Written by PPL Newsroom• October 5, 2026• 12:04 pm• Policy

Cabinet clears Rs 1.86 lakh crore PM-DHARA scheme to carry 135 GW of clean power

The scheme funds state transmission lines and 50 GWh of battery storage by 2032-33, aiming to cut curtailment and keep power costs down.

The Union Cabinet on Wednesday, 30 September, approved the Rs 1.86 lakh crore PM-DHARA scheme, which will build state-level transmission networks and battery storage so that more renewable electricity can reach consumers. The scheme targets a long-standing bottleneck: transmission constraints remain a challenge for India’s renewable energy sector.

What the scheme covers

PM-DHARA stands for PM-Developing Harmonized and Accelerated Renewable-energy Access. The total outlay is Rs 1,86,405 crore, to be spent by 2032-33. Of this, Rs 1,36,378 crore is for intra-state transmission systems under Green Energy Corridor-III, and Rs 50,000 crore is for 50 GWh of battery energy storage. The Centre will provide Rs 54,082 crore as central financial support. According to the government, this support will offset intra-state transmission charges and help keep power costs down for end users.

In physical terms, the scheme is to add 51,126 circuit kilometres of transmission lines and 2,28,903 megavolt-amperes of transformation capacity. Together, the new capacity is meant to enable evacuation of up to 135 GW of renewable energy across States and Union Territories. “Evacuation” here means moving power from where solar and wind plants generate it into the grid.

The batteries have a separate job. They are meant to improve grid flexibility and address intermittency, congestion, peak-hour curtailment and demand during non-solar hours. In everyday terms, they store midday solar power so it can be used in the evening.

Why transmission is the sticking point

Lines take longer to build than the plants they serve. A government presentation notes that transmission takes four years to build, while a renewable project takes two. When lines lag, clean power can go unused. A report found that India lost 300 GWh of renewable energy in the first quarter of 2026.

Union Minister Ashwini Vaishnaw described the decision at the post-Cabinet briefing. He called it a structural step on how to strengthen the grid to evacuate renewable energy.

How it will be delivered

State Transmission Utilities will implement the scheme. Private transmission service providers will take part through tariff-based competitive bidding, under a build-own-operate-maintain model. That route will be used for new lines. Upgrades to existing lines, substations and towers will be done on a cost-plus basis, with the state utility reimbursed for actual costs plus a guaranteed margin.

What this means for India

The scheme supports India’s goal of 500 GW of renewable energy capacity by 2030. Building plants alone does not deliver clean power if state grids cannot carry it. Because the money goes to state-level networks, the benefit depends on how quickly State Transmission Utilities award and complete projects. Central support is intended to keep transmission charges from raising consumers’ bills. Readers can watch for bidding announcements from their own state utility.

What happens next

The sources reviewed do not list state-wise allocations or bidding dates. The 2032-33 deadline means the work will run across several years. Delivery will rest with state utilities and the companies that win the bids.