Shakti Pumps Secures INR 9.40 Cr Order from Jharkhand Under PM-KUSUM

Shakti Pumps Limited, a manufacturer of solar pumps and motors, has received its first order from the state of Jharkhand. The Jharkhand Renewable Energy Development Agency (JREDA) awarded the company a Letter of Award (LoA) for the installation of 400 Solar Water Pumping Systems (SWPS) across various locations in the state. 

The order, valued at approximately INR 9.40 crores (inclusive of GST), falls under Component-B of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme.

The Department of Agriculture, Jharkhand, has mandated Shakti Pumps to design, manufacture, supply, transport, install, test, and commission the solar water pumping systems within 120 days from the date of the Notice to Proceed.

Earlier this month, Shakti Pumps received a Letter of Intent (LoI) from the Department of Agriculture, Uttar Pradesh, for the supply, installation, and commissioning of 12,537 solar water pumps across the entire state. The project is valued at INR 558.16 crore.

Shakti Pumps has been on a good growth trajectory, reporting a 1960 percent surge in net profits in the last 4 years. The Madhya Pradesh-based company is also expanding its global footprint by exporting solar pumps to various international markets. In addition to this latest order from Jharkhand, Shakti Pumps has secured multiple orders under Component C of the PM-KUSUM scheme in several Indian states.

The Component C of the PM-KUSUM scheme provides financial benefits to both farmers and DISCOMs. Under this component, farmers receive an annual income of INR 50,000, while DISCOMs earn a yearly profit of INR 1 lakh. The investment for DISCOMs is anticipated to be fully recovered within 3-4 years, making it a financially viable and sustainable solution for all parties involved.

Under Component-B of the PM KUSUM Scheme, individual farmers receive support to install standalone solar agricultural pumps with a capacity of up to 7.5 HP, aimed at replacing existing diesel pumps or irrigation systems in off-grid areas where grid supply is unavailable. While pumps with capacities greater than 7.5 HP can be installed, the financial assistance is capped at the 7.5 HP capacity.

The recent order from Jharkhand marks another milestone for Shakti Pumps' increasing market presence.