Cabinet approves Green Energy Corridor Phase-III with Rs 1.86 lakh crore outlay and 50 GWh storage
The Union Cabinet on 30 September 2026 approved GEC-III to strengthen intra-state transmission for 135 GW of renewable power and add 50 GWh of battery storage, at a total outlay of Rs 1,86,405 crore.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on 30 September 2026 approved the Green Energy Corridor Phase-III (GEC-III) scheme. It aims to strengthen intra-state transmission systems so that states can carry large amounts of solar and wind power, and to deploy Battery Energy Storage Systems (BESS) to balance the grid.
Key numbers
| Item | Figure |
|---|---|
| Total outlay | Rs 1,86,405 crore |
| Intra-state transmission | Rs 1,36,378 crore |
| Battery storage (50 GWh) | Rs 50,000 crore |
| Central financial assistance | Rs 54,082 crore (about 29%) |
| Renewable capacity to be evacuated | up to 135 GW |
| Completion target | FY 2032-33 |
How it will be implemented
- State Transmission Utilities will be the main implementing agencies.
- New (greenfield) transmission projects will be awarded through tariff-based competitive bidding, while upgrades of existing networks (brownfield) will be done on a cost-plus basis.
- Battery storage will be placed at renewable energy plants or at other important points on the grid to handle the ups and downs of solar and wind output, reduce congestion and supply power after sunset.
Why it matters
India is adding solar and wind capacity quickly, but power from these plants is only useful if the grid can carry it to consumers. Earlier phases of the Green Energy Corridor focused on building transmission lines; Phase-III adds a large storage component because solar output drops in the evening, when demand often peaks. The scheme supports the national goal of reaching 900 GW of non-fossil fuel capacity by 2035.
The government expects the scheme to reduce transmission charges over time, help keep consumer tariffs in check and create jobs in power, manufacturing, construction and energy storage.
What to watch
States will need to prepare project plans and run bids. The pace of battery storage tenders, and the prices discovered in them, will show how quickly the 50 GWh target can be met before 2032-33.
Frequently asked questions
What is the total outlay of GEC-III?
Rs 1,86,405 crore, including Rs 50,000 crore for 50 GWh of battery storage.
How much will the Centre contribute?
Central financial assistance of Rs 54,082 crore, about 29% of the total.
When is GEC-III to be completed?
By financial year 2032-33.
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