Ministry of Power (MoP), vide its Notification dated 22.07.2019, has issued Guidelines for Implementation of Pradhanmantri Kisan Urja Suraksha Evam Utthaan Mahaabhiyaan Scheme (PM KUSUM) for farmers.

• To achieve the ambitious target of 100 GW of Solar Power generation by 2022, it has been planned to develop decentralized Solar energy plants of capacity 500 kW to 2 MW which could be connected directly to existing 33/11 kV sub-stations of Distribution Company, thus saving in transmission system requirement apart from T&D losses.
• Such plants near these sub-stations may be developed, preferably by farmers, giving them an opportunity to increase their income by utilising their barren and uncultivable land for solar or other renewable energy based power plants.
• MNRE on 13.01.2021 had sanctioned 500 MW capacity under PM KUSUM Component-A scheme for FY 2020-21 to MSEDCL.

Farmers / group of farmers / cooperatives / panchayats / Farmer Producer Organisations (FPO) / Water User associations (WUA)

Day time power supply to Ag consumers.

Increase in Farmers income by utilizing their barren and uncultivable land for solar plants.

Agriculture consumers reducing their burden of subsidy.

Saving in transmission system requirement.

Saving in T& D losses through decentralized solar plants.

Farmers/Cooperatives/ Panchayats / FPO / WUA shall design Engineering, Manufacture, supply, Erection, Testing and commissioning solar power plant/plants of capacity of minimum 0.5 MW to maximum 2 MW with cumulative capacity of 500 MW at different locations on barren/uncultivable land or in case of cultivable land, project will be installed on Stilts in Maharashtra regions on BOO basis and its Operation and Maintenance for the period of 25 years.

Farmers/Cooperatives/ Panchayats / FPO / WUA can opt for developing the project through developer(s) by providing land on lease basis. The land owner will get lease rent as mutually agreed between the parties. The lease rent may be in terms of Rs per year per acre of land or in terms of Rs per unit energy generated per acre of land area. The farmer(s) may opt for payment of lease rent directly in their bank account by the DISCOM, from the payment due to the developer.

Farmers/Cooperatives/ Panchayats / FPO / WUA will carry out the pre-feasibility of the available land & will prepare the bankable DPR, financial model & will have to get project related permissions & statutory for the site.

Farmers/Cooperatives/ Panchayats / FPO / WUA/ Solar Power Generator (SPG) shall do all the infrastructure works like development of land, topographical survey, Geological soil test, construction of approach road to the site, Periphery Road, fencing to land plot, Power evacuation , Grid connectivity and all other related works required for the completion of the project at their cost.

The ceiling tariff per Kwh is 3.10 per kWh; PPA will be signed for 25 years between successful bidder & MSEDCL.

All Clearances required from the State Government and other local bodies are to be obtained by SPG for setting up the solar plant.

PPA shall be executed within two months from the date of issue of LoA.

PPA shall be executed within two months from the date of issue of LoA.

Minimum CUF of 15 % on annual basis.

DISCOM will maintain LC and Escrow Arrangement.

EMD in the form of Bank Guarantee: Rs. 1 Lakh/MW with EoI.

PBG: Rs. 5 Lakh/MW within 30 days from date of issue of LoA.

EMD encashment: SPG fails to execute the PPA within stipulated period.

The PBGs validity: 12 months from the date of issue of LoA.

Return of EMD to unsuccessful SPG: within 15 days from issuance of LoA to selected SPG(s).

Prevailing MNRE/BIS specifications and quality control orders applicable for solar modules, inverters, BoS and other equipment shall be followed.