Cabinet approves ₹5,070 crore PM Surya Sarovar Yojana for 5,000 MW floating solar projects

New Delhi [India], July 31 : The Union Cabinet on Friday approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070 crore scheme for the development of 5,000 MW of Floating Solar Photovoltaic (FSPV) projects with co-located Energy Storage Systems (ESS), aimed at expanding renewable energy capacity and strengthening grid reliability.
According to an official release, the scheme, approved by the Cabinet chaired by Prime Minister Narendra Modi, envisages the development of floating solar projects with a minimum energy storage capacity of two hours, or 10,000 MWh. The projects will be sanctioned between FY 2026-27 and FY 2030-31, while financial support will continue to be disbursed up to FY 2032-33.
The approval follows an assessment by the National Institute of Solar Energy (NISE), which estimated a floating solar potential of around 102.18 GWp across reservoirs and other suitable inland water bodies in the country.
Under the scheme, the Centre will provide Central Financial Assistance (CFA) of ₹1 crore per MW for eligible floating solar projects after successful commissioning. In addition, financial assistance of up to ₹50 lakh per project will be provided for feasibility studies, including bathymetry and hydrography assessments, environmental studies and other preparatory activities required for project development.
The government said "the scheme would enhance the floating Solar PV capacity in the country by 5,000 MW, which is presently around 700 MW only."
According to the release, all States and Union Territories will benefit from the scheme. It aims to promote the use of existing reservoirs and industrial ponds for renewable energy generation, reducing pressure on land resources while integrating energy storage systems to improve grid reliability.
The government said the scheme is expected to reduce around 10 million tonnes of carbon dioxide emissions annually and generate approximately 16,000-17,000 full-time equivalent employment opportunities across the project value chain. It also aims to promote domestic manufacturing of floatation systems, photovoltaic cells, modules and energy storage systems, supporting the vision of Aatmanirbhar Bharat.
The scheme will further contribute to renewable energy capacity addition, support national energy and climate objectives, and facilitate optimal utilisation of water resources while advancing the vision of Viksit Bharat.