Be a Part of solar pump business of rs. INR 32,40,00,00,00

Can we become part of KUSUM Solar Pump Scheme?.

potential of solar pump business as per government around 32,40,00,00,000.00

There is a requirement for larger participation from solar integrator, service providers, suppliers and manufacturers .for section B of the scheme

 In last year February the Government launched the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) the target of this innovative scheme is to assist farmers achieve financial stability and water security. Stakeholders suggest the govt make amendments to make sure broader participation and success of the scheme. KUSUM

Why we are not part of KUSUM Solar Pump Scheme

The KUSUM scheme consists of three sections. Under this scheme section A of the scheme, individual farmers, cooperatives, and farmer producer organizations with cultivable or barren lands can install solar projects from 500 kW to maximum 2 MW in size. Under this scheme section B of the scheme, individual farmers will get the government’s support to put in standalone . Under this scheme section C of the scheme, individual farmers will get support to solarize pumps of up to 7.5 HP.

Farmers using grid-connected solar pumps can sell their surplus solar energy and generate extra income. Needless to say, the scheme may be a win-win for farmers and therefore the government. The govt can do away with the agriculture power subsidy reducing the burden on the DISCOMs.”

Now government expanded the scheme under section B, and C. Section B now aims to put in 2 million standalone solar pumps from its previous target of 1.75 million. section C aims at solarizing 1.5 million pumps from a million earlier.

The scheme has opened new avenues for a stable source of income for rural landowners and farmers for 25 years by utilizing their lands. The project helps the farmers with irrigation and mitigates the value of fuel used for running diesel pumps.

Farmers are benefiting from the scheme as they're getting irrigation systems that are consistent and are independent of erratic electricity supply. Furthermore, as states are providing subsidies, their contribution is a smaller amount also.”

Solar Krushi Pump 

Regarding subsidy provided by the govt,  “Payments aren't a concern; the ministry is reviewing this weekly and ensuring that state nodal agencies are releasing timely payments to system integrator.”

Only 5,000 pumps installed against a target of 108,000 solar pumps to be installed within the financial year, so far,  While the scheme has great potential, if some issues got to be addressed for its seamless implementation, accelerated installations, and ensuring higher participation, especially under section B.

Current Eligibility Criteria and issues 

1) At present the situation for the installation of pumps is split into clusters (a group of districts). The bidders got to qualify or be eligible for installing each category of pumps under each cluster – 1, 2, 3, 5, 7.5, and 10 HP. Bidders who quote rock bottom price (L1) + 15% are selected to put in the pumps.

2) After the choice, the winning bidders got to generate leads, meaning they have to seek out farmers who have an interest in installing the pumps and their size preference. If the bidder is qualified to put in 1 and three HP pumps and therefore the farmer is curious about a 5 HP pump, the lead won't be useful. They’re going to need to return and find a farmer who is merely curious about a 1 or 3 HP pump to shut the deal. If the farmer is curious about a 1 or 3 HP pump but doesn’t belong to the cluster where the bidder is listed, the entire exercise is futile.

3) Confusing because it is, the entire exercise involves tons of investment in terms of manpower required to get leads and therefore the indebtedness to rearrange for the (earnest money deposits) bid.

We suggest that the implementing agencies must allow eligible bidders to put in all capacities of pumps under the tender during a cluster. They also suggest the state nodal share the list of farmers who already purchased the pumps and therefore the capacity of pumps they might want to put in.

Performance Bank Guarantee 

4) Requirement of the performance bank guarantee (PBG) 

Generally PGB is 20% of the solar pumps’ cost announced under each cluster. For example, if 7.5 HP capacity 200 numbers of  solar pumps  to be installed during a cluster at a price assumed as ₹300,000 ($4,026)/pump. Each bidder must provide a PBG of ₹12 million ($161,073) to participate within the bid.

This criterion may be a difficult for many integrator, service providers, suppliers and manufacturers.

For several to participate in bids in larger numbers. Instead, PBG might be restricted to the amount of pumps the bidders shall install during a cluster.

Allow Consortium's to Participate

Only a couple of vendors have the financial clout to require part in these tenders across the country. For example 10 HP solar pumps tender through EESL under-section B of the scheme, 

Only Tata Power, Shakti Pumps, Premier Energies, Span Pumps, Junna Solar, and Solex Energy were among the few leading names those can go through it.

We suggest that consortium's of manufacturers and system integrator be allowed to bid. Considering the size of the scheme, manufacturers and installers have suggested that a consortium will have better financial, operational, and merchandise capabilities.

Allow Blue Wafers

The solar modules utilized in the project are mandated to use black wafers, and really few manufacturers are making black wafers within the country. This has core of the sachem's implementation and has led to a shortage of black wafers within the market. It’s also increased the procurement cost of solar modules.

The manufacturers suggest that the govt should permit blue wafers, as there are several players within the market manufacturing solar cells using blue wafers

Component C of KUSUM scheme

The existing pumps are old and consume more amount of energy with less output there for the solarization of existing pumps won't bring desired results as under-section C without replacing old pumps solarization of existing pumps. Therefore, we propose an amendment in section C of the scheme to 

incorporate replacing the prevailing pumps to urge better results. The state governments can approach the commercial bank regarding funding for Agriculture and Rural Development (NABARD) for availing loans, which can further boost the implementation of the project

The success of section B of the scheme, is that gives energy access to non-electrified areas with standalone off-grid pumps and on-grid solar pumps operate in electrified regions.

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 The farmers who were earlier using diesel pumps, are now switching to solar pumps.”

The sachem's objective is commendable, but there are many terms and conditions that the implementing agencies got to revise in consultation with the bidders who have participated in multiple tenders and understand the operational realities.

The scheme should not concentrated to limited parties it should be redesign and must be simpler, practical, and maximum people can participate in it. The goal of all stakeholders, within the end, is that the same – make this scheme an excellent success for rural India and therefore the farming community

Your suggestions and  comments are welcome 

Be a Part of solar pump business of rs. INR 32,40,00,00,00

Be a part of KUSUM Solar Pump Scheme Rupees INR 32,40,00,00,000.00