Cabinet Approves PM-DHARA Scheme for Renewable Energy Transmission and Storage
The Union Cabinet chaired by Prime Minister Narendra Modi has approved the PM-DHARA (PM-Developing Harmonized and Accelerated Renewable-energy Access) Scheme, a comprehensive initiative to strengthen India's Intra-State Transmission System (InSTS) and deploy battery energy storage infrastructure. The scheme has a total project outlay of ₹1,86,405 crore and is targeted for completion by FY 2032-33.
The scheme aims to enable evacuation of up to 135 Gigawatt (GW) of renewable energy across States and Union Territories while deploying 50 GWh of Battery Energy Storage Systems (BESS) at renewable energy developer/generator ends or other strategic locations. This storage capacity will address grid flexibility challenges including intermittency, congestion, peak-hour curtailment, and non-solar hour demand requirements.
Financial Structure and Implementation Model
The financial allocation includes ₹1,36,378 crore for development of Intra-State Transmission Systems under GEC-III and ₹50,000 crore specifically for the 50 GWh Battery Energy Storage Systems. The Central Financial Support totals ₹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 on 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 Expected 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 across 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.