NEW DELHI: The Ministry of New and Renewable Energy (MNRE) on Fridayb said that it has expanded the scope of the PM-KUSUM scheme in an effort to enable greater solar energy generation in the farm sector. Under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) scheme, the Centre supports the creation and running of solar power plants set up by individual farmers and farmers’ organisations.
While the earlier version of the scheme had allowed solar plants to be set up on barren, fallow and agricultural lands, the tweaks to the plan will now permit the building of such plants on pasture and marshy land owned by farmers too.
According to the MNRE, in order to support small farmers, solar projects smaller than 500 kW may be allowed by states based on techno-commercial feasibility. The selected renewable power generator (RPG) shall commission the solar power plant within twelve months from date of issuance of Letter of Award (LoA), it added.
Moreover, there shall be no penalty on RPG for shortfall in solar power generation from minimum prescribed Capacity Utilization Factor. According to the amendements, the MNRE will retain 33 per cent of eligible service charges for nationwide Information, Education and Communication (IEC) activities.
The ministry’s order also says that it may release 50 per cent of eligible service charges for the sanctioned quantity after placement of LoA for preparatory activities. For solar pumps to be set up and used by water user associations or farmer producer organisations for cluster-based irrigation systems, central financial assistance (CFA) will be allowed for solar pumps of capacity higher than 7.5 HP. Eligibility for participation in the centralised tender has also been amended to allow joint ventures of solar equipment manufacturers with integrators to bid too.