India approves farmer support, floating solar capacity boost

India's Union Cabinet has sanctioned a series of measures designed to bolster farmer welfare, enhance sports infrastructure, and accelerate the nation's shift towards clean energy. Key decisions include the extension of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme until fiscal year 2031 and the approval of the Pradhan Mantri Surya Sarovar Yojana (PM-SSY) to develop 5,000 MW of floating solar capacity.

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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.

The PM-SSY initiative, backed by a ₹5,070 crore budget, focuses on establishing floating solar power plants coupled with battery storage. Between FY27 and FY31, the government plans to install 5,000 MW of capacity, with each project mandated to include a minimum of two hours of energy storage. This program is expected to significantly increase renewable energy generation, stimulate domestic manufacturing, generate employment opportunities, and contribute to reducing carbon dioxide emissions by an estimated 10 million tonnes annually.

Financial support under PM-SSY will extend until FY33. The Central government will provide Financial Assistance (CFA) of ₹1 crore per MW for eligible solar projects post-commissioning. Additionally, up to ₹50 lakh per project is available for feasibility studies, including crucial environmental and preparatory assessments to de-risk development. This financial backing is considered necessary due to the specialized installation process involving anchors, floaters, and moorings, making floating solar competitive with ground-mounted projects.

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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.

In parallel, the Cabinet approved ₹3.15 lakh crore for the continuation of the PM-KISAN scheme from FY27 to FY30. This scheme directly transfers ₹6,000 annually in three equal installments to eligible landholding farmer families. Since its inception in 2019, over ₹4.47 lakh crore has been disbursed to farmers. A recent evaluation by NITI Aayog indicated that the scheme has been instrumental in supporting agricultural activities and farm investments, with a high percentage of beneficiaries reporting increased farm income and reduced reliance on informal credit.

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In a separate decision, the Cabinet approved ₹3.15 lakh crore for the continuation of PM-KISAN from 2026-27 to 2030-31.