Cabinet Approves Rs 5,070-Cr PM Surya Sarovar Yojana to Boost Floating Solar Power
New Delhi: The Union Cabinet on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a new flagship scheme with an outlay of ₹5,070 crore aimed at accelerating the development of floating solar power projects integrated with energy storage systems across the country.
Announcing the decision after the Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said the scheme seeks to add 5,000 MW of Floating Solar Photovoltaic (FSPV) capacity on reservoirs and other suitable inland water bodies, significantly enhancing India's renewable energy infrastructure.
Under the scheme, the floating solar projects will be integrated with Energy Storage Systems (ESS) offering a minimum of two hours of storage, equivalent to 10,000 MWh, to improve grid reliability and ensure efficient management of intermittent solar power.
The projects will be sanctioned between FY 2026-27 and FY 2030-31, while financial assistance will continue to be disbursed until FY 2032-33.
To encourage project development, the Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW for eligible projects after successful commissioning. Developers will also receive up to ₹50 lakh per project for feasibility studies, including bathymetry and hydrography surveys, environmental assessments and other preparatory work to reduce implementation risks.
The approval follows an assessment by the National Institute of Solar Energy (NISE), which estimated India's floating solar potential at approximately 102.18 GWp across reservoirs and inland water bodies.
According to the government, the scheme will increase India's floating solar capacity from the current 700 MW to 5,700 MW, benefiting all States and Union Territories.
Besides expanding clean energy generation, the programme is expected to optimise the use of reservoirs, dams and industrial ponds for renewable energy production, reducing the need for land acquisition while improving grid stability through battery storage.
The government estimates that the initiative will reduce carbon dioxide emissions by nearly 10 million tonnes annually and generate 16,000–17,000 full-time equivalent jobs across manufacturing, construction, installation, operations and maintenance.
The Cabinet said the scheme will also strengthen domestic manufacturing of floating platforms, solar photovoltaic modules, energy storage systems and related equipment, supporting the Aatmanirbhar Bharat initiative.
The government said the PM Surya Sarovar Yojana will play a key role in expanding India's renewable energy capacity, supporting the country's energy transition and climate commitments, and advancing the vision of Viksit Bharat.
