What is PM-KUSUM?
PM-KUSUM — Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan — is the Government of India's flagship scheme to bring solar energy to rural India, with a specific focus on farmers, agricultural feeders, and decentralised renewable energy.
Launched by MNRE in 2019, PM-KUSUM aims to add 30.8 GW of solar capacity through three distinct components.
For B2B solar companies, PM-KUSUM is an active procurement pipeline generating hundreds of tenders and thousands of crores in equipment orders every quarter.
"PM-KUSUM is the single largest driver of decentralised solar procurement in India."
— B2B Solar Research, 2025–26
The Three Components of PM-KUSUM
PM-KUSUM is structured into three distinct components — A, B, and C.
Component A drives the largest individual project values and requires the most complete BOS procurement.
The RESCO Model: Zero-Upfront Solar Explained
The most distinctive feature of PM-KUSUM Component A is the RESCO (Renewable Energy Service Company) model. Under RESCO, the developer finances, designs, installs, and operates the solar plant at zero upfront cost.
This is why many PM-KUSUM tenders in Rajasthan show a contract amount of ₹0 (Tariff-based RESCO).
| Aspect | Standard EPC Model | RESCO Model (PM-KUSUM A) |
|---|---|---|
| Who finances? | Government / authority | RESCO developer (private) |
| Who owns plant? | Government from day one | RESCO for 25 yrs, then transfers |
| Contract amount | Fixed lump sum | Tariff per unit (₹3.10/kWh) |
| Risk on contractor | Delivery & performance | Financing + 25 yrs of performance |
| B2B vendor sells to | EPC contractor (upfront) | RESCO developer (upfront + spares) |
| O&M responsibility | Separate O&M contract | RESCO for full 25-year term |
| B2B opportunity size | Large upfront orders | Upfront + 25-yr spares |
A panel manufacturer offering a 30-year linear performance warranty will consistently beat a cheaper competitor.
Key Buyers & Awarding Authorities
PM-KUSUM projects are awarded by state DISCOMs, nodal agencies, and renewable energy departments.
The most active PM-KUSUM Component A authority in India.
Gujarat's state utility awards solar capacity under competitive bidding.
Covers central Rajasthan.
Implement PM-KUSUM aggregation schemes on behalf of multiple states.
UP has a large pipeline of Component A and B projects.
Handles eastern Rajasthan PM-KUSUM A.
Materials & Components Procured
Every PM-KUSUM Component A project requires a standard set of materials and components.
Remote Monitoring Systems (RMS) are a non-negotiable MNRE requirement.
How a PM-KUSUM Project Flows: Tender to Commissioning
Understanding the project lifecycle helps B2B vendors time their engagement correctly.
Tender Issuance
DISCOM or state nodal agency publishes tender.
Technical & Financial Bid Submission
EPC contractors or RESCO developers submit bids.
Award of Contract (AOC)
Winning company receives AOC.
Survey, Design & Procurement
Contractor issues RFQs to equipment vendors.
Civil Works & Installation
RCC foundations cast, structures erected, panels installed.
Grid Synchronisation & Commissioning
25-year PPA begins from commissioning date.
Rajasthan: India's Most Active PM-KUSUM Market
Rajasthan has emerged as the single most active state for PM-KUSUM Component A.
| District / Division | DISCOM | Model | Winning Company (2024–25) |
|---|---|---|---|
| Jaisalmer | JVVNL Jodhpur | RESCO | Atri Sunpower Pvt Ltd |
| Jaisalmer (Lot-107) | JVVNL Jodhpur | RESCO | Lal Singh & Construction Co. |
| Barmer | JVVNL Jodhpur | RESCO | Bhagwana Ram Choudhary & Co. |
| Bikaner | JVVNL Jodhpur | RESCO | Bhawani Construction Company |
| Jalor | JVVNL Jodhpur | RESCO | Solar Pulse (Noida) |
| Sri Ganganagar | JVVNL / Jaipur | RESCO | Ganesham Energy Solutions |
| Sirohi (Abu Road) | AVVNL | EPC | Bhanwariya Infra Projects Pvt. Ltd. |
| Jodhpur City Divs | JVVNL Jodhpur | EPC | Ganesh Ram Patel |
Dozens of small-to-medium solar contractors across Rajasthan are actively executing PM-KUSUM projects.
Gujarat PM-KUSUM & Solar Pipeline
Gujarat leads in larger utility-scale projects. Khavda Renewable Energy Park is becoming one of the world's largest solar parks.
