Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)

Brief
It is a flagship central government initiative launched in 2019 to promote the use of solar energy in the agricultural sector. It aims to provide energy and water security to farmers while increasing their income by replacing diesel pumps with solar-powered alternatives and allowing them to sell surplus energy.

Objectives
- To replace costly and polluting diesel-powered irrigation pumps with modern solar-powered systems
- To provide reliable, daytime power for irrigation, reducing dependence on erratic grid electricity
- To allow farmers to sell surplus solar power back to the grid or lease barren land for solar power plants
- To add a total solar capacity of 34,800 MW by March 2026, contributing to India's non-fossil fuel energy targets

Eligibility Criteria
- The government provides a 60% subsidy on the project cost, with 30% covered by loans, leaving the farmer to pay only 10%
- Solar power ensures farmers can irrigate fields during the day, eliminating the need for dangerous late-night operations
- Farmers can earn a stable income for up to 25 years by installing solar plants on barren or uncultivated land
- Lower fuel (diesel) and electricity expenses lead to higher net profitability from farming

Benefits
- Up to 60% subsidy (30% central + 30% state) is available, with only 10% required from the farmer; the rest is covered by bank loans (applies to Component B & C)
- In North-Eastern states, Hilly states/UTs, and islands, the Central Financial Assistance (CFA) is 50%, with lower beneficiary contribution
- Landowners can earn income by leasing barren land for solar plants (Component A) or selling surplus energy
- Assured daytime solar power eliminates the need for night-time irrigation
- RBI has included this scheme under priority sector lending, ensuring loans at competitive rates