Cabinet clears Rs 1.86 trillion Green Energy Corridor to boost renewable power
The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Green Energy Corridor Phase-III (GEC-III) scheme, a major expansion of India’s intra-state power transmission network aimed at moving up to 135 GW of renewable energy across states and Union Territories.
Announcing the decision, PM Modi posted on X: “Cleaner power. Stronger grids. More opportunities.”
The scheme is designed to strengthen the Intra-State Transmission System (InSTS), which will help integrate renewable power generated within states into the wider electricity grid.
A key component of GEC-III is the deployment of 50 GWh of Battery Energy Storage Systems (BESS). These batteries can be installed at renewable energy generation sites or other locations important for grid management.
The storage capacity is expected to help address one of the biggest challenges associated with renewable energy — its intermittency. Solar power, for instance, is not available at night, while renewable generation can fluctuate depending on weather conditions.Cleaner power. Stronger grids. More opportunities.The Cabinet decision on the Green Energy Corridor Phase-III will ensure:135 GW renewable energy evacuation.50 GWh battery storage.Stronger power grids across States and UTs.More jobs in manufacturing, construction— Narendra Modi (@narendramodi) September 30, 2026
According to the government, the battery systems will help manage grid congestion, reduce curtailment during peak hours and meet electricity demand during non-solar hours.
The scheme is targeted for completion by FY 2032-33 and has a total project outlay of Rs 1,86,405 crore. Of this, Rs 1,36,378 crore has been earmarked for developing intra-state transmission systems, while Rs 50,000 crore will support 50 GWh of battery storage.
The government will provide Rs 54,082 crore in Central Financial Support (CFA). This support is intended to offset intra-state transmission charges and help keep electricity costs lower for consumers.
Under the transmission component, all new, or greenfield, projects will be implemented through Tariff Based Competitive Bidding (TBCB). Brownfield projects involving upgrades and strengthening of existing networks will be executed on a Cost Plus Basis.
State Transmission Utilities will serve as the overall implementing agencies, while Transmission Service Providers will participate in competitive bidding under a Build-Own-Operate-Maintain (BOOM) model.
The government said GEC-III will contribute towards India's target of achieving 900 GW of installed non-fossil fuel capacity by 2035.
Beyond transmission infrastructure, the scheme is expected to create employment in power generation, manufacturing, construction and energy storage.
The expansion of battery storage will also support India's domestic energy-storage industry, while the larger grid will require skilled workers for operations, maintenance and grid management.
The government said the corridor will strengthen long-term energy security while supporting the integration of renewable energy and reducing the carbon footprint of India's electricity system.- Ends
