The Ministry of New and Renewable Energy (MNRE) has extended timelines for financial closure and commissioning of certain projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program, providing relief to stakeholders grappling with financing constraints.

The extension applies to projects where power purchase agreements have been signed or notices to proceed have been issued on or before December 31, 2025. These projects were earlier required to be completed within the program’s original timeline ending March 31, 2026.

For Components A and C relating to feeder-level solarization, the deadline for achieving financial closure has been extended to September 30, 2026, while project commissioning must be completed by March 31, 2027.

For projects under Component B and Component C involving individual pump solarization, the commissioning deadline will now be September 30, 2026.

MNRE has directed states to ensure that projects are completed within the revised timelines. Any further extension beyond this period will be considered only on a case-by-case basis.

The Ministry stated that it had received multiple requests to extend commissioning timelines beyond March 31, 2026, citing difficulties in securing loans from banks and financial institutions under the current schedule.

The decision comes amid a broader policy shift, with the government planning to subsume the existing PM-KUSUM program into a revamped PM-KUSUM 2.0 framework. The memorandum notes that the Department of Expenditure advised against extending the current program in its existing form, instead recommending that the remaining implementation timeline be aligned within the new program structure.

The move is expected to provide a crucial window for developers facing funding bottlenecks while maintaining pressure to execute on time. By limiting the extension to projects that have already achieved key contractual milestones, the Ministry has sought to balance relief with accountability, while ensuring continuity as the program transitions into its next phase.

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