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 the Ministry of New and Renewable Energy (MNRE) in 2019 and substantially expanded since, PM-KUSUM is one of the most consequential solar procurement programmes in the world by installed capacity target. The scheme aims to add 30.8 GW of solar capacity through three distinct components, transforming how electricity reaches India's 600+ million rural population.
For B2B solar companies — whether you manufacture panels, supply mounting structures, fabricate junction boxes, or provide EPC services — PM-KUSUM is not a policy document to file away. It is an active procurement pipeline generating hundreds of tenders and thousands of crores in equipment orders every quarter, particularly in Rajasthan, Gujarat, Madhya Pradesh, and Uttar Pradesh.
“PM-KUSUM is the single largest driver of decentralised solar procurement in India. Every village-level solar plant requires the same components as a utility-scale project — just at a smaller scale, multiplied across hundreds of locations.”
— B2B Solar Research, 2025–26
The Three Components of PM-KUSUM
PM-KUSUM is structured into three distinct components — A, B, and C — each targeting a different segment of rural solar deployment. Each creates different supply chain dynamics for B2B vendors.
Component A drives the largest individual project values (₹2 Cr – ₹30 Cr per cluster) and requires the most complete BOS procurement — panels, structures, inverters, cables, RMS, and civil works. Component B creates high-volume, smaller-value orders for solar pump manufacturers. Most B2B equipment vendors will find their largest opportunities in Component A.
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 to the landowner or government body — recovering its investment by selling electricity to the DISCOM at a fixed tariff over a 25-year Power Purchase Agreement (PPA).
This is why many PM-KUSUM tenders in Rajasthan show a contract amount of ₹0 (Tariff-based RESCO). The government is not paying for the plant — it is guaranteeing a purchase price, which enables the RESCO developer to raise private financing.
| 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 (e.g. ₹25 Cr) | Tariff per unit (e.g. ₹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 |
Because a RESCO company owns and operates the plant for 25 years, they evaluate equipment on long-term reliability and warranty terms — not just upfront price. A panel manufacturer offering a 30-year linear performance warranty will consistently beat a cheaper competitor with a 10-year warranty. Adjust your B2B pitch and technical documentation accordingly.
Key Buyers & Awarding Authorities
PM-KUSUM projects are awarded by state DISCOMs, nodal agencies, and renewable energy departments. Knowing who awards contracts in your target state tells you which EPC companies to approach — because award data reveals who just won a project and is about to start procurement.
The most active PM-KUSUM Component A authority in India. Awarded dozens of RESCO contracts in Jaisalmer, Barmer, Bikaner, Jalor, and Jodhpur in 2024–25. Real contractors from your Excel data won here.
Gujarat's state utility awards solar capacity under competitive bidding. Coal India's 300 MW was procured through GUVNL. Also implements PM-KUSUM for farmer and feeder solarisation statewide.
Covers central Rajasthan. Awarded EPC contracts in Sirohi (Abu Road & Reodar Divisions). Bhanwariya Infra Projects won a KUSUM EPC contract here worth ₹270-day delivery in August 2025.
SECI and NTPC implement PM-KUSUM aggregation schemes on behalf of multiple states, pooling demand for larger competitive bids. Great entry point for larger-scale B2B suppliers.
UP has a large pipeline of Component A and B projects. Active in Gorakhpur, Lucknow, and western UP districts. Brisk Associates won a solar+infrastructure contract worth ₹1.9 Cr in Gorakhpur.
Handles eastern Rajasthan PM-KUSUM A, including Sri Ganganagar. Ganesham Energy Solutions (Jaipur) won a RESCO contract here in April 2025. Both EPC and RESCO models are used.
Materials & Components Procured
Every PM-KUSUM Component A project requires a standard set of materials and components — virtually identical across all states. This consistency makes PM-KUSUM an excellent B2B market: once you qualify for one project, your specifications match dozens more. The list below is derived directly from actual project award data across Rajasthan and Gujarat.
Remote Monitoring Systems (RMS) are a non-negotiable MNRE requirement. The RMS must transmit real-time plant performance data to both the DISCOM and state nodal agency. This creates a recurring B2B opportunity for IoT hardware vendors, data logger manufacturers, and monitoring software providers. Every project needs one — and they require ongoing maintenance and data plans across the full 25-year RESCO term.
How a PM-KUSUM Project Flows: Tender to Commissioning
Understanding the project lifecycle helps B2B vendors time their engagement correctly. The window between award and procurement is often just 4–8 weeks — vendors who are pre-qualified must be ready to respond immediately when a contract is signed.
Tender Issuance
DISCOM or state nodal agency publishes tender specifying capacity, tariff ceiling (RESCO), location, and technical requirements on BidAssist, GEM portal, and DISCOM website.
