Centre Approves ₹531 Crore CFA for 553 Solar Power Producers in Rajasthan Under PM-KUSUM

Rajasthan has received a significant boost for its decentralised solar power programme, with the central government approving ₹531 crore in Central Financial Assistance (CFA) for 553 solar power producers operating under Component-C of the PM-KUSUM scheme.

The approved assistance will be released shortly through the Ajmer and Jodhpur electricity distribution companies (Discoms) and transferred directly to the bank accounts of the eligible energy providers.

Component-C of the PM-KUSUM scheme aims to promote the solarisation of grid-connected agricultural pumps while creating an additional source of income for farmers. Under the programme, decentralised solar power plants with capacities of up to 5 MW are established on barren or unused land located within a 5-kilometre radius of electricity substations.

The model allows farmers and local power producers to supply clean electricity to agricultural feeders and sell surplus generation to Discoms, strengthening rural energy infrastructure and reducing dependence on conventional power sources.

Of the total approved assistance, the Union Ministry of New and Renewable Energy (MNRE) has sanctioned ₹379.41 crore for 432 solar power producers connected to the Jodhpur Discom network. These projects represent a combined installed capacity of 429 MW.

Meanwhile, 121 solar power producers associated with Ajmer Discom have been approved for ₹151.21 crore in CFA, covering projects totalling 169 MW of cumulative capacity.

Reportedly, Jaipur, Jodhpur, and Ajmer Discoms have collectively submitted CFA claims worth ₹1,012 crore to MNRE so far.

Out of this amount, the central government has already released approximately ₹670 crore, benefiting 720 solar power producers across the state.

Under the PM-KUSUM framework, developers setting up solar plants for complete agricultural feeder solarisation are eligible for central support of up to 30% of the project cost, subject to plant capacity. The assistance is capped at ₹1.05 crore per MW.

Rajasthan has emerged as one of the leading states in implementing Component-C of PM-KUSUM. A total of 1,312 decentralised solar projects with an aggregate capacity of 3,371 MW have been commissioned across the state.

Of this capacity, 2,647 MW has been installed under Jodhpur Discom, while Ajmer and Jaipur Discoms account for 373 MW and 352 MW respectively.

Notably, Rajasthan is in third position nationally in the category of decentralised solar power projects under PM-KUSUM Component-C.