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MNRE Extends PM-KUSUM Project Deadline to March 2027 Amid Financing Delays

The Ministry of New and Renewable Energy (MNRE) has extended the completion deadline for select projects under the PM-KUSUM scheme to March 31, 2027. The extension applies to projects that have secured Power Purchase Agreements (PPAs) or Notices to Proceed (NTPs) on or before December 31, 2025.

The move comes in response to delays in achieving financial closure, largely due to limited lending support from banks and financial institutions. Stakeholders had raised concerns about the challenges in arranging project financing within the earlier deadline of March 31, 2026, prompting the government to revise the timeline.

According to MNRE, the extension covers projects across all three components of the scheme, ensuring that eligible developers receive additional time to complete implementation. The ministry also noted that the proposal to extend the broader scheme timeline has been taken up with the Department of Expenditure (DoE).

The DoE has indicated that existing financial commitments under the current PM-KUSUM framework will be carried forward into the upcoming PM-KUSUM 2.0 scheme, which is currently being developed. This transition aims to maintain continuity while strengthening the scheme’s long-term impact.

In the meantime, states have been advised to work closely with banks and financial institutions to expedite financial closure for pending projects. The extension is expected to provide relief to developers while ensuring steady progress in expanding solar-powered agricultural infrastructure across the country.