The Ministry of New and Renewable Energy has extended the completion deadline for eligible projects under the PM KUSUM scheme to 31 March 2027 for projects with power purchase agreements or notices to proceed issued on or before 31 December 2025. The move responds to delays in financial closure caused by constrained lending by banks and financial institutions and follows multiple representations from stakeholders. The extension applies to projects across all three components of the scheme and seeks to safeguard implementation progress.

MNRE stated that the proposal to extend the broader scheme timeline was taken up with the Department of Expenditure (DoE) and that the DoE indicated committed liabilities under the current scheme will be subsumed into the proposed PM KUSUM 2.0 framework. The new framework is currently under formulation and is expected to provide continuity for projects that cannot secure loans within the original timetable. The ministry advised states to continue engagement with lenders to expedite financial closures.

States have been urged to coordinate with banks and financial institutions to facilitate disbursal and loan agreements for affected projects beyond the prior deadline of 31 March 2026 to ensure continuity of implementation. The extension is intended to reduce the risk of project delays or cancellations while the central authorities finalise arrangements for the next phase. Stakeholders argued that without additional time several projects faced undue financial and operational strain.

The adjustment to the completion timeline reflects an acknowledgement of current lending conditions and attempts to balance fiscal commitments with on ground delivery. Officials expect that subsuming committed liabilities into PM KUSUM 2.0 will streamline support for pipelines already advanced to the stage of formal agreements. The ministry will monitor progress and maintain channels with state governments and financial institutions to support timely commissioning of projects.