Farmers seek extension as PM Kusum moves slowly

MAHESH AVADHUTHA | Hyderabad 

Farmers in Telangana are growing increasingly anxious as the deadline for the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) approaches, with the ambitious solar programme progressing at a painfully slow pace in the state.

Launched by the Union government in 2019 to promote solar energy in agriculture and enhance farmers’ incomes, the scheme aims to add 34,800 MW of renewable energy capacity nationwide by March 2026. One of its key segments, Component A, focuses on setting up decentralized ground mounted or stilt mounted grid connected solar plants on farmers’ lands with capacities ranging from 500 kW to 2 MW.

Across the country, the target under this component is 10,000 MW. However, progress has been limited, with only 839 MW installed so far, less than ten percent of the target.

In Telangana, the programme has moved even slower. Although the Centre sanctioned 1,797 MW of capacity to the state, only 6 MW of projects have been grounded so far. Telangana joined the scheme relatively late, taking it up only in March 2025 under the Congress government.

The state’s nodal agency, Telangana Renewable Energy Development Corporation, conducted extensive outreach across districts to encourage farmer participation. Farmers owning two to seven acres of land came forward to establish solar plants of 0.5 MW to 2 MW capacity. As a result, power purchase agreements have been signed with 1,156 farmers, covering the entire sanctioned capacity.

Despite this encouraging response, implementation remains stalled. With the scheme’s current deadline of March 2026 barely weeks away, farmers who have already entered agreements are worried about the fate of their projects.

State officials say the major bottleneck lies in securing bank loans. Establishing solar plants of the required capacity requires investments running into several crores of rupees. Banks are conducting detailed due diligence, including credit score checks and collateral requirements, which has slowed approvals.

Farmers say the financial conditions are particularly challenging. A farmer from Mahabubnagar district who signed an agreement for a 2 MW solar plant on six acres of land said the total project cost is around Rs 8 crore. Banks are asking for 30 percent margin money, which amounts to about Rs 2.5 crore, a sum many farmers cannot afford.

Several farmers have appealed to the government to intervene by easing loan conditions or facilitating financing arrangements. They also want TGREDCO to organize joint meetings with banks to help farmers navigate the loan process.

Officials maintain that the situation may improve soon. They say loan sanctions have picked up since January and projects worth 40 to 50 MW are expected to be grounded in the coming weeks.

Meanwhile, Telangana has yet to begin work on the other major components of the scheme. Under Component B, which aims to install off grid solar agricultural pumps to reduce diesel use, the state has installed none of the 20,000 pumps sanctioned by the Centre. Similarly, under Component C, meant for solarisation of grid connected pumps, not a single installation has taken place despite Telangana receiving the highest allocation of 28,000 pumps.

With thousands of farmers having already signed agreements and invested time and resources, the coming weeks will be crucial.

Telangana Solar Energy Association (TSEA) President Burra Ashok Kumar Goud expressed serious concern over the slow progress of solar plant installations under the PM Kusum Scheme in Telangana. He said farmers who obtained approvals and entered agreements are worried as not a single project has begun, even though the deadline is approaching on March 31. Without an extension, farmers will be unable to complete installations in time due to delays in clear guidelines, bank financing hurdles, and lack of coordination with companies.

Many farmers are also being misled by firms from other states offering low quality equipment without proper assurances. Goud urged the Telangana government and central authorities to extend the scheme at least until December, ease banking conditions, ensure quality standards, and hold consultations so farmers can benefit and the scheme succeeds.