MNRE extends PM KUSUM project deadline to March 2027

The Ministry of New and Renewable Energy (MNRE) has extended the implementation timeline for projects under the PM KUSUM scheme, providing relief to developers and state agencies facing financing hurdles.  

The deadline extension applies to projects where Power Purchase Agreements (PPAs) or Notification to Proceed (NTPs) were signed or issued on or before December 31, 2025. Such projects will now have until March 31, 2027 to achieve completion, an extension of one year from the earlier deadline of March 31, 2026.

The move comes in response to requests from multiple stakeholders, including developers and state implementing agencies, who flagged that banks and financial institutions were declining to extend loans due to the tight timelines under the current scheme. The financing squeeze had threatened to stall a significant pipeline of projects in advanced stages of development.

Separately, the Ministry has also taken up the matter of extending the broader scheme with the Department of Expenditure (DoE). The DoE has indicated that the committed liabilities under PM KUSUM will be absorbed into PM KUSUM 2.0, which is currently at the proposal stage. States have been asked to coordinate with banks to facilitate loan disbursals and financial closure beyond March 31, 2026, in anticipation of the transition to the successor scheme.

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