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 initiative 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 allocated for the development of Intra-State Transmission Systems under GEC-III and ₹50,000 crore specifically for deploying 50 GWh of Battery Energy Storage Systems (BESS). The BESS will be positioned 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.
The central government will provide financial support of ₹54,082 crore as Central Financial Assistance (CFA), which is designed to offset Intra-State transmission charges and consequently reduce power costs for end consumers. The scheme has an implementation timeline targeting completion by FY 2032-33.
Implementation Methodology
All Greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be executed under Cost Plus Basis (CPB). State Transmission Utilities will serve as the overall implementing agency, with Transmission Service Providers (TSPs) participating under TBCB on a Build-Own-Operate-Maintain (BOOM) model.
Strategic Objectives and Benefits
The scheme supports India's target of achieving 900 GW installed Non-Fossil capacity by 2035 and contributes to long-term energy security while promoting ecologically sustainable growth through carbon footprint reduction. It is expected to generate substantial direct and indirect employment opportunities in the power sector, manufacturing, and construction industries. Additionally, Battery Energy Storage System manufacturing and deployment will create employment in the domestic energy storage sector, with long-term skilled employment generated in operation, maintenance, and grid management across participating States.