Union Cabinet Approves 'Green Energy Corridor Phase-III' Scheme with Investment of ₹1.86 Lakh Crore
The Cabinet, chaired by Prime Minister Modi, has approved the GEC-III scheme to strengthen intra-state transmission systems and install 50 GWh of battery energy storage.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has granted its approval for the 'Green Energy Corridor Phase-III' (GEC-III) scheme. The primary objective of this initiative is to empower India's intra-state transmission system (InSTS), enabling the transport of up to 135 gigawatts (GW) of renewable energy across various states and union territories.
To enhance grid flexibility and address power supply constraints—such as congestion and peak-hour curtailments—the scheme provides for the installation of 50 GWh of Battery Energy Storage Systems (BESS). These storage systems will be deployed at the level of renewable energy producers or other critical locations to ensure that demand can be met even during periods when solar energy is unavailable.
According to the financial details of the project, the total cost of the entire scheme is ₹1,86,405 crore, with a completion target set for the financial year 2032-33. Out of this amount, ₹1,36,378 crore has been allocated for the development of the intra-state transmission system and ₹50,000 crore for the Battery Energy Storage Systems (BESS). The government will provide Central Financial Assistance (CFA) amounting to ₹54,082 crore for this project, which will help reduce transmission charges and keep electricity costs controlled.
Regarding the implementation strategy, all greenfield projects under the InSTS will be executed through Tariff-Based Competitive Bidding (TBCB). Meanwhile, brownfield upgrades and network strengthening work will be carried out on a Cost Plus Basis (CPB). In this process, State Transmission Utilities will act as the implementing agencies, and Transmission Service Providers (TSP) will participate under the Build-Own-Operate-Maintain (BOOM) model.
This scheme will be instrumental in helping India achieve its target of installing 900 GW of non-fossil capacity by 2035. Additionally, it will enhance energy security, reduce the carbon footprint, and create large-scale direct and indirect employment opportunities in the manufacturing, construction, and energy sectors. Specifically, new skilled employment opportunities will be generated in the domestic energy storage industry and the field of grid management.
