Rs 17,300 Crore Push To Boost India's Energy And Critical Mineral Self-Reliance: ICICI Securities

New Delhi, Nov 10 (KNN) India's efforts to reduce dependence on imported energy and critical minerals are set to receive a boost following the Centre's approval of two schemes worth a combined Rs 17,300 crore, according to an ICICI Securities report.

The Union Cabinet has approved Rs 14,500 crore in viability gap funding (VGF) for 92 GWh of grid-scale energy storage capacity and Rs 2,800 crore in capital expenditure support for domestic critical mineral processing.

The brokerage said the measures assume greater significance amid geopolitical uncertainties and the energy crisis triggered by the West Asia conflict, which have exposed vulnerabilities in global energy and mineral supply chains.

Rs 14,500 Crore Scheme To Expand Energy Storage Capacity

The energy storage scheme aims to add 92 GWh of grid-scale storage capacity between FY27 and FY31, involving an estimated investment of Rs 97,600 crore, reported ANI

The planned capacity includes 60 GWh of pumped hydro storage, 30 GWh of battery energy storage systems (BESS) and 2 GWh of emerging storage technologies.

The addition would be equivalent to around 170 per cent of India's existing storage capacity and help meet the projected requirement of 411 GWh by FY32.

The report said the scheme could boost renewable energy integration, improve grid stability and ensure reliable round-the-clock power supply. A minimum domestic content requirement of 40 per cent for battery storage projects is also expected to support local manufacturing.

Critical Mineral Scheme Targets Domestic Processing Capacity

The Rs 2,800-crore capital expenditure support scheme aims to establish four domestic processing facilities for lithium and nickel, with cobalt recovered as a by-product of nickel production.

The plan includes two lithium plants with a minimum capacity of 30,000 tonnes each and two nickel plants with a minimum capacity of 50,000 tonnes each.

Eligible investments will receive a 30 per cent capital subsidy, capped at Rs 500 crore per lithium beneficiary and Rs 900 crore per nickel beneficiary.

ICICI Securities said the initiative could boost domestic value addition and reduce import dependence in electric mobility, battery storage, electronics, defence and specialty steel.

Timely Implementation Key To Achieving Energy Security Goals

India's total final energy consumption stood at 25,480 petajoules in FY25, with oil products accounting for 40 per cent and natural gas 9 per cent, the report noted.

Electricity consumption reached around 16.23 lakh GWh in FY25, growing at a compound annual growth rate (CAGR) of 6 per cent between FY16 and FY25.

The brokerage said both measures could strengthen energy and critical mineral self-reliance, but their success would depend on timely implementation, reliable supplies of critical mineral ores and intermediates, and the commissioning of energy storage projects to reduce import dependence.

(KNN Bureau)