Lack of a subsidy in KUSUM-A is the main hurdle

January 18, 2023

The lack of a subsidy in KUSUM-A is the primary reason why the scheme has not been as successful as anticipated, mentioned Shri Anil Dhaka, Managing Director, Rajasthan Renewable Energy Corporation. He was speaking at the ‘Rajathan Policy Dialogue on PM-KUSUM component A and component C’ organised by CUTS International. He stressed on the fact that the Agriculture Infrastructure Fund must be utilised to bridge the financing gaps.

Himani Mehta, Assistant Director, Ministry of New & Renewable Energy said that there is a huge potential and farmers across the country have shown interest, but credit must be given to Rajasthan, which remains the front runner with 63 MW of solar projects under component A and 1,100 solar-powered pumps under component C.

Speaking at the conference NK Gupta, Technical Manager, Rajasthan Renewable Energy Corporation reiterated that payment security mechanisms have boosted the confidence of banks in financing farmers to set up solar plants. In order to scale up the KUSUM scheme, benefits under the Rajasthan Investment Promotion Scheme for MSMEs must be extended to farmers.

Deepti Mathur, Executive Engineer, Jaipur Vidyut Vitran Nigam highlighted the importance of  Saur Krishi Ajivika Yojna Portal as it has enabled JVVNL to establish a land bank, which so far has been the biggest challenge for setting up solar power plants.

Banwari Lal Singhoya, Assistant General Manager, State Bank of India stated that the State Bank of India is financing farmers with zero collateral under the KUSUM scheme.

The Rajasthan Policy Dialogue was attended by Anil Kumar Dhaka, Managing Director, Rajasthan Renewable Energy Corporation Limited, NK Gupta, Technical Manager, Rajasthan Renewable Energy Corporation Limited, Deepti Mathur, Executive Engineer, Jaipur Vidyut Vitran Nigam Limited, Himani Mehta, Assistant Director, Ministry of New & Renewable Energy, Banwari Lal Singhoya, Assistant General Manager, State Bank of India, Kritika Kumar, Energy Advisor, GIZ India and Om Prakash Pareek, Founder, Hanuman Gram Vikas Samiti and Sushil Muhnot, Advisor, CUTS International.


For further details, contact:
Akash Sharma, asa@cuts.org
 

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