The Government of India has announced a landmark ₹5,000 crore loan-fund initiative under the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan) programme to accelerate deployment of solar systems in the agricultural sector. The fund aims to reduce farmers’ reliance on diesel, cut irrigation costs, and create supplementary income streams through solar power generation.

Scheme highlights:

• Central Financial Assistance (CFA) remains a key element under PM-KUSUM with up to 30% of benchmark costs supported; certain special regions may receive higher CFA (up to 50%).
• The loan fund will ease farmer contributions and speed up installations of solar pumps and grid-connected solar assets on agricultural land.
• Implementation will be coordinated via state implementing agencies, DISCOMs and partner banks — making the scheme demand-driven and locally tailored.

Why it matters: Solar irrigation replaces diesel-run pumps, significantly reducing recurring fuel costs for farmers. Where interconnection and local regulation allow, surplus daytime generation may be fed back to the grid, generating additional revenue. The scheme also supports India’s continuing push toward renewable energy and decentralised generation.

What vendors and farmers should do next:

• Farmers: Register with your state PM-KUSUM portal or the designated state implementing agency to check eligibility and apply for loans/subsidies.
• Vendors/EPCs: Monitor state tenders, partner with local banks for loan linkage, and prepare turnkey solutions compliant with PM-KUSUM technical requirements.
• SolSetu users: If you are an installer or project owner, list your services on SolSetu and highlight expertise in PM-KUSUM projects to attract farmer leads.

Important caveats: Each PM-KUSUM component (A/B/C) has specific eligibility rules and technical standards. Implementation may face delays due to land documentation, grid-interconnection procedures and local financing terms — stakeholders should read state guidance carefully before proceeding.

Quick links & resources:
• Check your state implementing agency for PM-KUSUM registration.
• Contact local agricultural banks for priority-sector loan linkage.
• For vendor support, list your PM-KUSUM services at https://solsetu.com/submit-listing.