Why in the news ?

• According to the Minister of State  for Power and New and Renewable Energy, Centre has announced a Rs 1.4 lakh­ crore scheme for promoting decentralised solar power production of up to 28,250 MW to help farmers.

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• The Centre will spend Rs 48,000 crore on the ten-year scheme which was announced in the Union Budget 2018-­19. 
• Kisan Urja Suraksha evam Utthaan Mahaabhiyan or KUSUM scheme would provide extra income to farmers, by giving them an option to sell additional power to the grid through solar power projects set up on their barren lands, the Minister said
• It would help in de-­dieselising the sector as also the DISCOMS, he said. 

Kisan Urja Suraksha evam Utthaan Mahaabhiyan (KUSUM)

• A central financial assistance of Rs48,000 crore will be given for the (KUSUM) scheme. The balance will be raised by the states, through loans and farmers themselves to generate 28,250 megawatts.
• Surplus electricity generated by farmers will be bought by state electricity distribution companies (discoms) and will help boost the country’s emerging green economy.
• India had about 30 million farm pumps that include 10 million pumps running on diesel.
• The scheme includes promotion of decentralised solar power production, reduction of transmission losses as well as providing support to the financial health of DISCOMs by reducing the subsidy burden to the agriculture sector.
• The scheme would also promote energy efficiency and water conservation and provide water security to farmers.
• The components of the scheme include building 10,000 MW solar plants on barren lands and providing sops to DISCOMS to purchase the electricity produced, ‘solarising’ existing pumps of 7250 MW as well as government tube wells with a capacity of 8250 MW and distributing 17.5 lakh solar pumps.
• While 30% of the subsidy will be provided by the Union government, an equal amount will come from the states. Another 30% will be met through loans while 10% of the cost will be borne by the farmer.
• The scheme will start with 1.75 million off-grid agricultural solar pumps.
• The scheme will be put up for the cabinet’s approval before implementation.

Source

The Hindu, The Mint.