The implementation of Kerala's PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, which aimed to convert agricultural irrigation pumps to solar power, has come under intense scrutiny. Alleged irregularities worth an eye-watering ₹240 crore have surfaced, with allegations ranging from inflated rates to flawed contract awards.
One of the main concerns is the inflated rates at which contracts were awarded. The Agency for New and Renewable Energy Research and Technology (ANERT), responsible for the scheme’s execution, allegedly handed out contracts at prices 146% higher than the base rates set by the central government. These inflated rates apply across the board, raising questions about the financial management of the project.
The figures seem almost too high to ignore. The original tender issued in December 2022 was worth ₹240 crore, a staggering amount for a project of this scale. According to reports, despite the strict guidelines, ANERT found ways to surpass its official financial boundaries. The CEO of ANERT, who can invite tenders worth only ₹5 crore, allegedly approved tenders that exceeded ₹40 crore, well above the prescribed limits.
An even more troubling aspect of this issue is the way in which bids were handled. After Kondaas Automation, the lowest bidder, raised an issue about a pricing error, ANERT allegedly corrected the bid post-submission, which is against the standard operating procedure.
This adjustment allowed Tata Solar, the second-lowest bidder, to win the contract instead of Kondaas. This technical adjustment has raised eyebrows, especially considering it was made after the bids were already submitted, violating normal procurement procedures.
Further questions have been raised about the awarding of contracts to companies with lower technical grades. These companies were still given the same elevated rates as Tata Solar, resulting in an additional ₹69,000 per solar plant for each installation. For a project of this size, that’s a significant amount of money being funneled into the wrong pockets.
What’s even more perplexing is the awarding of rooftop solar installation contracts to companies that hadn’t even submitted bids for that aspect of the project. This move not only raises concerns about transparency but also about the overall efficiency of the scheme.
The PM-KUSUM scheme was designed with the aim of promoting green energy in rural areas, offering farmers the opportunity to switch to solar-powered irrigation systems. Under the scheme, both the Centre and State were to contribute 30% each, while the remaining 40% was to be covered by the beneficiaries. The state government stepped in with a loan arrangement from NABARD to cover both state and beneficiary shares, essentially making the project cost-free for the farmers.
While this model was meant to encourage participation, it has led to fewer complaints from the beneficiaries, as they didn’t have to pay for the project upfront. However, the added financial burden due to inflated prices has raised questions about whether the farmers were truly getting the best deal.
In its defence, ANERT has stated that the base prices issued by the Centre were simply indicative and that the cost of setting up solar plants varies from state to state.
To prevent inexperienced companies from underpricing their bids and stalling the project midway, ANERT introduced a grading system to award contracts based on technical merit. However, this justification does little to address the core issues of inflated rates and procedural discrepancies.
