Small farmers struggle to tap PM-KUSUM solar scheme due to investment, title issues

TGREDCO had invited applications from individual farmers, groups of farmers, Farmer Producer Organisations (FPOs), Self Help Groups (SHGs) and others to set up grid-connected solar power plants on their own or leased lands.

Hyderabad: Financial constraints, ownership complications and eligibility norms have emerged as major hurdles for many small and marginal farmers owning between one and two acres of land in availing benefits under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme.

Telangana Renewable Energy Development Corporation Limited (TGREDCO) had invited applications from individual farmers, groups of farmers, Farmer Producer Organisations (FPOs), Self Help Groups (SHGs) and others to set up grid-connected solar power plants on their own or leased lands.

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The plan was to facilitate ground-mounted, grid-connected solar plants ranging from 500 kW to 2 MW on barren, uncultivable and agricultural lands. Following the invitation, farmers, farmer groups and other eligible applicants filed proposals for solar plants with a total capacity of around 6,000 MW across Telangana.

However, by the July 7 deadline for signing Power Purchase Agreements (PPAs), Earnest Money Deposits (EMDs) were paid only for 1,473 MW worth of projects, and final payments were received for nearly 1,000 MW in cumulative capacity, said TGREDCO Vice Chairman and Managing Director Anila Vavilla.

Setting up a one MW solar plant requires about three-and-a-half to four acres of land and an investment of Rs. 3.2 crore to Rs. 4 crore. For smaller plants of 500 kW to 2 MW capacity, two acres of land are needed with an estimated investment of Rs. 1.5 crore to Rs. 2 crore.

Additionally, farmers must bear the cost of laying power lines from their proposed plant sites to the nearest sub-stations. While the scheme allows for bank loans and encourages group applications, pooling investment remains a major challenge. In several cases, applicants are elderly titleholders, complicating the process of securing loans.

To address this, TGREDCO is continuing to process such applications, providing the land titleholders transfer rights to younger family members, until July 11, to facilitate loan approvals. Despite these challenges, Telangana remains among the best-performing States in implementing the PM-KUSUM scheme, Anila Vavilla said.