Purpose
- Financing solar or other renewable energy-based power plants (REPP) of capacity 500 kW to 2 MW on Barren/ uncultivable land backed by PPA (Power Purchase Agreement) with Distribution Companies (DISCOM).
- Agricultural land is also permitted under the scheme provided that solar plants are installed in stilt fashion (i.e., raised structure for installation of Solar panels) and with adequate spacing between panel rows for ensuring that farming activity is not affected.
Features:-
Activity : Installation of solar power or other Renewable Energy based Power Plants (REPP) on barren/ fallow land, pasture lands and Marshlands or in stilt fashion on agriculture land owned by farmer.
Type of Facility: Agricultural Term Loan. BG facility against 100% cash margin.
Margin: 30% of the Project Cost.
Quantum of Loan: Max. 70% of the project cost. Max. Ceiling - Rs.10 Cr.
Debt Equity Ratio (Max):
- Desired Level - 65:35
- Acceptable Level - 70:30
Loan Tenor: Door to Door tenor at Maximum 15 Years (comprising construction, moratorium and repayment period).
Moratorium Period : - Maximum 12 months post COD.
Security: As per Bank’s extant guidelines.
CGTMSE: The borrower can avail the benefit of credit guarantee package (CGTMSE) by registering as MSME. In case, the borrower is availing the facility under CGTMSE, he has to comply with all the relevant guidelines.
Land: The entire parcel of land required for the project should be in the possession of the farmer/applicant.
Repayment: Maximum period of 15 years including moratorium period.
Interest, Fees & Charges
Interest: As per Bank’s extant guidelines.
Upfront fee: As per Extant instructions of Bank from time to time.
Portal : https://pmkusum.mnre.gov.in
Who are eligible?
Individual farmers/ Group of farmers/ Cooperatives/ Panchayats/ Farmer Producer Organisations (FPO)/ Water User associations (WUA).
Document Required:-
- Application Form
- Two Passport Size Photographs.
- ID proof such as Driving License/ Aadhar Card/ Voter Identity Card/ Passport.
- Address Proof such as voter ID card, Driving License, Aadhar Card, etc.
- Proof of land holding duly certified by the revenue authorities
Any Other Information:-PM – KUSUM Scheme (Component A)
