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 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 end or other strategic locations to address grid flexibility issues including intermittency, congestion, peak-hour curtailment, and non-solar hour demand.
The central government will provide financial support of ₹54,082 crore as Central Financial Assistance, which will help offset Intra-State transmission charges and ultimately reduce power costs for end consumers. The scheme is targeted for completion by FY 2032-33.
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.
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 significant direct and indirect employment opportunities in the power sector, manufacturing, construction industries, and domestic energy storage sector, along with creating long-term skilled employment in operation, maintenance, and grid management across participating States.