The Union Cabinet approved the Pradhan Mantri Surya Sarovar Yojana for development of floating solar photovoltaic projects with co-located energy storage systems, with a total outlay of Rs 50.7 billion (bn). The scheme envisages development of 5,000 megawatt (MW) of floating solar photovoltaic projects with co-located energy storage systems having a minimum storage duration of two hours, equivalent to 10,000 MWh. Projects will be sanctioned in the financial years 2026-27 to 2030-31, with disbursement of financial support continuing up to 2032-33. Central financial assistance will be provided at the rate of Rs 10 million (mn) per megawatt after successful commissioning, and an additional grant of up to Rs 5 million (mn) per project will be available for feasibility studies including bathymetry and hydrography assessments, environmental studies and preparatory activities. The scheme is designed to benefit all states and union territories and aims to expand floating solar capacity from the current roughly 700 MW to the planned target. The approval follows an assessment by the National Institute of Solar Energy on national floating solar potential. The National Institute of Solar Energy has estimated floating solar potential of approximately 102.18 gigawatt peak across reservoirs and other inland water bodies, which informed the policy design. The programme seeks to make productive use of existing reservoirs and industrial ponds while reducing competition for scarce land resources. Integration of energy storage systems is expected to support grid reliability and flexibility as renewable capacity grows. Officials estimate the scheme could reduce around 10 million (mn) tonnes (t) of carbon dioxide emissions annually and generate approximately 16,000 to 17,000 full-time equivalent employment opportunities across the project value chain. The programme also aims to promote domestic manufacturing of flotation systems, photovoltaic cells and modules, and energy storage systems in line with the vision of Aatmanirbhar Bharat. It is positioned to contribute to national energy and climate objectives while facilitating optimal utilisation of water resources and advancing the vision of Viksit Bharat.