Page 70 - Policy & Economic Report - July 2025

POLICY AND ECONOMIC
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The total financial assistance allocated for these projects is approximately ? 410.77 crores, out of
which ? 41.582 crores has been released. A structured monitoring and feedback mechanism has been
incorporated for pilot projects being implemented in the road transport sector under NGHM. The
agencies executing these projects are required to regularly submit performance reports on hydrogen
vehicle operations, including vehicle efficiency, fuel consumption, safety aspects, and utilization
patterns. The learnings from these pilot projects support the assessment of techno – economic
viability of hydrogen – based mobility solutions and facilitate future policy interventions and
deployment of green hydrogen vehicles in India.

16. Cabinet approves 'Pradhan Mantri Surya Sarovar Yojana (PM-SSY)' for Development of Floating
Solar Photovoltaic Projects with Energy Storage Systems with a total outlay of Rs.5,070 crore

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the 'Pradhan Mantri
Surya Sarovar Yojana (PM-SSY)’, a Scheme for the development of Floating Solar Photovoltaic (FSPV)
Projects with Energy Storage Systems (ESS) with a total outlay of Rs.5,070 crore.

The scheme envisages the development of 5,000 MW of Floating Solar Photovoltaic projects with co-
located Energy Storage Systems having a minimum storage capacity of two hours i.e.,10,000 MWh.
The projects will be sanctioned during FY 2026-27 to FY 2030-31, with disbursement of financial
support continuing up to FY 2032-33.

The approval follows the recent assessment undertaken by the National Institute of Solar Energy
(NISE), which has estimated a floating solar potential of approximately 102.18 GW across reservoirs
and other suitable inland water bodies in the country.
Under the scheme, Central Financial Assistance (CFA) of Rs. One crore per MW will be provided for
eligible Floating Solar Photovoltaic projects after successful commissioning. In addition, CFA of up to
Rs.50 lakh per project will be available for undertaking feasibility studies, including bathymetry and
hydrography assessments, environmental studies, and other preparatory activities required for de-
risking the project development.

All States and Union Territories will benefit through this scheme. The scheme would enhance the
floating Solar PV capacity in the country by 5,000 MW, which is presently around 700 MW only. These
projects would provide an opportunity to gainfully utilize existing reservoirs & industrial ponds, and
eliminate competition for scarce land resources. The integration of an energy storage system will help
strengthen grid reliability. The scheme would help in the reduction of around 10 million tonnes of CO2
emissions annually. It would help in the generation of approximately 16,000–17,000 full-time
equivalent employment opportunities across the project value chain. The scheme would also promote
domestic manufacturing of floatation systems as well as the entire value chain of the projects, like PV
cells, modules, energy storage systems, etc., and support the vision of Aatmanirbhar Bharat.

and resource efficiency.

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