Lack of Subsidy in PM Kusum Scheme Hinders its Success: Anil Dhaka, MD, RREC

Energetica India, January 19, 2023

The lack of a subsidy in PM Kusum scheme component A is the primary reason why the scheme has not been as successful as anticipated, mentioned Anil Dhaka, Managing Director, Rajasthan Renewable Energy Corporation Limited (RREC).

He was speaking at the ‘Rajasthan 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.

On the other hand, Himani Mehta, Assistant Director of Ministry of New & Renewable Energy (MNRE) 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.

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, added NK Gupta, Technical Manager at Rajasthan Renewable Energy Corporation.

Besides, Deepti Mathur, Executive Engineer at Jaipur Vidyut Vitran Nigam Ltd (JVVNL) 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 of the State Bank of India (SBI) stated that SBI is financing farmers with zero collateral under the Kusum scheme.

The Rajasthan Policy Dialogue was attended by Anil Kumar Dhaka, Managing Director, RRECL, NK Gupta, Technical Manager, RRECL, Deepti Mathur, Executive Engineer, JVVNL, Himani Mehta, Assistant Director, MNRE, Banwari Lal Singhoya, Assistant General Manager, SBI, Kritika Kumar, Energy Advisor, GIZ India, Om Prakash Pareek, Founder, Hanuman Gram Vikas Samiti and Sushil Muhnot, Advisor, CUTS International.

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