Gujarat also has an active rooftop solar pipeline through its Nagarpalika network.
| Project / Authority | Location | Contract Value | Awardee |
|---|---|---|---|
| 100 MW Solar (CIL Balance Work) | Banaskantha, Gujarat | ₹485 Cr | Kosol Energie Pvt Ltd |
| 300 MW Solar (CIL via GUVNL) | Kachchh, Gujarat | ₹1,217 Cr | NABARD (bidder) |
| 600 MW BOS (NTPC Khavda) | Kachchh, Gujarat | ₹136 Cr | Phaloudi Constructions |
| 100 MW BOS (GSECL Khavda) | Vadodara, Gujarat | ₹119 Cr | GHV India Pvt Ltd |
| 10 MW Floating Solar (ONGC) | Surat, Gujarat | ₹25.88 Cr | Purshotam Profiles Pvt Ltd |
| Rooftop Solar (Nagarpalika) | Anand, Gujarat | ₹1.40 Cr | SS Enterprise |
| Rooftop Solar (Nagarpalika) | Bharuch, Gujarat | ₹2.20 Cr | SS Enterprise |
Gujarat has 162 Nagarpalikas — many actively procuring rooftop solar through state schemes.
B2B Opportunities by Company Type
PM-KUSUM creates structured procurement demand across a wide range of product and service categories.
Solar Panel Supplier
Highest-value procurement item. Must be ALMM-listed.
₹50 L – ₹5 Cr per projectMounting Structure Maker
HDG fixed-tilt structures for ground-mounted plants.
₹15 L – ₹1.5 Cr per projectInverter Distributor
String inverters for most PM-KUSUM A plants.
₹10 L – ₹80 L per projectCable & Wire Vendor
DC solar cables and AC armoured cables.
₹5 L – ₹50 L per projectRMS / Monitoring Vendor
Mandatory for all PM-KUSUM A projects.
₹2 L – ₹15 L per projectEPC / Civil Contractor
Bid as prime RESCO developer or civil subcontractor.
₹50 L – ₹30 Cr per projectElectrical Panel Maker
AJB, DCDB, and ACDB panels required in every PM-KUSUM plant.
₹2 L – ₹20 L per projectSolar Pump Manufacturer
Component B targets 20 lakh solar pumps nationally.
₹1.5 L – ₹4 L per pumpLong-Term O&M Provider
RESCO companies need O&M partners for 25-year contracts.
₹2 L – ₹20 L per site/yearHow to Enter the PM-KUSUM Supply Chain
Here is a practical, step-by-step approach for B2B solar companies to start generating real orders.
Monitor award data weekly
Set up weekly reviews of PM-KUSUM project awards on BidAssist, GEM portal, and state DISCOM websites.
Build a target contractor database
Create a database of PM-KUSUM EPC contractors and RESCO developers.
Get ALMM-listed if applicable
ALMM registration is mandatory for any government project including PM-KUSUM.
Create a PM-KUSUM specific product datasheet
EPC contractors evaluating vendors need to confirm spec compliance quickly.
Offer regional stocking and fast delivery
Vendors who maintain regional stock consistently win orders over cheaper alternatives.
A well-timed call within the first two weeks of an AOC is dramatically more effective than cold outreach.
ALMM Compliance: The Gateway to Government Solar
The Approved List of Models and Manufacturers (ALMM) maintained by MNRE is the single most important compliance requirement.
| Requirement | Solar Panels (ALMM Part-I) | Inverters (ALMM Part-II) |
|---|---|---|
| Key certifications | IEC 61215, IEC 61730 | IEC 62109-1, IEC 62109-2, IEC 61727 |
| Domestic compliance | BIS CRS registration required | CEA grid interconnection standards |
| Factory inspection | MNRE inspection required | MNRE inspection required |
| Domestic content | Minimum value-add required | No domestic content mandate |
| Listing frequency | Updated quarterly by MNRE | Updated quarterly by MNRE |
| Consequence of non-listing | Cannot supply to any PM-KUSUM project | Cannot supply to any PM-KUSUM project |
If you are not on the ALMM, you will not receive orders.
Key Questions B2B Vendors Ask About PM-KUSUM
Q: Can small B2B companies participate in PM-KUSUM supply chains?
Yes. The scheme is implemented through hundreds of small projects awarded to regional EPC contractors.
Q: Do PM-KUSUM projects require domestic manufacturing?
For solar panels and inverters — yes. ALMM-listed domestic products are required.
Q: How do I find which RESCO companies are active in my target state?
Monitor BidAssist and GEM portal award notifications.
Q: What is the typical contract period for PM-KUSUM A projects?
Typically 270 days from date of award for RESCO projects.
Q: What is the minimum order quantity for panel supply to PM-KUSUM?
No formal MOQ, but a 1 MW plant requires approximately 1,600–1,800 panels.
Q: What happens to B2B vendors after a 25-year RESCO contract ends?
The plant is transferred to landowner or PPA is renegotiated.
