Good News for Farmers! Shakti Pumps Plans Business Expansion, Pinning Hopes on PM-Kusum Yojana

PM-KUSUM Update: Shakti Pumps (India) on 11 April 2021 announced its plans to expand business next year (2022) as the company looks for a bigger share in the Government’s PM-KUSUM scheme of solar water pumps.

It is important to mention that under Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan popularly known as PM-KUSUM Yojana that was launched in 2019, the Centre as well as States offer subsidy to the farmers for setting up solar pumps. It is being executed through tendering in phases.

While speaking to news agency PTI, Dinesh Patidar, Chairman and Managing Director of Shakti Pumps said, "The scheme has great potential as diesel pumps are unviable for farmers & electric pumps have limitations. We expect to supply more pumps under the scheme. We are looking at expanding our capacity next year."

Patidar added that the investment would be made on working capital & capacity expansion. However, the investment amount will be decided next year.

He further told the PM-KUSUM yojana is doing great as in the 1st year of the implementation, 50,000 solar agricultural pumps were installed all over the country against a target of one lakh set for the FY2020-21.

He said, "We installed around 15,000 solar pumps under the yojana. We are expecting more demand in the upcoming years as awareness about the scheme increases."

It must be noted that for the 2nd year, the Centre’s target is four lakh agriculture solar pumps.

About Shakti Pumps

Shakti Pumps is the manufacturer as well as exporter of stainless-steel water pumps, motors & solar pumps. The company exports to over 100 countries, with branches in the UAE, US and Australia. Shakti Pumps is listed in the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).

PM Kusum Yojana Details

Under PM Kusum, farmers, a group of farmers, cooperatives and panchayats can apply to set up solar pumps. The total cost of this scheme is divided into 3 categories. The Central Government provides 60 percent subsidy to farmers and 30 percent of the cost will be given by Government in form of loan. Farmers only have to pay just 10 percent of the total cost. They can sell electricity generated from the solar panels and the fund received after selling electricity could be used to start a new business.