PM-KUSUM Yojana: Solar-Powered Irrigation for Odisha's Farmers — Up to 60% Subsidy
A complete guide to the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, and how Alfa India, an MNRE-empanelled channel partner, can help farmers and landowners across Odisha make the switch to solar.
What is PM-KUSUM?
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is a flagship scheme of the Ministry of New and Renewable Energy (MNRE), launched in 2019 to bring solar power to India's agricultural sector. The scheme was designed with a simple goal: free farmers from the rising cost of diesel and grid electricity for irrigation, while giving landowners a new way to earn income from solar power.
The scheme works through three components: Component A, which lets farmers and panchayats lease land for small solar power plants and earn income from power sold to the DISCOM; Component B, which funds standalone solar irrigation pumps (1–7.5 HP) for farms without a grid connection; and Component C, which solarises existing grid-connected pumps, letting farmers run on solar by day and sell surplus power back to the grid.
How Much Subsidy Can You Get?
PM-KUSUM subsidy for Components B and C is structured as a mix of central and state support, plus a bank loan option:
| Contribution | Share of System Cost |
|---|---|
| Central subsidy | ~30% |
| State subsidy | ~30% (varies by state) |
| Bank loan | ~30% |
| Farmer's share | As low as 10% (varies by state) |
This effectively brings subsidy support up to around 60% of the system cost in most states, with higher central support (up to ~50%) for North-Eastern states, hilly regions, and island Union Territories. Some states also offer additional top-ups for SC/ST and small/marginal farmers, further reducing the farmer's own contribution.
Here's how that typically plays out by pump size under Component B:
| Pump Capacity | Approx. System Cost | Approx. Subsidy (60%) | Approx. Farmer's Share |
|---|---|---|---|
| 1 HP | ₹1.0 – 1.2 lakh | ₹60,000 – 72,000 | ₹40,000 – 48,000 |
| 2 HP | ₹1.4 – 1.6 lakh | ₹84,000 – 96,000 | ₹56,000 – 64,000 |
| 3 HP | ₹1.8 – 2.1 lakh | ₹1.08 – 1.26 lakh | ₹72,000 – 84,000 |
| 5 HP | ₹2.5 – 3.2 lakh | ₹1.5 – 1.9 lakh | ₹1.0 – 1.3 lakh |
| 7.5 HP | ₹3.5 – 4.2 lakh | ₹2.1 – 2.5 lakh | ₹1.4 – 1.7 lakh |
Figures are indicative and vary by pump type (DC/AC, submersible/surface), site conditions, and current market prices. Actual subsidy percentage and farmer's contribution depend on the state top-up notified for Odisha at the time of application — confirm exact figures with OREDA or Alfa India before budgeting.
Who Is Eligible?
Broadly, you can apply if you are:
- An individual farmer, farmer group, cooperative, panchayat, or Farmer Producer Organisation (FPO)
- In possession of valid land records for the site of installation
- Applying for a site that is un-electrified or currently reliant on diesel pumping (for Component B)
- The owner of an existing grid-connected agricultural pump eligible for solarisation (for Component C)
Documentation generally includes land ownership records, Aadhaar, bank account details, and existing electricity connection details where applicable.
How the Application Process Works
- Apply through your State Nodal Agency — in Odisha, this is the Odisha Renewable Energy Development Agency (OREDA), since PM-KUSUM implementation varies by state and there is no single national application portal.
- Choose the correct component based on your requirement — standalone pump (B), grid solarisation (C), or land leasing (A).
- Submit land and identity documents as required by the state agency.
- Select an empanelled vendor, such as Alfa India, once your application is approved.
- Installation and commissioning of the solar pump or system by the vendor.
- Subsidy application against the system cost — the farmer pays only their share upfront, or through a bank loan where eligible.
MNRE has repeatedly warned farmers against fake websites and agents demanding registration fees or advance payments — genuine PM-KUSUM applications should only be made through the official state nodal agency, and there is no fee for registration itself.
Why This Matters for Farmers in Odisha
OREDA has active rollout of PM-KUSUM Component B across rural Odisha, with standalone solar water pumping systems from 1 HP to 7.5 HP being installed for small and marginal farmers, particularly those using micro-irrigation. For a state where diesel pumping remains common and grid access can be inconsistent in farming areas, solar irrigation offers lower running costs, reliable daytime power exactly when it's needed, and a 25-year asset that keeps paying back long after the diesel expense would have added up.
The challenge most farmers face isn't wanting solar — it's navigating the right component choice, state nodal agency paperwork, and vendor selection correctly the first time.
How Alfa India Can Help
Alfa India is an empanelled Channel Partner of MNRE (Government of India), with over two decades of experience delivering solar rooftop, ground-mounted, and pumping solutions across Odisha and beyond, for government, industrial, and rural development projects. Our team handles the entire journey for you:
- Site assessment and correct pump/system sizing (1 HP to 7.5 HP and above)
- Guidance on which component (A, B, or C) fits your land and connection status
- Supply, installation, and commissioning of solar pumping systems
- Post-installation maintenance and service support
If you're a farmer or landowner in Odisha exploring solar irrigation under PM-KUSUM, get in touch with our team for a free site assessment and guidance through the application process.
Alfa India is headquartered in Bhubaneswar, Odisha, with a branch office in Rourkela, and has been delivering solar power solutions, water technology, industrial equipment, and air conditioning solutions for over 20 years.