Particulars

Scheme guidelines for PM KUSUM

Purpose

Ø   Component A: Setting up of Decentralized Ground/ Stilt Mounted Grid Connected Solar or other Renewable Energy based Power Plants (REPP) by farmers on their land.

Ø  Component B: Installation of Stand-alone Solar Agriculture Pumps.

Ø  Component C:  Installation of New Solarised of Grid Connected Agriculture Pumps including Feeder Level Solarization.

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Eligibility

Component A: Individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organizations (FPO)/Water User associations (WUA). The beneficiaries are termed as Renewable Power Generator (RPG).

 Component B & Component C : Individual Pump Solarization (IPS) / Feeder Level Solarisation (FLS):

All Individual farmers are eligible. However, priority to be given to small and marginal farmers who are using Micro irrigation systems.

Cooperatives / Panchayats/ Water User Associations (WUA)/ Farmer Producer Organizations (FPO)/ Primary Agriculture Credit Societies (PACS) or cluster based irrigation systems are also eligible.

Priority to be given to existing agriculture customers/ borrowers.

 Component A & Component C (FLS):

·         Capacity of the REPP is ranging from 500 kW to 2 MW.

·         REPP should be preferably installed within 5 km radius of sub-station to avoid transmission loss.

·         RPG should have a Power Purchase Agreement (PPA) with DISCOMs which is valid up to 25 years from Commercial Operation Date (COD) of the project.

·         The RPG shall provide Earnest Money Deposit (EMD) of Rs. 1

Lakh/MW in the form of Bank Guarantee along with Expression of Interest (EoI).

Ø  Component B & Component C (IPS):

·      Only for replacement of existing diesel Agriculture pumps / irrigation systems by solar pumps in off-grid areas, where grid supply is not available.

·      Installation of new solar agriculture pumps shall also be permitted under this scheme except in dark zone areas.

·      Maximum Solar PV capacity in kW is allowed as per the pump capacity in HP. For example, 3 HP pump capacity cannot have solar capacity of more than 3 Kw.

·      Pumps of capacity higher than 7.5 HP may be allowed, but the CFA will be limited to pump of 7.5 HP.

Quantum of loan

 Component A:

70% of project cost enumerated in DPR.

 Component B & Component C:

With state Share:

1.    30% of project cost enumerated in DPR.

2.    10% of project cost enumerated in DPR for Himalayan, Island & NE States.

Without state Share:

1.    60% of project cost enumerated in DPR.

2.    40% of project cost enumerated in DPR for Himalayan, Island & NE States.

*In case the State Government provides subsidy, Loan amount will reduce accordingly.

Margin

 Component A: Margin is 30% of project cost.

 Component B & Component C:

· 10% of project cost

· In case the State Government provides subsidy more than 30%, the beneficiary share will reduce accordingly.

Rate of Interest

 Security

  Up to Rs. 1.60 lakhs:

·         Hypothecation of Assets created out of our finance.

Above Rs. 1.60 lakhs:

·         Hypothecation of Assets created out of our finance.

·         Mortgage of landed property with Post development security value of minimum 125% of the loan amount.

·         Collateral Security to be taken wherever RoI concession is sought.

Tri-partite agreement to be executed between DISCOMS, Borrower and Bank for receipt of sale proceeds of power produced to Escrow Account with our Bank.

Repayment

 Component A & Component C (FLS):

15   ears including repayment holiday upto 24 months.

 Component B & Component C (IPS):

Within 10 years including repayment Holiday upto 24 months. Interest during moratorium to be paid along with future installments and Repayable in monthly/ Quarterly/ Half-yearly/ Yearly installments depending on income generation.