Technical & Financial Bid Submission
EPC contractors or RESCO developers submit bids. For RESCO, lowest tariff per kWh from a technically compliant bidder wins. For EPC, lowest lump sum project cost.
Award of Contract (AOC)
Winning company receives AOC — the critical trigger for B2B vendors to initiate contact. The contractor has confirmed revenue and begins procurement planning within days of signing.
Survey, Design & Procurement
Contractor conducts detailed site survey, finalises plant layout, and issues RFQs to equipment vendors. For a 1–2 MW PM-KUSUM plant, procurement typically takes 4–10 weeks.
Civil Works & Installation
RCC foundations cast, mounting structures erected, panels installed, electrical systems connected. Construction typically takes 90–150 days of the 270-day contract period.
Grid Synchronisation & Commissioning
Plant synchronised with DISCOM grid, performance ratio (PR) test conducted, plant handed over for commercial operation. The 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 — driven by among the world's highest solar irradiance, vast tracts of barren land, a supportive state government, and DISCOMs actively pursuing tariff-based RESCO contracts to reduce their agricultural power subsidy burden.
| 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 |
What this data tells B2B vendors is clear: there are dozens of small-to-medium solar contractors across Rajasthan actively executing PM-KUSUM projects and sourcing equipment. The procurement decisions are being made by company founders and project managers — not by large corporate procurement departments. Relationship-based sales works extremely well in this segment.
Gujarat PM-KUSUM & Solar Pipeline
Gujarat presents a different but equally substantial B2B opportunity. While Rajasthan leads in PM-KUSUM A RESCO volume, Gujarat leads in larger utility-scale projects using the same equipment stack. The Khavda Renewable Energy Park in Kutch is becoming one of the world's largest solar parks — GSECL, NTPC, and Coal India have all awarded large EPC contracts there, with individual awards reaching ₹1,217 Cr.
Gujarat also has an active rooftop solar pipeline through its Nagarpalika (municipal body) network. In 2024–25, Anklav Nagarpalika (Anand), Santrampur Nagarpalika (Mahisagar), Ranavav Nagarpalika (Porbandar), and others awarded rooftop solar contracts in the ₹1.4 Cr – ₹2.2 Cr range, representing consistent repeat demand for rooftop solar vendors.
| 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 |
Individual Nagarpalika contracts are small (₹1–3 Cr), but Gujarat has 162 Nagarpalikas — many actively procuring rooftop solar through state schemes linked to PM-KUSUM. A vendor empanelled as a preferred supplier to 20–30 Nagarpalikas has a predictable, recurring revenue pipeline that is far less competitive than utility-scale bidding.
B2B Opportunities by Company Type
PM-KUSUM creates structured procurement demand across a wide range of product and service categories. Here is how different types of B2B companies can position themselves within the PM-KUSUM supply chain — with realistic deal size estimates based on actual project data.
Solar Panel Supplier
Highest-value procurement item. Must be ALMM-listed. Mono-PERC 550–575 Wp is the dominant spec. Target RESCO developers and EPC contractors immediately after award.
₹50 L – ₹5 Cr per projectMounting Structure Maker
HDG fixed-tilt structures for ground-mounted plants. High volume, repeat orders. Regional fabricators with fast delivery outcompete distant suppliers.
₹15 L – ₹1.5 Cr per projectInverter Distributor
String inverters for most PM-KUSUM A plants (up to 2 MW). Must be ALMM-listed. DISCOMs specify remote monitoring capability as a built-in requirement.
₹10 L – ₹80 L per projectCable & Wire Vendor
DC solar cables and AC armoured cables in large quantities. TUV-certified DC cables mandatory. Regional distributors with stock availability win on delivery speed.
₹5 L – ₹50 L per projectRMS / Monitoring Vendor
Mandatory for all PM-KUSUM A projects. Vendors offering turnkey RMS (hardware + SIM + cloud) with MNRE-compliant data formats have very little competition.
₹2 L – ₹15 L per projectEPC / Civil Contractor
Bid as a prime RESCO developer or civil subcontractor. Regional civil contractors with earthworks and foundation experience are in high demand across Rajasthan and Gujarat.
₹50 L – ₹30 Cr per projectElectrical Panel Maker
AJB, DCDB, and ACDB panels required in every PM-KUSUM plant. IP65-rated enclosures with MNRE-compliant specs. Local manufacturers can offer 2–3 week lead times.
₹2 L – ₹20 L per projectSolar Pump Manufacturer
Component B of PM-KUSUM targets 20 lakh solar pumps nationally. State nodal agencies award bulk pump supply contracts. This is a high-volume, government-subsidised market.
₹1.5 L – ₹4 L per pumpLong-Term O&M Provider
RESCO companies need O&M partners for 25-year contracts. Module cleaning, inverter maintenance, spares supply, and remote monitoring management are all sub-contracted.
