IndiaPosted at: Sep 30 2026 4:01PM


Cabinet clears Rs 1.86 lakh cr Green Energy Corridor-III to boost renewable power transmission

New Delhi, Sep 30 (UNI) The union Cabinet on Wednesday 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 the evacuation of up to 135 GW of renewable energy across States and union Territories by 2032-33.
Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw described the approval as a “historic initiative” that would significantly strengthen India’s intra-State Transmission System (InSTS) and enable the integration of large volumes of renewable energy into the national grid.
Of the total outlay, Rs 1,36,378 crore will be allocated for developing intra-State transmission systems, while Rs 50,000 crore will be used for deploying 50 GWh of Battery Energy Storage Systems (BESS) at renewable energy developer or generator locations and other strategically important points in the grid.
The Cabinet has approved Central Financial Assistance (CFA) of Rs 54,082 crore for the scheme. According to the government, the assistance will help offset intra-State transmission charges, contain the cost of electricity and ultimately benefit consumers.
The BESS component is aimed at providing greater flexibility to the power grid and addressing the challenges posed by the intermittent nature of renewable energy. The storage capacity is expected to help manage transmission congestion, peak-hour curtailment and demand during non-solar hours, while improving the evacuation and utilisation of renewable electricity within States and union Territories.
The scheme is targeted for completion by 2032-33 and is intended to support India’s long-term transition towards a larger non-fossil electricity generation base. The government said GEC-III would contribute to the national objective of achieving 900 GW of installed non-fossil fuel-based capacity by 2035.
Under the InSTS component, all greenfield projects will be implemented through the Tariff Based Competitive Bidding (TBCB) route, while brownfield upgradation and network-strengthening works will be undertaken on a Cost Plus Basis (CPB). State Transmission Utilities will act as the overall implementing agencies, with Transmission Service Providers participating in competitively bid projects under a Build-Own-Operate-Maintain (BOOM) model.
The government said GEC-III would substantially strengthen the capacity of State and union Territory grids to absorb rising renewable generation, particularly from solar and wind projects. Large-scale battery storage will provide additional flexibility by storing electricity when renewable generation is high and supplying it when demand rises or solar generation declines.
The scheme is also expected to generate wider economic and environmental benefits by expanding transmission infrastructure and creating demand for battery storage. The government said the programme would generate direct and indirect employment in the power, manufacturing and construction sectors and create additional opportunities for the domestic energy-storage industry.
It is also expected to create long-term skilled employment in areas such as transmission-network operation and maintenance, battery-storage management and grid management across participating States and union Territories.
The government said the expansion of renewable-energy transmission infrastructure would strengthen long-term energy security and promote ecologically sustainable growth by helping reduce the carbon footprint of the power sector.
With renewable-energy capacity expected to expand substantially in the coming years, GEC-III is aimed at addressing a key challenge of the energy transition—ensuring that electricity generated from solar, wind and other renewable sources can be transmitted efficiently to centres of demand. The combination of expanded intra-State transmission networks and large-scale battery storage is expected to improve the grid’s ability to handle fluctuations in renewable generation, reduce curtailment and enhance power availability during periods when solar and wind generation is lower. UNI SKA AAB
Tags: #Cabinet clears Rs 1.86 lakh cr Green Energy Corridor-III to boost renewable power transmission
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