PM-Kusum Yojana Update: States to get loan from Agriculture Infrastructure Fund to set up 10 giga-watt of Solar Plants

States have the choice to get financing at a limited interest fee through the Agriculture Infrastructure Fund (AIF) of Rupees one lakh crore. On the off chance that they need to actualize the PM-Kusum yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), which means to eliminate the utilization of diesel in water system and advance solar technology in the agribusiness area. “Rs 34,422 crore as focal monetary help (CFA) towards the plan will be provided by the ministry of new and renewable energy (MNRE), and for the remainder of the sum, states can benefit from loan advances at a less expensive interest rate from Nabard," RK Singh, Union power minister commented in one of the meetings of RE-Invest, the renewable energy investors meet coordinated by the public authority each and every year.

The complete cost of the Kusum scheme, divulged in February 2019, is fixed around Rs 1.2 lakh crore. The scheme intends to set up 10 giga-watt (GW) of solar energy based plants in desolate grounds of farmers, 17.5 lakh solar pumps are to be installed and integrate electricity feeders with solar power to guarantee just clean energy is utilized for the water system. 30% CFA for the plan will be provided by the centre, while the state governments will give a 30% sponsorship and the leftover 40% will be given by the farmers. "We have merged a portion of the Kusum scheme with the AIF," Joint secretary, MNRE, Amitesh Kumar Sinha said.

PM Narendra Modi in August had officially dispatched the AIF to give credit at subsidised interest rate to agri-business people, start-ups, agri-tech players and farmer bunches for building stockrooms, cold stockpiles and different offices to diminish post-harvest misfortunes. The Center will take charge of about 3% interest subsidy and up to Rs 2-crore credit assurance to expand the suitability of the activities and projects.

Apart from giving extra source of revenue to the farmers who can trade excess power from their solar plants to state run power dispersion organizations, the Kusum scheme supposedly lowers the appropriation weight of the states by decreasing the quantum of power to be provided for the water system. Singh said that big states pay horticultural power subsidies of around Rupees 12,000 crore yearly, and Kusum credits can be taken care of in 4 to 5 years by the states utilizing that cash in the event that they do not need to foot that bill.