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

Published on: Aug 1, 2026, 08:46:36 IST

By Sanjeev K Jha, Jasjeev Gandhiok

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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.

ABOUT THE AUTHOR
Sanjeev K Jha
Sanjeev K Jha is a senior journalist with nearly three decades of experience covering a wide range of beats, including bureaucracy, politics, and security issues such as ISI-linked activities in border regions. His reporting also extends to culture, with work on music and Bollywood. Currently part of the Political Bureau at Hindustan Times, he focuses on smaller allies within both the NDA and the INDIA bloc. His work offers insight into coalition politics and the evolving dynamics of India’s political landscape, backed by years of on-ground reporting and a deep understanding of governance and power structures.Read More
ABOUT THE AUTHOR
Jasjeev Gandhiok
Jasjeev Gandhiok is an Assistant Editor with Hindustan Times, where he covers environment, climate change, the clean energy transition and wildlife at the National Bureau. Gandhiok has over a decade of experience in journalism and is based in Delhi. He has reported extensively on Delhi and the National Capital Region (NCR). This includes the region's air pollution woes, a polluted Yamuna and on urban wildlife still thriving in the region. He joined HT in October 2021. Prior to that, he had five-year stint at The Times of India in Delhi, where he also covered Delhi, with a focus on environment and wildlife. Gandhiok has covered some recent events around the Capital too, ranging from the farmers' protests, the northeast Delhi riots and the CAA-NRC protests, reporting from the ground on all of these. He also travels across the country to report on how environment and climate change impact everyday life, while also writing on endangered species. His reports in 2019 on toxic leachate from Delhi's landfills led to the National Green Tribunal (NGT) taking suo motu cognisance and ultimately asking the state government to start bio-mining to flatten and remove all three landfills in the capital. He also closely tracks the implementation of government policies on climate, renewable energy and environmental protection. His focus remains on impactful, public-interest journalism which explains how environmental decisions affect people's everyday lives.Read More

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