India Approves 1.86 Lakh Crore Green Energy Corridor Scheme

The Union Cabinet of India, chaired by Prime Minister Narendra Modi, approved the Green Energy Corridor Phase-III (GEC-III) scheme on September 30, 2026. The initiative carries a total project outlay of ₹1,86,405 crore, with the central government providing ₹54,082 crore in financial assistance to offset transmission charges for consumers.

The scheme aims to establish intra-state transmission systems to evacuate 135 GW of renewable energy and deploy 50 GWh of Battery Energy Storage Systems (BESS) by fiscal year 2032-33. Financial allocations include ₹1,36,378 crore for transmission systems and ₹50,000 crore for battery storage to manage the volatility and intermittency of solar and wind power.

Union Minister Ashwini Vaishnaw stated that establishing grid infrastructure before adding renewable projects is critical to avoid power curtailment. The project supports India's broader targets of 500 GW of renewable capacity by 2030 and 900 GW of non-fossil capacity by 2035. State Transmission Utilities will serve as the implementing agencies, utilizing a mix of Tariff Based Competitive Bidding for greenfield projects and a cost-plus basis for brownfield upgrades.