KUSUM Yojana Solar Pump Loan Subsidy Scheme 2018

KUSUM Yojana (Kisan Urja Suraksha Utthaan MahaAbhiyaan ) Solar Pump Loan Subsidy Scheme (90% Subsidy to farmers) 2018 Online Portal Application Form Process Eligibility Criteria

In his last budget presentation, Finance Minister Arun Jaitley has announced about many schemes and facilities for the farmers of the state. KUSUM scheme is one of the many schemes announced by the FM in this budget. In KUSUM scheme farmers of the nation will get financial assistance to install solar water pumps for irrigation system. A lump sum amount has been allocated by the central government of India to implement the scheme.

KUSUM (Kisan Urja Suraksha Utthaan Maha Abhiyaan ) Scheme Solar Pump Loan Subsidy Yojana

Launch Details

KUSUM scheme will be officially launched in coming financial year 2018-19. The official announcement for the same has been made during the presentation of Union Budget 2018 on 1st February 2018. On Friday, 2nd February 2018, the Power Ministry has officially announced about the scheme launch and the budget allocation for the KUSUM scheme in New Delhi.


The primary objective of the scheme is to increase farmers’ income as well as to provide cost-effective irrigation facility. By installing solar panels farmers also can generate electricity and sell them to earn extra money.

Key Features of the scheme

  • Benefits: KUSUM scheme was previously operated in rural India. Earlier under this scheme farmers used to get 30% subsidy on the cost of solar pump production. Now according to the new KUSUM scheme, farmers will get 60% cost subsidy, equally carry by state and the central government, on solar pump production. Additionally, the incentives will be given to the discoms that will buy power from the farmers, generated by them.
  • Production Capacity: This year the central government of India has allocated Rs. 48, 000 Cr to this KUSUM Scheme. According to the ministry this year production target is 28, 250 MW in next 10 years.

Specification (Notification)

  • Components: There are 4 main components in this scheme. They are distribution of 17.5 lakh solar pumps, establishing and setting up solar plants of capacity 10,000 MW on barren lands across the nation, government tube-wells of having capacity 8250 MW and solarising already existing pumps with capacity of 7250 MW. These are the four components under this scheme.

Loans and Subsidy:

As mentioned 60% of the total cost of solar pumps’ production will be carried out by the government, 30% of the remaining 40% will be carried by bank loans; finally last 10% will be borne by the farmer himself.

Budget Allocation for KUSUM Scheme

Firstly for the first component, distribution of 17.5 Lac solar off grid pumps will receive Rs. 22, 000 Cr for implementing the scheme. For the second component, ground mounting of 10,000 MW capacity, will receive Rs. 4, 875 Cr. For the third component, Rs. 15, 750 Cr has been allocated to solarise the existing pumps. Finally Rs. 5000 Cr has been allocated for the solarising grid connected farm pumps.


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