TL;DR for EPCs
- PM-KUSUM is owned by MNRE but delivered by each SNA.
- Funding is broadly CFA + state share + farmer share — the split varies.
- Bidding terms to know: RfS, EMD, PBG, LD, L1, LoA.
- Pump tech terms: HP, USPC, BoS, DCR, ALMM.
- Every percentage, cost and tariff here is an estimate to verify with the SNA or live tender.
PM-KUSUM has its own short-hand. A single tender can throw RfS, EMD, PBG, L1, DCR and USPC at
you on one page. This glossary explains 34 of the most-used PM-KUSUM terms in plain words, so
your bid team and new staff can read a tender without guessing.
Why a PM-KUSUM glossary matters for EPCs
A PM-KUSUM glossary matters because the scheme is run as a tender, not a walk-in subsidy. To
bid, you read official documents full of abbreviations. Misreading one term — say treating EMD
as non-refundable, or missing a DCR clause — can cost you a bid or a penalty.
This page groups the terms the way they show up in real work: the scheme and its components, the
bodies and roles, the tender and bid words, the money and guarantees, and the technical and
compliance terms. Keep it open next to a live tender. For the full scheme story, start at the
PM-KUSUM hub and the
scheme-explained guide.
Scheme and components
PM-KUSUM stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. It is the central
agriculture-solar scheme, and it has three components.
Component A, B and C
- Component A — decentralised ground-mounted plants, often 0.5–2 MW, on farmer or barren land, selling power to the DISCOM at a fixed tariff.
- Component B — standalone off-grid solar pumps for farms with no grid line, sized in HP.
- Component C — solarising existing grid-connected farm pumps. C1 is a single pump; C2 is a whole agricultural feeder.
For the difference between B and C in the field, see
Component B vs C. For C2 feeder work, see
what feeder solarisation is.
Bodies and roles
Three bodies do most of the work in PM-KUSUM, and an EPC deals with all three.
MNRE, SNA and DISCOM
MNRE (Ministry of New & Renewable Energy) owns the scheme and sets the rules and
the central money. The SNA (State Nodal Agency) — such as MEDA, GEDA or RRECL —
runs it on the ground, issues tenders and empanels EPCs. The DISCOM (distribution
company) buys the power, signs the PPA and pays for it. For the full list, see the
state nodal agencies directory.
Tender and bid terms
These are the words you meet from the day a tender opens to the day you get the award.
RfS, EMD, LoA, L1 and corrigendum
The RfS (Request for Selection) is the tender document that invites bids. You
submit an EMD (Earnest Money Deposit, refundable) to bid. The
L1 (lowest evaluated) bidder usually wins, and gets an LoA
(Letter of Award). A corrigendum is an official change to the live tender — read
every one. EMD amounts vary per tender, so verify them with the live tender.
Money and guarantees
PM-KUSUM money flows three ways, and two guarantees protect the buyer.
CFA, state share, EMD, PBG and LD
Funding is broadly CFA (Central Financial Assistance from MNRE) plus the
state share plus the farmer share. The split varies by
component, state and category, so verify it with the SNA or the latest MNRE order. After you win,
you post a PBG (Performance Bank Guarantee) the buyer can claim if you
under-deliver, and you risk LD (Liquidated Damages) for late delivery. See
PBG, EMD and LD penalties for the numbers to
confirm.
Technical and compliance terms
These terms decide what you buy and how it must be built.
HP, USPC, DCR, ALMM and BoS
Pumps are sized in HP (3/5/7.5/10 HP are common). Every pump uses a
USPC (Universal Solar Pump Controller) under the MNRE specification.
DCR (Domestic Content Requirement) and ALMM (Approved List of
Models & Manufacturers) control where modules and cells come from — both are volatile, so confirm
against the latest MNRE office memorandum. BoS (Balance of System) is everything
else: wiring, mounting and protection. See
DCR and ALMM compliance and the
USPC guide.
