Cabinet Clears Rs 1.86 Lakh Crore Green Energy Corridor-III to Expand Intra-State Transmission, Add 50 GWh Battery Storage

New Delhi, Oct 1 (KNN) The Union Cabinet, chaired by Prime Minister Modi, has approved the Green Energy Corridor Phase-III (GEC-III) scheme to strengthen India’s intra-state transmission network and facilitate evacuation of up to 135 GW of renewable energy across states and Union Territories.

The scheme will also support deployment of 50 GWh of Battery Energy Storage Systems (BESS) at renewable energy generation sites or other strategic grid locations to address intermittency, congestion, peak-hour curtailment and demand during non-solar hours.

Rs 1.86 Lakh Crore Project Outlay

The scheme is targeted for completion by FY2032-33 with a total outlay of Rs 1,86,405 crore. This includes Rs 1,36,378 crore for intra-state transmission systems and Rs 50,000 crore for 50 GWh of BESS.

The Centre will provide Rs 54,082 crore in financial support, which is expected to offset intra-state transmission charges and help contain power costs for consumers.

Competitive Bidding For Greenfield Projects

All greenfield projects under the intra-state transmission component will be implemented through Tariff Based Competitive Bidding (TBCB), while brownfield upgrades and network-strengthening works will follow the Cost Plus Basis (CPB).

State Transmission Utilities will serve as the overall implementing agencies, while Transmission Service Providers will participate under TBCB through a Build-Own-Operate-Maintain (BOOM) model.

The scheme is expected to support India’s target of 900 GW of installed non-fossil fuel capacity by 2035, while strengthening long-term energy security and facilitating renewable power integration.

The government said the programme will also support employment across the power, manufacturing and construction sectors, with additional opportunities expected in domestic BESS manufacturing, deployment, operations, maintenance and grid management.

(KNN Bureau)