Most States can recover cost of free solar pumps in less than 4 years

Twesh Mishra New Delhi | Updated on July 21, 2020

KUSUM (Kisan Urja Suraksha evam Utthaan Mahaabhiyan), the Centre’s solar pump distribution scheme, was first announced in the Union Budget 2018-2019. Representative image   -  The Hindu

Most States will take less than four years to completely recover the initial investment for giving free solar pumps to farmers. These pumps will be disbursed under the Pradhan Mantri Kisan Urja Suraksha evm Utthan Mahabhiyan (PM-KUSUM) scheme.

The centre aims to disburse 1.71 lakh new solar pumps and solarise 0.82 lakh existing grid connected irrigation pumps.

Recovery estimate

According to data compiled by the Ministry of Power, the investment would be paid back from the amount that states currently earmark for agricultural subsidy on electricity.

The cost recovery estimate is being done while assuming the installation cost at ₹ 4 crore per MegaWatt (MW). It includes the solar plant cost at ₹ 3.5 crore per MW and feeder separation cost at ₹ 0.5 crore per MW. The centre estimates that these ventures would be profitable for State government-controlled Power Distribution Companies (Discoms) when Agricultural subsidy will be zero from the fifth year onwards.



Published on July 20, 2020

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