PM KUSUM Scheme
Empowering Farmers with Solar Energy Empowering Farmers with Solar Energy Empowering Farmers with Solar Energy Empowering Farmers with Solar Energy Empowering Farmers with Solar Energy Empowering Farmers with Solar Energy Empowering Farmers with Solar Energy
Overview
PM KUSUM aims to reduce dependence on diesel and grid power for irrigation and promote clean energy in agriculture. It helps farmers install solar pumps, set up grid-connected solar plants and solarize existing grid-connected pumps.
Scheme Components
Component A
Solar Pumps for Irrigation
Financial support to individual farmers for installation of off-grid solar water pumps for irrigation.
Learn MoreComponent B & C
Grid Solar Plants & Pump Solarization
A common track covering grid-connected solar power plants set up by farmers, FPOs, Cooperatives or Panchayats, along with the solarization of existing grid-connected agricultural pumps to cut diesel and electricity use.
Learn MoreKey Benefits
- Reduces cultivation cost and increases farmers' income
- Promotes clean, renewable and environment-friendly energy
- Reduces dependence on diesel and grid electricity
- Contributes to energy security and sustainable agriculture
- Helps in efficient water and energy use
Who Can Apply?
- Individual farmers
- Farmer Producer Organizations (FPOs)
- Cooperatives
- Panchayats
- Water User Associations
Financing Details
Explore the purpose, features and financing terms for each PM KUSUM component. Terms are indicative and as per the Bank's extant guidelines.
Component A
Renewable Energy Power Plants (500 kW – 2 MW)
Purpose
Financing solar or other renewable energy-based power plants (REPP) of capacity 500 kW to 2 MW on barren / uncultivable land backed by a Power Purchase Agreement (PPA) with Distribution Companies (DISCOM).
Agricultural land is also permitted under the scheme provided the solar plants are installed in stilt fashion (i.e. a raised structure for the panels) with adequate spacing between panel rows so that farming activity is not affected.
Features, Interest, Fees & Charges
- Activity
- Installation of solar power or other Renewable Energy based Power Plants (REPP) on barren / fallow land, pasture lands and marshlands, or in stilt fashion on agriculture land owned by the farmer.
- Type of Facility
- Agricultural Term Loan. BG facility against 100% cash margin.
- Margin
- 30% of the project cost.
- Quantum of Loan
- Max. 70% of the project cost. Max. ceiling — Rs. 10 Cr.
- Debt Equity Ratio (Max)
- Desired level — 65:35
- Acceptable level — 70:30
- Loan Tenor
- Door-to-door tenor of maximum 15 years (comprising construction, moratorium and repayment period).
- Moratorium Period
- Maximum 12 months post COD.
- Security
- As per Bank's extant guidelines.
- CGTMSE
- The borrower can avail the credit guarantee package (CGTMSE) by registering as an MSME. If availing the facility under CGTMSE, all relevant guidelines must be complied with.
- Land
- The entire parcel of land required for the project should be in the possession of the farmer / applicant.
- Repayment
- Maximum period of 15 years including moratorium period.
- Interest
- As per Bank's extant guidelines.
- Upfront Fee
- As per extant instructions of the Bank from time to time.
For more details, please visit your nearest SBI Branch.
Components B & C
Stand-alone & Grid-Connected Solar Agriculture Pumps
Purpose
Component (B): Installation of 17.50 Lakh stand-alone solar agriculture pumps.
Component (C): Solarisation of 10 Lakh grid-connected agriculture pumps.
Features, Interest, Fees & Charges
- Type of Facility
- Agricultural Term Loan.
- Margin
- Farmer contribution: 10% of benchmark cost of pump.
- Quantum of Loan
- Minimum loan: Rs. 25,000/-
- Maximum loan: Rs. 10.00 lakhs
- Security
- As per Bank's extant guidelines.
- Repayment
- Maximum of 120 months including moratorium.
- Interest Rate
- 1-Year MCLR + 350 bps.
- Upfront Fee
- As per Bank's extant guidelines.
Subsidy
- Central Financial Assistance (CFA)
- 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar agricultural pump.
- State Government
- 30%
- Farmer contribution
- 10%
- Bank finance
- 30%
Subsidy for NE States, Sikkim, J&K, HP, Uttarakhand, Lakshadweep and A & N Islands
- Central Financial Assistance (CFA)
- 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar agricultural pump.
- State Government
- 30%
- Farmer contribution
- 10%
- Bank finance
- 10%
For more details, please visit your nearest SBI Branch.
Switch to Solar. Save More. Earn More.
Be a part of the solar revolution in agriculture with PM KUSUM Scheme.