Bescom invites tenders for 500MW solar project under CM-SKY
Bescom has called for bids to install 500MW of solar capacity under the CM-SKY scheme, aiming for completion by December 2026. The scheme focuses on solarising grid-connected agricultural pumpsets on agricultural land near KPTCL substations.
Key takeaways
- Bescom is inviting bids to install 500 MW of solar capacity under the CM-SKY scheme.
- The project targets completion by December 2026 within Bescom’s jurisdiction.
- Contractors will lease land from farmers for 28 years to install solar panels near KPTCL substations, feeding electricity into IP feeders and pumpsets.
- Energy will be purchased at ₹3.19 per unit under CM-SKY, higher than the PM-KUSUM C rate, with a 25-year PPA.
What Happened
Bangalore Energy Supply Company Limited (Bescom) issued a tender for a 500 MW solar installation under the Mukya Mantri Saura Shakti Yojana (CM-SKY). The plan aims to generate 500 MW of solar energy within Bescom’s jurisdiction by December 2026. The scheme centers on solarising existing grid-connected agricultural pumpsets, ideally on barren or non-arable land near KPTCL sub-stations. Contractors will enter 28-year lease agreements with farmers for solar panel installations, with generated power transmitted to nearby KPTCL sub-stations and then to IP feeders and pumpsets.
Bescom’s details show a district-level breakdown of the 500 MW program across six districts, totaling 54 feasibility entries and 1,49,934 IP pumpsets connected to 438 IP feeders. The base land price set by Bescom is ₹25,000 per acre, subject to adjustment by proximity to sub-stations and private bids. Each 1 MW of capacity typically requires three to four acres of land for solar panels, according to Bescom officials. The project envisions a lowest-bidder award for roughly 25 years, with energy purchases from private vendors at ₹3.19 per unit—higher than the ₹2.89 per unit paid under PM-KUSUM C—since CM-SKY does not provide subsidies or financial assistance to vendors. A power purchase agreement spanning 25 years is planned with selected bidders.
Why It Matters
The CM-SKY program represents a shift toward solarising agricultural infrastructure by leveraging private sector deployment on non-cultivable land, potentially expanding rural solar adoption and land-use economics for farmers. The higher per-unit buy price and lack of subsidies indicate a distinct financial model from PM-KUSUM C, with reliance on long-term PPAs and private investment estimated at ₹10,500 crore if the process proceeds without major disruption.
Background
CM-SKY, announced in March 2026 in the state budget by a former Chief Minister, is modeled on PM-KUSUM and is designed to advance solar energy deployment near agricultural pumpsets. The scheme allocates portions of target capacity to different electricity distribution companies within Karnataka, with Bescom assigned 500 MW, Hescom 300 MW, CESC 100 MW, Mescom 40 MW, and Gescom 60 MW, totaling 1,000 MW across the state’s distribution network.
Key Facts
- Bescom invites tenders for a 500 MW solar project under CM-SKY.
- Target completion by December 2026 within Bescom’s jurisdiction.
- Scheme focuses on solarising grid-connected agricultural pumpsets on nearby land.
- Lease terms: 28 years with farmers for solar panel installations.
- Power generated to be transmitted to nearby KPTCL sub-stations, then to IP feeders and pumpsets.
- Districts involved: Bangalore Rural, Chikkaballapura, Chitradurga, Davanagere, Kolar, Ramanagara, Tumakuru (total 54 feasibility entries, 500.08 MW).
- Base land price: ₹25,000 per acre, adjustable by proximity to substations; 3–4 acres needed per 1 MW.
- Project span: nearly 25-year PPAs with private vendors; energy price at ₹3.19 per unit (versus ₹2.89 under PM-KUSUM C).
- Investment potential: up to ₹10,500 crore if implemented uninterrupted.
- CM-SKY target across EScoms totals 1,000 MW, with Bescom assigned 500 MW.
What Happens Next
After bids are awarded, Bescom will enter into power purchase agreements with selected companies for 25 years. The deployment plan envisions energising the nearest sub-stations and ensuring daytime supply to farmers for at least seven hours when installations are near KPTCL sub-stations, provided there are no interruptions.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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