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MNRE Extends PM-KUSUM Project Completion Deadline to March 31, 2027

The Ministry of New and Renewable Energy has extended the completion deadline for eligible PM KUSUM scheme projects to March 31, 2027, for projects with PPAs or NTPs issued by December 31, 2025.

March 30, 2026. By Mrinmoy Dey

The Ministry of New and Renewable Energy (MNRE) has extended the timeline for completion of select projects under the PM KUSUM scheme till March 31, 2027, amid delays in financial closure due to constrained lending by banks and financial institutions.

The decision applies to projects where power purchase agreements (PPAs) or notices to proceed (NTPs) were issued on or before December 31, 2025, across all three components. The extension follows multiple representations from stakeholders, highlighting challenges in securing loans within the existing scheme deadline of March 31, 2026.

MNRE stated that the proposal to extend the broader scheme timeline was taken up with the Department of Expenditure (DoE). The DoE has indicated that committed liabilities under the current scheme will be subsumed into the proposed PM KUSUM 2.0 framework, which is currently under formulation.

Thus, states have been advised to engage with banks and financial institutions to facilitate financial closure of projects beyond the original deadline of March 31, 2026, ensuring continuity of implementation as the transition to the next phase of the scheme takes shape.

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Ministry of New and Renewable Energy