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Govt clears floating solar capacity boost, PM-Kisan extension
NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a series of measures aimed at strengthening farmer welfare, expanding sports infrastructure and accelerating India’s clean energy transition
NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a series of measures aimed at strengthening farmer welfare, expanding sports infrastructure and accelerating India’s clean energy transition.
The decisions include extending the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme until FY31 with an outlay of ₹3.15 lakh crore, clearing the ₹5,070-crore Pradhan Mantri Surya Sarovar Yojana (PM-SSY) to develop 5,000 MW of floating solar capacity backed by battery storage, among others.
The government said the measures are expected to boost renewable energy generation, support domestic manufacturing, create jobs and ensure continued financial assistance to millions of farmer families.
Under PM-SSY, the government plans to install 5,000 MW of floating solar capacity between 2026-27 and 2030-31. Each project will be required to include a minimum energy storage capacity of two hours (10,000 MWh). Financial support under the scheme will continue until 2032-33, officials aware of the matter said.
They said the Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW for eligible solar photovoltaic projects after commissioning.
“In addition, a CFA of up to ₹50 lakh per project will also be available for undertaking feasibility studies, including bathymetry and hydrography assessments, environmental studies, and other preparatory activities required for de-risking the project development,” an official requesting anonymity said.
The approval follows an assessment by the National Institute of Solar Energy, which estimated a floating solar potential of around 102.18 GWp across reservoirs and other suitable inland water bodies in India. At present, the country has just over 700 MW of installed floating solar capacity.
“The CFA is primarily being provided as the installation process here involves the use of anchors, floaters and moorings. The subsidy covers that cost, so it makes it competitive and on par with ground-mounted solar projects,” said an official familiar with the scheme.
Officials said the programme is expected to reduce around 10 million tonnes of carbon dioxide emissions annually and generate about 16,000-17,000 full-time equivalent jobs.
In a separate decision, the Cabinet approved ₹3.15 lakh crore for the continuation of PM-KISAN from 2026-27 to 2030-31. Under the scheme, eligible landholding farmer families receive ₹6,000 annually in three equal instalments directly into their bank accounts.
According to the government, more than ₹4.47 lakh crore has been transferred to farmers through 23 instalments since the scheme’s launch in 2019. The latest instalment benefited more than 9.49 crore farmers, with over ₹18,984 crore released.
The Centre said an evaluation by NITI Aayog found that more than 92% of surveyed beneficiaries used the assistance for agricultural activities and farm investments, while around 85% reported higher farm income and reduced dependence on informal credit.
