India Approves $19 Billion Plan to Clear Grid Bottlenecks for 135 GW of Renewables

India’s Union Cabinet, chaired by Prime Minister Narendra Modi, approved the third phase of the Green Energy Corridor scheme on September 30, with a total outlay of roughly Rs 1.86 trillion (around $19.3 billion). The money is earmarked for intra-state transmission lines and battery storage designed to evacuate up to 135 GW of renewable energy capacity from states and union territories where it is generated to where it is needed.

Where the Money Goes

Of the total outlay, about Rs 1.36 trillion is allocated to building intra-state transmission systems, while roughly Rs 500 billion is set aside for 50 GWh of battery energy storage systems. The storage will sit either at renewable generators’ sites or at other grid locations chosen for their value in easing congestion, smoothing out intermittency, and meeting demand during non-solar hours and peak-curtailment periods. The central government will provide Rs 540.82 billion in direct financial support, with the rest funded by states and project developers. The scheme is targeted for completion by the 2032-33 financial year.

A Grid Under Strain

The investment follows warning signs from India’s power system. TheDailyEnergy.com reported last week that India’s power shortfall hit a three-year high as coal plants were pressed into service to cover a hydropower gap, and that the government was weighing mandatory imported-coal blending to keep plant stockpiles from running down further. Green Energy Corridor Phase-III addresses a related but distinct problem: even where renewable generation capacity exists or is being built, the transmission network and storage needed to move that power reliably from generation sites — often in resource-rich but remote states — to demand centers has lagged behind.

Built on Two Earlier Phases

The scheme builds on two earlier Green Energy Corridor phases that funded transmission infrastructure for renewable-rich states. Phase-III is explicitly designed with battery storage as a core component for the first time, reflecting how central storage has become to India’s renewable buildout as the country pursues a target of 500 GW of non-fossil capacity by 2030.

What Comes Next

Implementation will run through state transmission utilities and project developers, with the central subsidy structured to de-risk projects enough to attract private investment in the storage component. Given the scheme’s multi-year construction timeline, its effects on grid reliability are unlikely to show up quickly — but industry trackers will be watching how fast individual states move to tender the transmission and storage packages the scheme funds.

For the storage side of India’s grid build-out, see India Battery Storage Tenders: SECI BESS Tracker (2026).

Sources: Indian Infrastructure, “Cabinet approves Rs 1.86 trillion Green Energy Corridor Phase-III scheme,” Oct. 1, 2026; DT Next, “Cabinet approves Rs 1.86 lakh cr Green Energy Corridor to evacuate 135GW renewable energy,” Oct. 1, 2026; Angel One, “Government approves Green Energy Corridor Phase III with Rs 1.86 lakh crore outlay,” Oct. 1, 2026.

Illustrative image. Photo: Dietmar Rabich, CC BY-SA 4.0, via Wikimedia Commons — source