Quick A–Z PM-KUSUM term table
Here is the full set in one place — term, full form and a plain-words meaning. Scheme figures
inside the definitions are estimates to verify with the SNA or the live tender.
A–Z PM-KUSUM glossary of 34 terms | Term | Full form | Plain meaning |
| ALMM | Approved List of Models & Manufacturers | An MNRE list of solar modules (and now cells) you are allowed to use in government projects. ALMM rules are volatile — confirm against the latest MNRE office memorandum. |
| CFA | Central Financial Assistance | The central subsidy share MNRE puts in. The CFA percentage varies by component, state and category — verify the current figure with the latest MNRE order. |
| Component A | Decentralised ground-mounted plants | Small solar plants, often 0.5–2 MW, built on farmer or barren land. The plant sells power to the DISCOM at a fixed tariff. |
| Component B | Standalone solar pumps | Off-grid solar water pumps for farms with no grid line. Sized in HP (3/5/7.5/10 HP are common). |
| Component C | Solarisation of grid pumps | Adding solar to existing grid-connected farm pumps. C1 is one pump; C2 is a whole feeder. |
| Corrigendum | Tender amendment | An official change to a live tender — dates, capacity or terms. Always read every corrigendum before you bid. |
| DCR | Domestic Content Requirement | A rule that modules (and sometimes cells) must be made in India. DCR enforcement is litigated — confirm the current rule with MNRE. |
| DISCOM | Distribution company | The state power utility that buys the power, signs the PPA and pays for it. |
| DPR | Detailed Project Report | The full technical and financial plan for a Component A plant or a feeder project. |
| EMD | Earnest Money Deposit | A refundable deposit you submit with a bid to show you are serious. EMD amounts change per tender — verify with the live tender. |
| EPC | Engineering, Procurement & Construction | A firm that designs, buys and builds the system. The main audience for this glossary. |
| Feeder | Agricultural feeder | A power line that serves a group of farm pumps. Component C2 solarises a whole feeder. |
| HP | Horsepower | The size unit for a solar pump motor. Common sizes are 3, 5, 7.5 and 10 HP. |
| L1 | Lowest evaluated bidder | The bidder with the lowest evaluated price, who usually wins the tender. |
| LD | Liquidated Damages | A penalty the buyer charges if you deliver late. LD rates are set in each tender — verify with the live tender. |
| LoA | Letter of Award | The official letter that says you won the tender and can start work. |
| MNRE | Ministry of New & Renewable Energy | The central ministry that owns and funds PM-KUSUM. |
| O&M | Operation & Maintenance | Running and servicing the system after commissioning, usually for 5 years. |
| PBG | Performance Bank Guarantee | A bank guarantee the buyer can claim if you under-deliver. PBG percentage and validity vary by tender — verify with the live tender. |
| PPA | Power Purchase Agreement | The contract under which the DISCOM buys power from a Component A plant at a fixed tariff. |
| RfS | Request for Selection | The tender document inviting bids. Sometimes called RfP (Request for Proposal). |
| RESCO | Renewable Energy Service Company | A model where the developer owns the asset and sells the service, instead of the farmer paying up front (CAPEX). |
| SNA | State Nodal Agency | The state body that runs PM-KUSUM on the ground (for example MEDA, GEDA, RRECL). |
| USPC | Universal Solar Pump Controller | A standard controller that can run different pump motors, required by the MNRE pump specification. |
| Benchmark cost | — | The reference price MNRE/SNA uses to size the subsidy. Benchmark costs are revised periodically — verify the current figure with the SNA. |
| Tariff | Feed-in tariff | The per-unit price the DISCOM pays a Component A plant. Tariffs are discovered or capped per tender — verify with the live tender. |
| VGF | Viability Gap Funding | A grant that fills the gap so a project becomes viable. Used in some Component A rounds. |
| CEIG | Chief Electrical Inspector to Govt | The state authority that approves a grid-connected plant as electrically safe before it runs. |
| Net metering | — | A billing method that credits surplus power exported to the grid, relevant to Component C2 surplus. |
| MoU | Memorandum of Understanding | A signed agreement of intent, sometimes used between an SNA and a developer. |
| Empanelment | — | Getting approved onto an SNA list so you are eligible to bid for its tenders. |
| BoS | Balance of System | Everything other than the panel and pump — wiring, mounting, controller and protection. |
| Commissioning | — | The step where the system is tested and accepted as working before payment. |
| CMS / RMS | Central / Remote Monitoring System | A system that tracks pump or plant performance from a distance for the SNA. |
Source: MNRE PM-KUSUM guidelines and the National Portal. Scheme figures change — verify with your SNA or the live tender.
