MNRE Extends Timelines For Setting Solar Park Scheme

The Ministry of New and Renewable Energy (MNRE) has extended the timeline of its flagship Solar Park and Ultra-Mega Solar Power Projects Scheme by three years, pushing the deadline to FY 2028-29.

According to a recent notification, the extension is intended to facilitate completion of ongoing parks and to clear committed liabilities. However, the ministry clarified that fresh sanctions and approvals under the scheme will only be granted until March 31, 2026, subject to available capacity.

Started in 2014

The scheme, first launched in December 2014, aims to enable faster roll-out of large-scale solar power projects by providing ready land, transmission infrastructure, and necessary clearances. The government noted that scattered, small-scale projects often face higher costs per megawatt, longer development timelines, and transmission inefficiencies.

Initially designed for 25 solar parks targeting 20,000 MW capacity over five years, the scheme’s target was doubled to 40,000 MW in March 2017, with completion earlier set for 2025-26.

MNRE Support

Under the framework, MNRE provides Central Financial Assistance (CFA) of up to ₹25 lakh per park for preparation of Detailed Project Reports (DPRs). Additionally, CFA of up to ₹20 lakh per MW—or 30% of project cost including grid-connectivity, whichever is lower—is available, linked to specific milestones.

The scheme’s guidelines were first issued in 2017 and subsequently revised in 2018, 2019, and 2023. With the latest extension, the ministry seeks to ensure timely execution of projects already in the pipeline while capping new approvals by FY26.