Some PM KUSUM projects get extension till March 2027

New Delhi: The government has extended the timeline for commissioning of some projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) scheme, providing relief to developers and state agencies facing execution delays.

PM KUSUM, a key scheme aimed at promoting decentralised solar capacity in the agricultural sector, has seen strong interest but uneven implementation across states.

The ministry of new and renewable energy (MNRE) has approved an extension for projects where power purchase agreements or letters of intent were signed or issued on or before December 31, 2025. For such projects, the deadline for commissioning has now been extended till March 31, 2027.


As for the overall scheme extension, the ministry said that the Department of Expenditure has informed the committed liabilities of PM KUSUM will be subsumed under the proposed new scheme PM KUSUM 2.0 which is under discussion, the ministry said in an office memorandum.

The decision follows multiple representations from stakeholders seeking more time, particularly as banks and financial institutions have been reluctant to extend loans under the existing deadlines.

However, given the financing constraints and implementation challenges, states have been asked to coordinate with banks to facilitate financial closure of projects beyond March 31, 2026.

The move is expected to ease pressure on developers, many of whom have faced delays due to headwinds such as procedural hurdles and execution challenges at the state level.

It also provides additional time for projects to achieve financial viability amid evolving market conditions.

The scheme aims to add solar capacity of 34,800 MW by March 2026 with total central financial support of ₹34,422 crore.