Bangalore Energy Supply Company Limited (Bescom) has launched tenders for a 500MW solar installation under the CM-SKY scheme. The project aims to leverage barren agricultural land to ensure uninterrupted power for farmers and boost rural income.

  • Bescom targets 500 MW of solar energy generation by December 2026.
  • Farmers can earn a base rental of ₹25,000 per acre per year from barren land.
  • The project is expected to attract investments totaling ₹10,500 crore by year-end.

Bengaluru: The Bangalore Energy Supply Company Limited (Bescom) has officially invited tenders for the installation of solar panels under the Mukya Mantri Saura Shakti Yojana, also known as the Chief Minister-Solar Agriculture Scheme (CM-SKY). The utility aims to integrate 500 MW of solar energy into its jurisdiction by December 2026.

Modelled after the central government's PM-KUSUM scheme, CM-SKY was first introduced in the state budget in March 2026 by former Chief Minister Siddaramaiah. The primary focus of the initiative is the solarisation of existing grid-connected agricultural pumpsets, reducing reliance on conventional power sources.

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Utilizing Barren Lands for Energy

According to N. Shivashankar, Managing Director of Bescom, the project will involve private companies entering into 28-year lease agreements with farmers. To maximize efficiency and minimize land waste, solar panels will be installed on agricultural land that is barren or unsuitable for cultivation, specifically those located near Karnataka Power Transmission Corporation Limited (KPTCL) sub-stations.

This arrangement allows farmers to monetize unproductive land, earning a base price of ₹25,000 per acre annually. This rate is subject to a 5% annual increase and may be higher depending on the land's proximity to the KPTCL infrastructure.

Why This Matters

BozokMedia analysis shows that this initiative is a strategic move to decentralize power generation. By shifting the financial burden of installation to private vendors and providing a steady income stream to farmers, the Karnataka government is creating a self-sustaining model. This not only stabilizes the rural grid but also mitigates the environmental impact of agricultural energy consumption.

"The transition to feeder-level solarisation is the most viable path to achieving 24/7 power security for the agricultural sector."

Allocation and Financial Framework

The state Energy Department has set a total target of 1,000 MW across five distribution companies. While Bescom holds the largest share at 500 MW, other allocations include Hescom (300 MW), CESC (100 MW), Mescom (40 MW), and Gescom (60 MW).

Feature PM-KUSUM C CM-SKY (Bescom)
Purchase Price per Unit ₹2.89 ₹3.19
Financial Subsidy Available Not Available
Primary Focus General Solar Generation Agri-Pumpset Solarisation

Bescom will purchase electricity from private vendors at ₹3.19 per unit. This premium rate is justified because, unlike the PM-KUSUM C scheme, CM-SKY does not provide financial assistance or subsidies to the vendors, placing the capital expenditure entirely on the private sector.

Did You Know?: Approximately three to four acres of land are required to generate one megawatt (1 MW) of solar power.

Frequently Asked Questions

Q1: How do farmers benefit from the CM-SKY scheme?
A: Farmers receive an annual lease payment of at least ₹25,000 per acre for their barren land and benefit from 7+ hours of uninterrupted daytime power for their pumpsets.

Q2: What is the expected investment for this project?
A: If the process continues uninterrupted, the scheme is expected to attract an investment of ₹10,500 crore by the end of this year.