KUSUM Scheme Offers Loan Subsidy For Solar Pump Use
The KUSUM scheme, or Kisan Urja Suraksha Utthaan Maha Abhiyaan scheme, has been announced as an initiative to support the needs of farmers in India. The scheme will assist farmers with getting solar pumps prepared for their irrigation systems. Such pumps would work with renewable energy to help keep farms operational. The scheme will assist with providing financial assistance in the form of loans. In fact, the scheme itself is an extensive over a similar program.
Details of Launch
The new scheme was launched by Finance Minister Arun Jaitley. This was used as a part of the new budget. A lump sum was allocated by the central government for getting the loan subsidy ready. This was introduced as a part of the Union Budget 2018.
The scheme will assist farmers with keeping their farms and irrigation systems operational. This will also assist farmers in generating income. The power produced by a pump may be sold by the farmer to other property owners, thus providing the farmer with added income.
Part of this scheme entails working with a plan to increase the power of existing pumps. This includes creating new solar grids for pumps that use traditional forms of energy.
Points of the Scheme
- The scheme offers a 60 percent cost subsidy on the cost to get a solar pump ready. This is an increase over the 30 percent subsidy that had been offered in the past.
- 30 percent of the cost will be handled by bank loans. The farmer would only have to cover the final 10 percent cost associated with the pump.
- The cost of the scheme will be covered by the state and central governments.
- The scheme will entail Rs. 48,000 crore of government funds.
- The goal is to get 28,250 MW of power produced by the solar pumps in the program over the next ten years.
- 17.5 lakh pumps will be distributed in the scheme. These can produce up to 10,000 MW of power and may work to increase the capacity of other pumps that are already working at the moment.
The work being supported by the KUSUM scheme is vital for keeping farms around India functional. The effort will help to cover the cost associated with getting a proper pump ready, thus making it easier for various farms around India to work while even generating potential income.