The Ministry of New and Renewable Energy (MNRE) has extended the timelines for financial closure and project commissioning under the PM-KUSUM scheme, citing delays in loan disbursements and requests from stakeholders. The move is expected to provide significant relief to solar pump companies with strong order books under the scheme.
In an official memorandum, the ministry said that many developers have had trouble getting loans because banks and other financial institutions have been hesitant to lend money beyond the previous deadline of March 31, 2026. Following advice from the Department of Expenditure (DoE), MNRE has adjusted the new deadlines to fit with the upcoming PM-KUSUM 2.0 framework in order to address these concerns.
Revised Deadlines Across Components
The extension applies to projects where Power Purchase Agreements (PPAs) or Notices to Proceed (NTPs) were issued on or before December 31, 2025. Under the revised schedule:
- Component A & Component C (FLS):
Financial Closure: September 30, 2026
Project Commissioning: March 31, 2027 - Component B & Component C (IPS):
Project Commissioning: September 30, 2026
These updated timelines are aimed at ensuring smoother execution while maintaining alignment with policy transitions.
Push for Timely Implementation
MNRE has told state governments to work closely with banks and other financial institutions to speed up loan approvals and make sure that financial closure happens on time. The ministry stressed that the current plan will eventually be replaced by PM-KUSUM 2.0, so sticking to the new deadlines is very important for finishing the project.
The memorandum further clarified that any additional extensions beyond the revised deadlines will be considered only on a case-by-case basis. State Implementing Agencies (SIAs) have been directed to prioritise project completion within the stipulated timelines.
Scheme Progress and Impact
PM-KUSUM is a demand-driven program that allocates resources based on the needs of the state and the progress of the project. As of December 2025, Component A of the plan has added about 720 MW of capacity, Component B has added about 4,400 MW, and Component C has added about 5,830 MW.
The programme has benefited over 21.77 lakh farmers across the country. Maharashtra leads in fund disbursement with over ₹4,486 crore, followed by Haryana, Rajasthan, Uttar Pradesh, Gujarat, and Jharkhand.
Supporting Solar Growth
The extension shows that the government is serious about speeding up the use of solar power in farming while also fixing financial problems. MNRE wants to make sure that projects go more smoothly and that the solar pump market continues to grow under the PM-KUSUM scheme by giving more time and clearer policies.
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