ALMM · Approved List of Models & Manufacturers
An MNRE list of solar modules (and now cells) you are allowed to use in government projects. ALMM rules are volatile — confirm against the latest MNRE office memorandum.
CFA · Central Financial Assistance
The central subsidy share MNRE puts in. The CFA percentage varies by component, state and category — verify the current figure with the latest MNRE order.
Component A · Decentralised ground-mounted plants
Small solar plants, often 0.5–2 MW, built on farmer or barren land. The plant sells power to the DISCOM at a fixed tariff.
Component B · Standalone solar pumps
Off-grid solar water pumps for farms with no grid line. Sized in HP (3/5/7.5/10 HP are common).
Component C · Solarisation of grid pumps
Adding solar to existing grid-connected farm pumps. C1 is one pump; C2 is a whole feeder.
Corrigendum · Tender amendment
An official change to a live tender — dates, capacity or terms. Always read every corrigendum before you bid.
DCR · Domestic Content Requirement
A rule that modules (and sometimes cells) must be made in India. DCR enforcement is litigated — confirm the current rule with MNRE.
DISCOM · Distribution company
The state power utility that buys the power, signs the PPA and pays for it.
DPR · Detailed Project Report
The full technical and financial plan for a Component A plant or a feeder project.
EMD · Earnest Money Deposit
A refundable deposit you submit with a bid to show you are serious. EMD amounts change per tender — verify with the live tender.
EPC · Engineering, Procurement & Construction
A firm that designs, buys and builds the system. The main audience for this glossary.
Feeder · Agricultural feeder
A power line that serves a group of farm pumps. Component C2 solarises a whole feeder.
HP · Horsepower
The size unit for a solar pump motor. Common sizes are 3, 5, 7.5 and 10 HP.
L1 · Lowest evaluated bidder
The bidder with the lowest evaluated price, who usually wins the tender.
LD · Liquidated Damages
A penalty the buyer charges if you deliver late. LD rates are set in each tender — verify with the live tender.
LoA · Letter of Award
The official letter that says you won the tender and can start work.
MNRE · Ministry of New & Renewable Energy
The central ministry that owns and funds PM-KUSUM.
O&M · Operation & Maintenance
Running and servicing the system after commissioning, usually for 5 years.
PBG · Performance Bank Guarantee
A bank guarantee the buyer can claim if you under-deliver. PBG percentage and validity vary by tender — verify with the live tender.
PPA · Power Purchase Agreement
The contract under which the DISCOM buys power from a Component A plant at a fixed tariff.
RfS · Request for Selection
The tender document inviting bids. Sometimes called RfP (Request for Proposal).
RESCO · Renewable Energy Service Company
A model where the developer owns the asset and sells the service, instead of the farmer paying up front (CAPEX).
SNA · State Nodal Agency
The state body that runs PM-KUSUM on the ground (for example MEDA, GEDA, RRECL).
USPC · Universal Solar Pump Controller
A standard controller that can run different pump motors, required by the MNRE pump specification.
Benchmark cost
The reference price MNRE/SNA uses to size the subsidy. Benchmark costs are revised periodically — verify the current figure with the SNA.
Tariff · Feed-in tariff
The per-unit price the DISCOM pays a Component A plant. Tariffs are discovered or capped per tender — verify with the live tender.
