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

Cabinet approves Rs 1.86 lakh crore Green Energy Corridor-III with 50 GWh battery storage

The scheme to run until FY 2032-33 pairs state transmission upgrades for 135 GW of renewable power with Rs 50,000 crore of grid-scale batteries.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Green Energy Corridor Phase-III (GEC-III) scheme. It will strengthen state power networks and add 50 gigawatt-hours (GWh) of battery energy storage. According to the official release dated 30 September 2026, the aim is to move more renewable electricity to where it is needed and to make it available after sunset.

The numbers behind the approval

The scheme has a total outlay of Rs 1,86,405 crore and is targeted for completion by FY 2032-33. According to the government statement, Rs 1,36,378 crore is for intra-state transmission systems (InSTS) and Rs 50,000 crore is for 50 GWh of battery energy storage systems (BESS). Intra-state transmission means the lines and substations inside a state or Union Territory.

The transmission upgrades are meant to enable evacuation of up to 135 GW of renewable energy across States and Union Territories. “Evacuation” simply means carrying power from solar and wind sites into the grid. A gigawatt-hour measures stored energy, so 50 GWh is the total electricity the batteries could hold when full.

The Centre will provide central financial support of Rs 54,082 crore. That is roughly 29 per cent of the outlay. The government says this assistance will help offset intra-state transmission charges and thus keep power costs down.

Why storage is part of the plan

The batteries can be placed at renewable developers’ or generators’ sites, or at other locations important for grid flexibility. The release says they are meant to address intermittency, congestion, peak-hour curtailment and non-solar hour demand. In practice, they can hold surplus midday solar power and release it in the evening peak. They also reduce the waste that occurs when the grid cannot take all the power being generated.

The government links the scheme to its target of 900 GW of installed non-fossil capacity by 2035. It also expects jobs in the power, manufacturing and construction sectors, with battery manufacturing and deployment adding employment in the domestic energy storage industry.

What this means for India

India’s solar fleet is growing faster than the wires and storage that serve it. A PIB backgrounder cited by ANI puts installed solar capacity at 162.15 GW on 30 June 2026, up from about 3 GW in 2014. GEC-III targets the gap inside states, where renewable projects often wait for transmission. Industry voices say the lack of new transmission capacity is delaying renewable additions. The scheme also gives domestic battery makers a visible demand signal. State utilities will now need to turn the approval into projects on the ground.

How it compares with earlier phases

GEC-III is much larger than its predecessors. Phase-II, approved in January 2022 for FY 2021-22 to 2025-26, had a Rs 12,031-crore proposal covering about 20 GW of non-fossil power in seven states. Phase-II set central assistance at 33 per cent of project cost. GEC-III is the first phase to include storage as a dedicated component and covers states and Union Territories across the country.

Industry reaction has been positive. Premier Energies’ Chief Business Officer Vinay Rustagi said the lack of new transmission is delaying renewable additions and is among the industry’s biggest concerns. Avaada Group Chairman Vineet Mittal said the opportunity for India lies in building the capability to design, manufacture, install and maintain such systems at scale, according to a report carried by inkl.

What happens next

The Cabinet statement sets out the outlay and targets but, in the material reviewed, does not detail how the 50 GWh will be divided among states or when tenders will open. Those details will determine how quickly the batteries and lines are built. The implementation period runs through FY 2032-33.