Last Updated on January 7, 2026 by Author
The implementation of solar power projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme in Maharashtra is facing delays due to rising land leasing costs, creating challenges for developers and slowing execution timelines.
While Maharashtra continues to be one of the most active states under the PM-KUSUM programme, increasing land-related expenses and infrastructure constraints are affecting project viability.
PM-KUSUM aims to promote solarisation in the agricultural sector by enabling farmers to lease land for decentralised and feeder-level solar power projects. These installations are typically developed on barren, fallow, or underutilised agricultural land, allowing farmers to earn additional income while supporting clean energy generation. However, developers working in Maharashtra report that land leasing rates have increased sharply as demand for suitable land has grown.
Industry estimates suggest that land leasing costs in several high-potential solar districts have risen by around 25–30%, particularly for parcels located close to substations and existing grid infrastructure. Competition for such land has intensified, resulting in longer negotiations with landowners and delays in finalising project sites. Developers note that land identification and leasing now take significantly more time than initially anticipated.
Maharashtra has approved a substantial number of projects under PM-KUSUM Component C, which focuses on feeder-level solarisation. Despite strong approvals, a sizeable portion of these projects has yet to progress to construction stages. Unresolved land leasing issues and delays in documentation are cited as key reasons for projects remaining stalled at pre-execution phases.
Rising land costs have also led to overall project cost escalation. In some districts, land purchase prices are reported to range between ₹5 lakh and ₹15 lakh per acre, while lease-based models have become increasingly expensive. Developers estimate that land-related expenses now add approximately 5–7% to total project costs, affecting financial returns and increasing pressure on project economics.
Industry stakeholders emphasise that coordinated efforts by state authorities are required to streamline land leasing processes, improve clarity around land-use norms, and accelerate grid infrastructure upgrades. Addressing these issues will be crucial for Maharashtra to sustain momentum under the PM-KUSUM scheme and meet its renewable energy targets.
