Bangalore Energy Supply Company Limited (Bescom) has invited tenders for installation of solar panels under the new scheme Mukya Mantri Saura Shakti Yojana or Chief Minister-Solar Agriculture Scheme (CM-SKY). Bescom aims to generate 500 MW of solar energy by December 2026 within its jurisdiction.

Designed on the lines of PM-KUSUM, CM-SKY scheme was announced in the State budget by former Chief Minister Siddaramaiah in March 2026.

On barren lands

Under this scheme, private companies will focus on the solarisation of the existing grid-connected agricultural pumpsets. They can set up these solar panels preferably in agricultural land that is barren or not suitable for cultivation and closer to the sub-stations of Karnataka Power Transmission Corporation Limited (KPTCL).

N. Shivashankar, managing director, Bescom, explained, “They will enter into a lease agreement with farmers for 28 years as per the scheme for the installation of solar panels. The energy generated from these panels will be transmitted to the nearby KPTCL sub-stations, injected into IP feeders and finally into IP pumpsets. Instead of leaving the land barren and not being able to earn a penny from it, farmers can earn ₹25,000 from each acre for a year.”

“The base price for one acre set by Bescom is ₹25,000. But it depends on the private companies and the farmer. Companies can pay more depending on the proximity of the land to the KPTCL sub-station. This price is set to increase by 5% every year. Three to four acres of land are required for the installation of solar panels to generate one MW of solar power,” Mr. Shivashankar added.

500 MW by Bescom

According to the details shared by Bescom officials, the lowest bidder will be awarded the contract for nearly 25 years. While the Energy Department aims to generate 1000 MW of electricity through this process, around 500 MW is allocated to Bescom, 300MW is allocated to Hescom, 100 MW to CESC, 40 MW to Mescom and 60 MW to Gescom.

After the installation is completed and electricity is transmitted to the nearest sub-station, Bescom stated that the electricity will be purchased from private vendors at ₹3.19 per unit, which is slightly more in comparison to the money paid for per unit of electricity under PM-KUSUM C scheme.

At present, private vendors generating electricity are paid ₹2.89 per unit under the scheme. Another reason behind Bescom paying vendors more is that unlike PM-KUSUM C, CM-SKY doesn’t offer financial assistance or subsidies to the vendors.

Once the bidders are finalised, Bescom will also enter into a power purchase agreement with these companies for 25 years. According to the department, if the process is uninterrupted, it is likely to attract an investment of ₹10,500 crore by the end of this year under this scheme.

The official said, “We have targeted areas within Bescom’s jurisdiction where vendors have not yet opted for PM-KUSUM C as we don’t want friction between the private vendors. The scheme is cost-effective and there will be uninterrupted power supply to the farmers’ electrical pumpsets. During daytime, we aim to provide at least seven hours of uninterrupted power as the installation is done within a 10 km-range of KPTCL sub-stations.”

K.J. George, Energy Minister, said, “Our government is committed to providing uninterrupted, quality daytime power to farmers. To achieve this, the Chief Minister Solar Agriculture Scheme (CM-SKY) was announced in the 2026-27 budget. A 1,000 MW capacity feeder-level solarization project will be implemented across all five Escoms. Bescom has been allocated 500 MW and has already invited tenders to roll out the project soon.”

Published - August 17, 2026 08:01 pm IST