The Union Cabinet on Wednesday, 30 September 2026, approved the Green Energy Corridor Phase-III (GEC-III), a scheme to strengthen state-level power networks so they can carry up to 135 gigawatts (GW) of renewable energy. The total outlay is Rs 1,86,405 crore, and the scheme is targeted for completion by FY 2032-33. The aim is to make sure new solar and wind plants have the wires and storage they need to deliver power.
The scheme is also being referred to as PM-DHARA. The name stands for Developing Harmonised and Accelerated Renewable Energy Access.
Where the money goes
The outlay has two parts. Rs 1,36,378 crore is for intra-state transmission systems, and Rs 50,000 crore is for 50 GWh of battery energy storage systems. Intra-state lines are the ones inside a state’s own network. They link wind and solar sites to substations and then to consumers.
A gigawatt-hour measures stored energy. By that measure, 50 GWh could supply 1 GW of demand for 50 hours. The Centre will provide Rs 54,082 crore of the total as central financial support. The government says this support will offset intra-state transmission charges and help keep power costs down.
New greenfield lines will be built through tariff-based competitive bidding. Upgrades to existing networks will be done on a cost-plus basis.
Why storage and wires come together
Solar and wind output rises and falls with sunshine and wind. The battery component is meant to address intermittency, congestion and peak-hour curtailment, and to help meet demand after sunset. Curtailment means clean power is available but has to be switched off because the grid cannot take it.
A presentation at the Cabinet briefing warned that renewable power could face curtailment without adequate transmission. It said transmission capacity needs to come before new renewable capacity. Union Minister Ashwini Vaishnaw described the scheme as “a structural step” to strengthen the grid for evacuating renewable energy.
How it compares with earlier phases
This is a big step up from earlier phases. Phase-II, approved in 2022, covered about 20 GW of renewable projects in seven states. The first phase had an outlay of Rs 10,142 crore. GEC-III targets 135 GW across states and Union Territories.
What this means for India
India’s generation capacity is growing faster than the lines that carry it. According to a government backgrounder, installed solar capacity reached 162.15 GW by 30 June 2026, up from around 3 GW in 2014. The scheme supports the target of 500 GW of renewable capacity by 2030. For consumers, the stated benefit is lower transmission costs. For states, it means grid upgrades that let them use more of the clean power they produce.
What happens next
Delivery will depend on state transmission utilities and the bidding process for new lines. The government says the scheme will generate large direct and indirect employment in the power sector, manufacturing and construction. Project-wise details, state allocations and bidding timelines had not been published in the sources reviewed.
Sources
- Cabinet approves Rs 1.86 lakh crore green energy corridor to evacuate 135GW renewable energy – The Tribune
- Cabinet approves Rs 1.86 lakh cr Green Energy Corridor to evacuate 135GW renewable energy – DT Next
- Cabinet clears Rs 1.86-lakh-cr PM-DHARA scheme to evacuate 135 GW of renewable power – PSU Watch
- Cabinet clears Rs 1.86 lakh crore Green Energy Corridor-III to evacuate 135 GW renewable power – The Tribune (ANI)
- Cabinet clears Rs 1.86 lakh crore Green Energy Corridor-III to evacuate 135 GW renewable power – Jammu Links News
- Govt nod to Rs 12k cr green energy corridor (Phase-II) – The Tribune
This story was researched and drafted with AI assistance and reviewed by a PlanetPositive.Life editor before publication.