VGF · Viability Gap Funding
A grant that fills the gap so a project becomes viable. Used in some Component A rounds.
CEIG · Chief Electrical Inspector to Govt
The state authority that approves a grid-connected plant as electrically safe before it runs.
Net metering
A billing method that credits surplus power exported to the grid, relevant to Component C2 surplus.
MoU · Memorandum of Understanding
A signed agreement of intent, sometimes used between an SNA and a developer.
Empanelment
Getting approved onto an SNA list so you are eligible to bid for its tenders.
BoS · Balance of System
Everything other than the panel and pump — wiring, mounting, controller and protection.
Commissioning
The step where the system is tested and accepted as working before payment.
CMS / RMS · Central / Remote Monitoring System
A system that tracks pump or plant performance from a distance for the SNA.
How SuryaHub helps your team learn the scheme
Knowing the terms is step one; running a PM-KUSUM job is the harder part. SuryaHub keeps each
tender, EMD, PBG, document set and deadline in one place and runs the job from
SNA and DISCOM steps through
execution to the subsidy claim, so a new hire
can follow the flow without memorising every abbreviation. SuryaHub is pre-revenue; the only real
pilots are Suryantra Energy and RGESPL, and every scheme figure here is a fact to verify, not a
guarantee.
Run PM-KUSUM tenders in one place
See how SuryaHub tracks EMDs, PBGs and deadlines across states.
Book a Demo Frequently asked questions
What does SNA mean in PM-KUSUM?+
In PM-KUSUM, SNA means State Nodal Agency. The SNA is the state body that runs the scheme on the ground, such as MEDA in Maharashtra or GEDA in Gujarat. MNRE owns and funds PM-KUSUM centrally, but the SNA issues tenders, empanels EPCs and releases the state subsidy share.
What is the difference between CFA and the state share in PM-KUSUM?+
CFA is the Central Financial Assistance that MNRE contributes, while the state share is the part the state government adds. PM-KUSUM funding is broadly CFA plus state share plus farmer share. The exact split changes by component, state and category, so verify the current figure with the state nodal agency or the latest MNRE order.
What is the difference between EMD and PBG?+
EMD is the Earnest Money Deposit you submit with a bid to show you are serious, and it is refundable. PBG is the Performance Bank Guarantee you submit after winning, which the buyer can claim if you under-deliver. EMD and PBG amounts and validity vary by tender, so verify them with the live tender document.
What is a RESCO model in PM-KUSUM?+
A RESCO model is one where a Renewable Energy Service Company owns the solar asset and sells the service, instead of the farmer paying the full cost up front. RESCO is the opposite of the CAPEX model, where the farmer or buyer owns the system and pays its capital cost directly.
What is a USPC in PM-KUSUM solar pumps?+
A USPC is a Universal Solar Pump Controller, a standard controller that can run different types of pump motor. The MNRE technical specification requires a USPC so that pumps from different makers work to one standard. Confirm the current USPC specification against the latest MNRE technical document before you procure.
What does L1 mean in a PM-KUSUM tender?+
L1 means the lowest evaluated bidder in a PM-KUSUM tender. The L1 framework applies in many tenders, where the bidder with the lowest evaluated price usually wins the award. Evaluation rules differ between tenders, so read each Request for Selection to see exactly how the SNA scores and ranks bids.
Sources & references
Definitions follow MNRE scheme guidelines, the National Portal and SECI model documents. Any term tied to a number — CFA share, PBG validity, benchmark cost — should be re-checked against the current guideline before you rely on it.
Written by the SuryaHub team · reviewed against MNRE, the PM-KUSUM portal & SNA sources · updated 19 June 2026.
Method: Definitions are drawn from the government sources above and re-checked every 30 days. Mechanic-specific terms (CFA share, PBG validity, benchmark cost) are estimates to verify with the SNA or live tender. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 19 Jun 2026 — first published.
