Karnataka Budget 2026: State Pushes Renewable Energy Through New KUSUM-C-Based Scheme

Karnataka Budget 2026: State Pushes Renewable Energy Through New KUSUM-C-Based Scheme

March 9, 2026

The Karnataka government has announced a major push for renewable energy in the 2026–27 state budget, introducing a new initiative called “Mukhya Mantri Saura Krishi Yojane.” The scheme is designed on the lines of the central government’s PM‑KUSUM Scheme Component C, which focuses on solarizing agricultural feeders to provide clean electricity for farming.

Under this initiative, the state plans to install 3,000 MW (3 GW) of solar power plants at substations operated by the Karnataka Power Transmission Corporation Limited (KPTCL). The projects will be developed using the Renewable Energy Service Company (RESCO) model, allowing private developers to build and operate the plants while supplying electricity to the grid. The total estimated investment for the program is about ₹10,500 crore.

The scheme aims to ensure reliable daytime electricity supply for agricultural pump sets, reducing farmers’ dependence on grid power at night and lowering the subsidy burden on electricity distribution companies. By integrating solar power directly at feeder level, the program also supports Karnataka’s broader renewable energy targets and reduces fossil-fuel-based power generation.

To support the growing share of renewable energy, the budget also includes plans to strengthen grid infrastructure and energy storage. The state will install 2,000 MWh of battery energy storage systems (BESS) at substations in Huliyur, Pavagada, and Kushtagi with an estimated investment of ₹3,400 crore, helping manage peak demand and stabilise the grid.

In addition, Karnataka will expand clean mobility infrastructure by setting up 1,250 public electric vehicle charging stations across the state under the PM-E Drive scheme, further supporting the transition toward electric transportation.

The budget also proposes expanding the state’s power transmission network by constructing 100 new substations in 2026–27 to meet rising electricity demand and integrate additional renewable capacity.

Overall, the renewable energy initiatives announced in the Karnataka Budget 2026 aim to accelerate the adoption of solar power in agriculture, improve grid stability through energy storage, and expand EV charging infrastructure. These measures are expected to strengthen the state’s clean energy transition while ensuring reliable power supply for farmers and supporting sustainable economic growth.