☀️ Why Solar Pumps Are Still a Dream for Farmers?
The government of India devised a wonderful scheme to help farmers and save the environment by replacing 8mn diesel pumps with solar pumps. Sadly, it is yet to show results. Here's why.
Sometimes, even the best-laid plans falter.
This is a theme that has become increasingly common with government schemes.
Once again they came up with the perfect scheme to help farmers, reduce costs and save the environment all at once.
But once again this plan has remained just that: a plan.
Wondering what this plan is and why it is not being implemented? ReadOn!
⚡The Solar Pump Plan
In 2019, the Indian government launched the PM-Kusum plan which aimed to replace all the electric and diesel-powered water pumps that farmers use in their fields with solar pumps.
Why?
Because the current pumps that farmers use aren't up to the mark.
You see, the farmers get subsidised or free electricity from states to run these electric pumps.
This costs states around Rs. 1 lakh crores each year.
But because this service is free, it is often not reliable.
Especially when the demand for electricity is high (like in summers).
State energy providers then usually reroute energy to paying customers.
So, farmers often face power cuts that leave their crops dry and prone to failure and even ruin their pumps.
Till now the only other solution to this problem was to opt for a diesel-powered pump.
But this also has its own problems.
While state-provided electricity is free, diesel is much much costlier, with prices rising constantly.
Not to mention these pumps lead to a lot of pollution.
💡 India currently has around 8 million diesel pumps which emit 15.4 million tonnes of emissions each year.
So, the government decided to kill three birds with one stone.
And the solar pump scheme was launched.
This would also help India meet its goal of installing 100GW of solar energy by 2022.
An all-around win-win situation.
To facilitate the adoption of solar pumps, the central government announced that it would bear 30% of the cost of the pump, while the other 30% would be borne by the state government.
Farmers can also get an additional bank financing of 30%.
So, essentially they only have to pay 10% of the cost of the solar pump upfront.
But despite this blockbuster deal, the installation of solar pumps has been very slow.
Only 23% of the pumps that were sanctioned under the scheme have been installed.
8 states have had zero pumps installed.
But why?
🤔 The Problems in the Best Laid Plans
The government was working on the right track, trying to make solar pumps affordable for farmers to increase adoption.
But they overestimated farmers' spending ability.
You see, most Indian farmers can't afford even 10% of the Rs. 2.42 lakhs-Rs. 4.59 lakhs it takes to install a solar pump.
The average monthly income of a farmer is Rs. 10,218.
And most farmers have an average debt of around Rs. 70,000.
So, paying off even 10% of the solar pump cost is a huge task.
Also, 10% is a misleading figure. You see, most farmers don't get the 30% loan from banks or NBFCs because of their low creditworthiness.
And even if they do end up getting a loan, they usually have to put their land as collateral (a huge risk), and pay high-interest rates.
Because of this, some farmers pay double the cost that they actually owed for the solar pump.
Now, some states are trying to solve this problem by increasing their subsidy amount to 40%. But only some states can afford to do so.
Many others cannot even afford to pay the 30% subsidy that they are required to. Covid and the government's delays in paying states the taxes they are owed have emptied state coffers.
The result? Slow installation of solar pumps and continued problems for farmers.
So, what's the solution for this?
Well, some non-profits and agencies are trying to help farmers by connecting them and allowing a group of farmers to buy and use one solar pump.
But most farmers don't want to share pumps.
Some agritech startups that lend money or help farmers adopt renewable energy products are trying to make a difference in this space. But a lot more needs to be done to make a difference throughout the country.
What do you think could be potential solutions? Let us know!
💡In a line: The government is trying to make things better for farmers and the Earth through the same scheme but it has misinterpreted the depth of farmers’ pockets.
💡Quick question: Do you think subsidies for pumps can be a long term solution or should the government come up with better options?
Share this with your friends via WhatsApp or Twitter and help them declutter news from noise! See you tomorrow :)
You can also listen to our stories. Catch it on Spotify, Apple Podcast, Amazon Music, Google Podcasts, Gaana or Jio Saavn.
If you are coming here for the very first time: Don’t forget to join us on WhatsApp to get daily updates! 👇
Hello,
Is anyone else also not getting WhatsApp updates?
What will be done to the diesel and electric pumps?