₹2 L – ₹20 L per site/yearHow to Enter the PM-KUSUM Supply Chain
Knowing PM-KUSUM is a large market is not enough. Here is a practical, step-by-step approach for B2B solar companies to start generating real orders — based on what actually works.
Monitor award data weekly
Set up weekly reviews of PM-KUSUM project awards on BidAssist, GEM portal, and state DISCOM websites. When a contract is awarded, you have a 4–8 week window before procurement closes. Award data gives you the contractor name, company contact, location, and scope — everything for a targeted outreach call.
Build a target contractor database
Create a database of PM-KUSUM EPC contractors and RESCO developers who have won projects in your target states. Include company name, website, HO address, project location, and contract value. This becomes your primary B2B prospecting list — constantly updated as new awards come in.
Get ALMM-listed if applicable
If you manufacture panels or inverters, ALMM registration is mandatory for any government project including PM-KUSUM. Without it, you cannot supply regardless of price or quality. ALMM requires IEC certifications, BIS compliance, and MNRE factory inspection — treat it as a non-negotiable prerequisite.
Create a PM-KUSUM specific product datasheet
EPC contractors evaluating vendors need to confirm spec compliance quickly. Create a single-page datasheet mapping your product specs to PM-KUSUM requirements — Wp rating, temperature coefficient, mounting hole spacing, IP rating. This removes friction from the procurement decision.
Offer regional stocking and fast delivery
PM-KUSUM projects are typically in rural Rajasthan, Gujarat, or UP — far from major industrial hubs. Contractors in Barmer or Jaisalmer cannot wait 8 weeks. Vendors who maintain regional stock or offer 2–3 week delivery to remote sites consistently win orders over cheaper alternatives.
Award data is public. The contractors who won PM-KUSUM projects last month are actively sourcing equipment right now. A well-timed call — referencing the specific project, location, and capacity — within the first two weeks of an AOC is dramatically more effective than cold outreach to a contractor with no active project in hand.
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 for B2B vendors supplying solar panels and inverters to government projects — including all PM-KUSUM projects above 10 kW.
| 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 |
EPC contractors and RESCO developers who use non-ALMM panels or inverters in PM-KUSUM projects risk contract termination, disqualification from future tenders, and recovery of government subsidies already disbursed. No matter how competitive your pricing, if you are not on the ALMM, you will not receive orders. For panel and inverter manufacturers, ALMM listing must be treated as a non-negotiable prerequisite — begin the process immediately if not already done.
Key Questions B2B Vendors Ask About PM-KUSUM
Q: Can small B2B companies participate in PM-KUSUM supply chains?
Yes — and this is one of PM-KUSUM's most important characteristics for the B2B market. Because the scheme is implemented through hundreds of small (1–5 MW) projects awarded to regional EPC contractors and RESCO developers, small and medium vendors can compete very effectively. A regional cable manufacturer or local mounting structure fabricator can win orders from PM-KUSUM contractors in ways that would be impossible in large PSU utility-scale procurement.
Q: Do PM-KUSUM projects require domestic manufacturing?
For solar panels and inverters — yes. ALMM-listed domestic products are required. For other components (cables, junction boxes, earthing, mounting structures), there is no mandatory domestic sourcing requirement, though DISCOMs often prefer vendors with Indian manufacturing in their evaluation criteria.
Q: How do I find which RESCO companies are active in my target state?
Monitor BidAssist and GEM portal award notifications for PM-KUSUM tenders in your target state. Award data includes the contractor's company name, website, registered office address, and specific project details. BidAssist archives historical award data, allowing you to build a complete list of all companies that have won PM-KUSUM projects in a state over the past 2–3 years.
Q: What is the typical contract period for PM-KUSUM A projects?
The construction period is typically 270 days from the date of award for RESCO projects. EPC-mode projects may have shorter construction periods (120–180 days) depending on capacity. The overall project tenure — including O&M — is 25 years under RESCO and 5 years under most government-funded EPC models.
Q: What is the minimum order quantity for panel supply to PM-KUSUM?
There is no formal MOQ set by MNRE, but practically a 1 MW PM-KUSUM plant requires approximately 1,600–1,800 panels (at 550–575 Wp). For small panel manufacturers, a single PM-KUSUM project can represent 3–6 months of production capacity — making each award a significant B2B opportunity.
Q: What happens to B2B vendors after a 25-year RESCO contract ends?
At the end of the 25-year PPA, the solar plant is typically transferred to the landowner or the PPA is renegotiated. For B2B vendors, the end of the RESCO period creates potential equipment replacement cycles. More immediately, the 25-year O&M obligation creates recurring demand for replacement modules, inverter parts, cable repair kits, and monitoring upgrades throughout the contract period.
