Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Ministry of New and Renewable Energy (MNRE) has extended the commissioning deadline for select projects under the PM KUSUM scheme to March 31, 2027, offering relief to solar developers and state agencies facing delays. The decision applies to projects where power purchase agreements or letters of intent were issued by the end of 2025. The extension follows concerns over slow financial closure, with banks showing limited lending appetite under earlier timelines. States have been directed to coordinate with financial institutions to expedite funding. The scheme, aimed at decentralised solar generation for the agricultural sector, continues to see uneven implementation across regions, prompting revised timelines and discussions around a successor framework under PM KUSUM 2.0.
The Ministry of New and Renewable Energy (MNRE) has extended the commissioning deadline for certain projects under the PM KUSUM scheme to March 31, 2027, following delays in execution and financing, with the decision taken in the past week to provide relief to developers and state implementing agencies. The extension applies to projects where power purchase agreements or letters of intent were issued on or before the end of 2025. Advertisement
The PM KUSUM scheme, which focuses on promoting decentralised solar capacity in the agricultural sector, has witnessed uneven progress across states due to procedural and financial constraints. Developers and stakeholders had sought additional time, citing difficulties in achieving financial closure within the earlier deadline of March 2026.
Under the revised framework, commissioning timelines for feeder-level solarisation projects under Components A and C have been extended to March 2027, while financial closure deadlines for these projects have been pushed to September 2026. For individual pump solarisation projects under Components B and C, commissioning is expected to be completed by September 2026.
Officials indicated that one of the primary challenges has been limited access to financing, with banks and financial institutions showing reluctance to extend loans under the earlier timelines. As a result, the ministry has directed state authorities to engage with lenders to facilitate funding and ensure that projects achieve financial closure within the revised schedule.
The extension also aligns with broader policy discussions around the transition to a revised scheme framework, with the Department of Expenditure indicating that existing liabilities under PM KUSUM will be subsumed into a proposed PM KUSUM 2.0 programme currently under consideration.
The PM KUSUM scheme, launched to support solarisation of agricultural pumps and decentralised power generation, has been a key component of India's renewable energy strategy. It aims to reduce dependence on conventional energy sources, lower electricity subsidies, and provide farmers with an additional income stream through surplus power generation.
Despite strong policy intent and initial uptake, implementation has faced challenges including land availability, grid connectivity, financing constraints, and coordination between multiple agencies. These factors have contributed to delays in project execution, necessitating timeline revisions to ensure completion of ongoing projects.
The revised deadlines are expected to provide additional time for developers to address financial and operational bottlenecks while maintaining continuity in project execution. However, the ministry has indicated that further extensions will be considered only on a case-by-case basis, signalling an emphasis on adherence to the updated schedule.
The extension reflects the government's approach of balancing policy targets with on-ground implementation realities, particularly in large-scale decentralised renewable energy programmes. As the scheme evolves towards its next phase, the focus is expected to remain on improving execution efficiency and ensuring timely completion of projects already under development.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
