Cabinet approves Rs.14,500 crore Viability Gap Funding Scheme for development of 92 GWh Grid-Scale Energy Storage Systems

The Union Cabinet approved a Rs.14,500 crore Viability Gap Funding Scheme to develop 92 GWh of grid-scale energy storage capacity across India from FY 2026-27 to FY 2030-31.

• The scheme targets 411 GWh of total grid-scale energy storage capacity by 2031-32.
• It includes 60 GWh of Hydro Pumped Storage Plant capacity, 30 GWh of Battery Energy Storage System capacity, and 2 GWh of alternative energy storage capacity.
• A minimum Domestic Content Requirement of 40% applies to BESS projects to promote indigenous manufacturing.
• Projects will be allocated through a tariff-based competitive bidding process.
• Public and private sector electricity distribution companies are eligible for VGF support.