Cabinet Approval of Green Energy Corridor Phase-III Scheme

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Green Energy Corridor Phase-III (GEC-III) scheme with a total project outlay of ₹1,86,405 crore. This comprehensive scheme aims to strengthen India's Intra-State Transmission System (InSTS) to enable evacuation of up to 135 Gigawatt (GW) of renewable energy across States and Union Territories.

The scheme includes two major components: ₹1,36,378 crore for the development of Intra-State Transmission Systems under GEC-III and ₹50,000 crore for deployment of 50 GWh of Battery Energy Storage Systems (BESS). The BESS will be deployed at Renewable Energy developer/generator ends or other strategic locations to address grid flexibility issues including intermittency, congestion, peak-hour curtailment, and non-solar hour demand management.

Financial Support and Implementation Structure

The scheme provides total Central Financial Support of ₹54,082 crore, which will help offset Intra-State transmission charges and ultimately reduce power costs for end consumers. Implementation will follow a dual approach: all Greenfield projects under the InSTS component will be executed through Tariff Based Competitive Bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be undertaken under Cost Plus Basis (CPB). State Transmission Utilities will serve as the overall implementing agency, with Transmission Service Providers participating under TBCB on a Build-Own-Operate-Maintain (BOOM) model.

Strategic Objectives and Timeline

The scheme is targeted for completion by FY 2032-33 and supports India's goal of achieving 900 GW installed Non-Fossil capacity by 2035. It is expected to contribute significantly to long-term energy security, promote ecologically sustainable growth through carbon footprint reduction, and generate substantial employment opportunities. The project will create large direct and indirect employment in the power sector, manufacturing, and construction industries, with additional employment generation in domestic energy storage manufacturing and deployment. Long-term skilled employment will also be created in operation, maintenance, and grid management across participating States.