PM-KUSUM (Component B): The Diesel Replacement Strategy
If you are a farmer running your irrigation pumps on diesel, you are actively burning your own profit margin. The Pradhan Mantri Kisan Urja Suraksha evam Uttham Mahabhiyan (PM-KUSUM) Component B scheme is designed to stop this cash bleed permanently.
The 60-30-10 Capital Structure
The government knows that setting up a standalone, off-grid solar pump is expensive. To make it viable, the scheme uses a highly subsidized financial structure for pumps up to 7.5 HP:
- 60% Government Subsidy: The Central Government provides 30%, and the State Government matches it with another 30%. You never have to repay this.
- 30% Bank Financing: A collateral-free Priority Sector Loan covers a third of the cost, usually repaid over 5 to 7 years.
- 10% Farmer Margin: This is your only upfront out-of-pocket expense to secure the asset.
The Banker's Secret: Your loan is functionally "free." If structured correctly, the monthly EMI you pay to the bank will be significantly lower than the amount you were already spending on diesel. You buy the solar asset using the money you were going to burn anyway.
How to Use This Analyzer
Don't calculate your loan; calculate your cash flow. Input your required pump capacity (HP) and your current monthly diesel expenditure in the calculator. Our engine will map out your exact capital requirement, your bank EMI, and the month you achieve a net-positive cash flow.