should be revisited by the ministry as the investment required to set up a 2MW solar power plant is around Rs 9 crore which is huge by all means, especially for marginal and small farmers.
Further, it stated that there is no subsidy on this component.
With regard to Component-B, the panel pointed out that subsidy is only for up to 7.5 Horsepower (HP) solar pumps which is proving to be insufficient for farmers.
Given the fact that many districts of India have become water deficient, 7.5 HP pump capacity is not suitable for all regions, it opined.
Therefore, it recommended that the ministry may conduct a detailed study to understand the ground situation and accordingly modify the component.
With regard to Component-C , it noted that only around 37,000 pumps have been solarised even though more than 33 lakh pumps have been sanctioned.
Therefore, it recommended that the ministry may see to it that long gestation period of more than 18 months is reduced and the sanctioned pumps actually reach farmers on time.
The committee also recommended that apart from households and government buildings, the ministry may consider including schools, hospitals, small industries and other institutional buildings within the subsidy component of the PM-Surya Ghar: Muft Bijli Yojana.
This will not only increase the demand in the market but will also bring in private investments, encourage domestic manufacturing as well as create more job opportunities in the solar sector, it opined.
About the National Bioenergy Programme, the panel observed that there was a budgetary mismanagement under the programme whereby the allocation has been reduced at revised stage over the years.
The reduction is significant in 2023-24 when the estimated amount of Rs 381.85 crore was reduced by a huge 80 per cent to only Rs 75 crore at revised stage.
Even after this huge reduction, the entire amount was not utilized, it stated adding that the under-utilization has also been a persistent issue under this programme.
The committee recommended prioritisation of this much-needed programme and timely disbursement of the subsidy to encourage private developers to invest and develop bioenergy sector.
It noted that the increased prices of construction materials is proving costly for developing biogas plants in rural areas.
The panel feels that a part of the subsidy may be given in advance to encourage biogas development in rural areas.
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