MNRE Eliminates Requirement of Separate BG for Projects under KUSUM; Also Issues Information on Decentralised Solar Schemes


The Ministry of New and Renewable Energy (MNRE) has eliminated the requirement for a separate performance bank guarantee to support projects that are being set up under Component A of Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan’s (KUSUM).


MNRE has also eliminated the requirement to submit a performance bank guarantee in accordance with the guidelines for solarisation agricultural feeders under component C of the KUSUM program.

The amended guidelines no longer require that developers of renewable energy as a company (RESCO), submit a bank guarantee in order to receive Central Financial Assistance (CFA). After two months of operation, the CFA will be released.


Earlier RESCO developers were required to provide a bank guarantee in order to be eligible for CFA. After 2.5 years, five years, seven years and 7.5 years respectively, the bank guarantee was released in four parts of 25%.


MNRE in a separate notice issued information regarding Decentralized Solar Schemes that were implemented by MNRE.

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While the Guidelines on Decentralized Solar Schemes provide clear information on application and implementation, the office has been receiving questions. These seem to have come from false information on the internet, through channels such as email and WhatsApp messages, according to MNRE.

To clarify the above, MNRE has issued the following clarifications:

  1. The Ministry does not approve, empanel vendors/suppliers/installers/channel partners under these Schemes. The State Implementation Agencies are responsible for empanelling vendors based on the state level or a central tender.
  2. The Ministry does not accept or approve applications from potential beneficiaries to install solar pumps, solar roof systems, and solar power plants (offgrid and gridconnected), as well as solar lighting systems and solarization for existing agricultural pumps.
  3. The State Implementation Agencies are inviting applications under the Scheme. The official Govt site contains details about such agencies.
  4. Ministry doesn’t ask vendors, beneficiaries or other stakeholders to pay any fee or share of any beneficiary share or payment to the Ministry in order for them to participate in any of its schemes. Fraudulent persons/groups are most likely to make such claims.
  5. The Ministry does not appoint testing centers to test the systems that will be installed under these Schemes.
  6. Ministry does not approve any model or make of solar applications like standalone solar pumps, rooftop solar plants, solar street lights, off-grid solar power plants, solar study lamps etc. Specifications issued by the Ministry for such applications are available on the portal.

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