Virtual Workshop on Financial Products for Solarization of Pumps under PM-KUSUM Scheme

MNRE has been promoting the implementation of Solar Water Pump to meet irrigation needs for agriculture in the country. Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme was announced in July 2019. Solar Agriculture Pumps offer multifold benefits to various stakeholders and currently have a huge untapped demand. However, higher capital investment and lack of appropriate financing instruments for extending credit for SWP to farmers have been some key hindrances in the large scale adoption of Solar Agriculture Pumps in India. A study has been conducted by MNRE and GIZ to identify suitable Financial Products and implementation models for Off-Grid and Grid-connected Solar Agriculture Pumps under Component B and Component C of the PM-KUSUM scheme. A virtual workshop was conducted to disseminate the details and benefits of the identified financial products. The workshop focused on deliberations and feedback on proposed financial products with and without subsidy support, to facilitate adoption and roll-out of the products by Financial Institutions (FI) which will enable the development of financing ecosystem and achieve scalability under PM-KUSUM scheme. Under subsidy models, the two proposed financial products target farmers in Off-grid areas for providing Loan to Individual Farmer and Loan to Water Group User. The other three proposed financial products target farmers in Grid-connected areas for providing Loan to Individual Farmer, Loan to Discom, and support through a Central Agency. It was discussed that currently, SWP is a push market and with further market development, the amount of subsidy requirement will come down eventually. It was also pointed out that most private companies have tried non-subsidy models and as prices are coming down and efficiency is going up for SWP, non-subsidy models can also be considered. The adequate focus has to be given on capacity building of bankers and FIs which will play a major role in creating awareness and would expedite implementation under PM-KUSUM scheme. Next phase of action would be to strengthen the supply side. The focus will be on seamless integration between demand-side & supply side.

The doodle videos which are created in this project will be available on MNRE & GIZ websites. The workshop was attended by 27 participants from 18 FIs and banks. The opening and closing remarks were given by Joint Secretary, MNRE- Mr. Amitesh Kumar Sinha. 

For more details, please contact Ms. Prerna Sharma.