The Ministry of New and Renewable Energy (MNRE) has announced an extension of timelines for the financial closure and completion of projects under the PM KUSUM scheme, following requests from multiple stakeholders. Developers and state agencies had raised concerns over delays, particularly as banks and financial institutions were hesitant to extend loans within the existing deadline ending March 31, 2026.
Addressing the issue, the Ministry took up the matter with the Department of Expenditure (DoE). The DoE clarified that the committed liabilities under the current PM KUSUM scheme will be carried forward into the proposed PM KUSUM 2.0, which is currently under consideration.
In the interim, states have been advised to actively coordinate with banks and financial institutions to facilitate loan approvals and ensure financial closure of projects even beyond the earlier deadline. This move is expected to provide relief to developers facing funding constraints.
Furthermore, the Ministry has approved an extension for project completion timelines. Projects for which Power Purchase Agreements (PPAs) or Notices to Proceed (NTPs) were signed or issued on or before December 31, 2025, will now be allowed to complete execution until March 31, 2027.
The decision has been taken with the approval of the Minister for New and Renewable Energy, providing a significant boost to ongoing solar initiatives under the scheme.
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