THEBUSINESSBYTES
BUREAU
NEW
DELHI, SEPTEMBER 30, 2026
The Union Cabinet
chaired by Prime Minister Narendra Modi has approved the Green Energy Corridor
Phase-III (GEC-III) scheme with a total outlay of Rs 1,86,405 crore to
strengthen intra-state power transmission networks and facilitate evacuation of
up to 135 GW of renewable energy across states and Union Territories.
The scheme, which is
targeted for completion by 2032-33, includes an allocation of Rs 1,36,378 crore
for development of Intra-State Transmission Systems (InSTS) and Rs 50,000 crore
for deployment of 50 GWh of Battery Energy Storage Systems (BESS).
The government will
provide Central Financial Support of Rs 54,082 crore under the scheme. The
financial assistance is aimed at offsetting intra-state transmission charges
and, according to the government, helping contain the cost of electricity for
end users.
The BESS capacity
will be deployed at renewable energy developer or generator locations, as well
as other strategically important points in the power grid. The storage systems
are expected to improve grid flexibility by addressing challenges arising from
the intermittent nature of renewable power, transmission congestion and
curtailment during peak periods.
The storage capacity
will also support electricity demand during non-solar hours, enabling better
utilisation of renewable energy and improving the reliability of power supply.
The GEC-III scheme is
designed to strengthen power evacuation within states and Union Territories and
facilitate greater integration of renewable energy into the national power
grid.
All greenfield
projects under the InSTS component will be implemented through Tariff Based
Competitive Bidding (TBCB), while brownfield upgrades and network-strengthening
works will be undertaken on a Cost Plus Basis (CPB).
State Transmission
Utilities will serve as the overall implementing agencies. Transmission Service
Providers will participate in projects awarded through the TBCB mechanism under
the Build-Own-Operate-Maintain (BOOM) model.
The government said
the scheme will support India's target of achieving 900 GW of installed
non-fossil fuel-based capacity by 2035, while strengthening long-term energy
security and promoting sustainable economic growth through a reduction in the
carbon footprint.
The large-scale expansion of transmission infrastructure and energy storage is also expected to create direct and indirect employment across the power, manufacturing and construction sectors.
In addition, manufacturing and deployment of BESS is expected to generate employment opportunities in the domestic energy storage industry, while the expanded grid infrastructure will create long-term skilled jobs in areas such as operations, maintenance and grid management across participating states.
