Rajasthan Budget FY2026-27: ₹2,900 Crore Allocated for Solar Infrastructure and Grid Stability

On February 11, 2026, Deputy Chief Minister and Finance Minister Diya Kumari presented the Rajasthan state budget for FY2026-27, earmarking ₹2,900 Crore to develop 4,830 MW of solar park capacity and modernize the state’s power transmission network. The allocation addresses the requirement for increased renewable generation while prioritizing the technical stabilization of the provincial grid.

Solar Park Development and Capacity Expansion

The Rajasthan government is utilizing joint venture models to expand utility-scale solar generation. The budget identifies specific sites for development in high-radiation zones:

• Bikaner District: Mehrasar–Dinarsar–Barala and Sawaisar–Karnisar–Bhatiyan–Bikoloi.
• Jaisalmer District: Ragha–Sewda.

A central component of this expansion is the Pugal Solar Park in Bikaner. According to the Request for Selection (RfS) RSDCL/TN-03/2025-26, the facility involves the selection of developers for 2,450 MW of Solar PV capacity paired with 1,600 MW / 6,400 MWh of Energy Storage Systems (ESS). This tender constitutes a major portion of the state’s strategy to manage intermittent generation. While the state energy department’s internal assessment initially set a broader installation target of 6,000 MWh for Battery Energy Storage Systems (BESS), the Pugal tender specifically secures a 6,400 MWh capacity to mitigate power wastage and curtailment.

Grid Strengthening and Transmission Infrastructure

Infrastructure upgrades target systemic issues identified in an energy department assessment covering April 2024 to September 2025. This report cited reactive power instability and the inability to maintain lower technical minimums for thermal units as primary drivers of renewable energy curtailment. To resolve these bottlenecks, the budget funds the following technical upgrades:

• High-Voltage Substations: 19 new grid substations at the 220 kV and 132 kV levels.
• Distribution Substations: 110 new 33 kV substations.

These assets are positioned to improve reactive-power management and ensure the grid can absorb maximum produced power during periods of low daytime demand.

Grid Management and Cybersecurity Modernization

The budget provides for the modernization of the State Load Dispatch Centre (SLDC) to enhance operational oversight. Planned technological integrations include:

• Operations Centres: Establishment of a dedicated Security Operations Centre (SOC) and a Network Operations Centre (NOC).
• Artificial Intelligence: Deployment of AI-enabled systems to automate grid load balancing and enhance cyber resilience against infrastructure threats.

Manufacturing Incentives and Workforce Development

The state is incentivizing the renewable energy supply chain through the Rajasthan Investment Promotion Scheme 2024 (RIPS-2024). This policy provides specific incentives for integrated solar cell and module manufacturing units to support vertical supply chain localization.

To support the operational requirements of the clean energy sector, the state will establish an “energy transition skilling cluster.” This initiative focuses on building a specialized workforce trained in the technical maintenance of renewable assets and storage systems.

Associated Agricultural and Social Provisions

The FY2026-27 budget integrates solar infrastructure into agricultural and civic sectors:

• PM-KUSUM (Component-B): ₹400.13 Crore is allocated for the installation of 50,000 solar-powered pumps for agricultural use.
• Social Infrastructure: The budget mandates solar electricity connections for several thousand Anganwadi centres and large-scale solar-powered streetlight installations in urban centers.

Data Reference Table

The following table summarizes the primary technical and financial metrics for the FY2026-27 energy sector allocations: