Cabinet approves 'Pradhan Mantri Surya Sarovar Yojana (PM-SSY)' for Development - 31st July 2026 - Cabinet - Gazette Notification PDF
Issued by Cabinet
Read or download the official PDF of this gazette notification issued by the Cabinet on 31st July 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary The Union Cabinet has approved the ‘Pradhan Mantri Surya Sarovar Yojana (PM-SSY)’ with a total outlay of Rs. 5,070 crore to develop 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with Energy Storage Systems. Projects will be sanctioned between FY 2026-27 and FY 2030-31, with financial disbursements continuing until FY 2032-33. The scheme aims to utilize inland water bodies for renewable energy generation, reduce carbon emissions, and promote domestic manufacturing.
Key Points / Main Content
Project Specifications and Timelines
- Capacity Targets: Development of 5,000 MW of FSPV projects with co-located Energy Storage Systems (ESS) providing a minimum of 10,000 MWh storage (two-hour capacity).
- Implementation Window: Projects are to be sanctioned from FY 2026-27 to FY 2030-31.
- Support Duration: Disbursement of financial support is scheduled to continue through FY 2032-33.
Financial Assistance Framework
- Commissioning Incentive: Central Financial Assistance (CFA) of Rs. 1 crore per MW will be provided following successful project commissioning.
- Preparatory Support: CFA of up to Rs. 50 lakh per project is available for feasibility studies, including bathymetry, hydrography assessments, and environmental studies.
Environmental and Resource Management
- Land Conservation: Utilizes existing reservoirs and industrial ponds to eliminate competition for scarce land resources.
- Emission Reduction: Targeted reduction of approximately 10 million tonnes of CO2 emissions annually.
- Water Utilization: Facilitates the optimal utilization of water resources for renewable energy capacity addition.
Economic and Industrial Growth
- Employment: Expected generation of 16,000–17,000 full-time equivalent jobs across the project value chain.
- Domestic Manufacturing: Promotion of the domestic value chain, including floatation systems, PV cells, modules, and energy storage systems, in line with "Aatmanirbhar Bharat."
- Grid Stability: Integration of energy storage systems to strengthen national grid reliability.
Impact Analysis
States and Union Territories Impact All States and UTs will benefit from increased renewable energy capacity and the gainful utilization of local reservoirs and industrial ponds. Action Required Identify suitable inland water bodies and facilitate project development to tap into the estimated 102.18 GWp floating solar potential.
Project Developers Impact Developers gain access to substantial financial incentives for both the preparatory phase and the post-commissioning phase of FSPV projects. Action Required Undertake necessary feasibility studies (environmental, bathymetry, and hydrography) and ensure successful commissioning to qualify for CFA.
Domestic Manufacturers Impact There will be a significant increase in demand for indigenous floatation systems, PV cells, modules, and energy storage components. Action Required Scale up manufacturing capacity and quality to support the scheme’s requirements and the vision of a self-reliant India.
National Grid Operators Impact The integration of 10,000 MWh of energy storage will enhance overall grid reliability and stability. Action Required Incorporate the new floating solar and storage capacities into grid management and distribution planning.