Union Minister of Information and Broadcasting Ashwini Vaishnaw speaks during a cabinet briefing, in New Delhi, Wednesday, Sept. 30, 2026. (PTI Photo/Salman Ali)

New Delhi: The Union Cabinet on Wednesday approved Rs 1.86 lakh crore green energy corridors Phase III scheme to evacuate renewable energy with battery energy storage. The scheme aims to develop an intra-state transmission system with a battery energy storage ecosystem, which will help in achieving the target of 900 GW installed non-fossil capacity by 2035, according to the government.

Announcing the decision after the cabinet meeting, Union minister Ashwini Vaisashhnaw said that adequate transmission capacity would be critical as renewable energy rises with the government seeking to ensure that grid infrastructure comes up ahead of new renewable projects. However, this is significant in view of India’s ambitious target of 500 GW of renewable energy capacity by 2030.

“The Union Cabinet today approved the ‘Green Energy Corridor Phase-III’ scheme with an outlay of Rs 1.86 lakh crore to set up an intra-state transmission system with battery storage to evacuate 135 GW of renewable energy. “This initiative will strengthen India's Intra-State Transmission System (InSTS) to enable evacuation of up to 135 gigawatt (GW) of renewable energy across States/ Union Territories,” an official statement said.

As per the government, the scheme also provides for deployment of 50 GWh of battery energy storage systems (BESS) at the renewable energy (RE) developer/generator end or any other location of importance for grid flexibility to address intermittency, congestion, peak-hour curtailment and meet non-solar hour demand. “The scheme will facilitate grid integration and power evacuation within the States/UTs of India,” the statement said.

The scheme is targeted to be set up by FY 2032-33 with total project outlay of Rs 1,86,405 crore, comprising Rs 1,36,378 crore for the development of Intra-State Transmission Systems (InSTS) under GEC-III, Rs 50,000 crore for 50 GWh of Battery Energy Storage Systems (BESS). The scheme also involves a total central financial support of Rs 54,082 crore.

“The central financial assistance (CFA) will help in offsetting the Intra-State transmission charges and thus keep the power costs down. Thus, the government support will ultimately benefit the end users, the citizens of India. All greenfield projects under the InSTS component will be implemented through tariff based competitive bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be executed under cost plus basis (CPB),” the government said.

“The scheme will help in achieving the target of 900-GW installed non-fossil capacity by 2035. However, the scheme will also contribute to long-term energy security of the country and promote ecologically sustainable growth by reducing carbon footprint. It will generate large direct and indirect employment in the power sector, manufacturing, and construction industries,” it added.


Tags: