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Cabinet approves ₹14,500 crore support for 92 GWh of grid-scale energy storage
The scheme covers pumped hydro, batteries and other storage, with an estimated investment of ₹97,600 crore, and sets a 40% domestic-content rule for batteries.
The Union Cabinet has approved ₹14,500 crore to help build 92 gigawatt-hours (GWh) of grid-scale energy storage, aimed at making renewable power available around the clock.
The Viability Gap Funding (VGF) scheme covers FY 2026-27 to FY 2030-31 and targets storage capacity that is yet to be commissioned. The government says this is equal to 170% of the grid-scale storage India has today, and would help meet a requirement of 411 GWh by 2031-32.
What will be built
The scheme envisages:
- 60 GWh of pumped-storage hydro capacity;
- 30 GWh of battery energy storage systems (BESS); and
- 2 GWh from alternative storage technologies.
The total estimated investment is ₹97,600 crore. VGF support is meant to improve the financial viability of these projects and speed up their deployment.
How it will work
Storage capacity will be allocated through tariff-based competitive bidding. Public and private electricity distribution companies are eligible for VGF on battery and pumped-storage projects, while alternative-technology projects will be run by public and private entities.
To back domestic manufacturing, battery projects must meet a minimum Domestic Content Requirement of 40%. The government says this will complement existing incentives for battery makers and reduce dependence on imported components.
Why it matters
The government says storage helps address the variability of renewable generation and reduces reliance on conventional plants for round-the-clock supply. The scheme, it says, will "strengthen grid stability, improve renewable energy integration, encourage domestic manufacturing and enhance India's energy security".
The release does not say how much of the ₹14,500 crore each category will receive or when the first bids will be invited.
Source: official release by the Cabinet, issued through the Press Information Bureau, Government of India (04 NOV 2026 3:27PM by PIB Delhi). Read the full official text: Cabinet approves Rs.14,500 crore Viability Gap Funding Scheme for development of 92 GWh Grid-Scale Energy Storage Systems.
How we verified this
VerifiedEvery fact, figure and quotation is taken from the official PIB release (Release ID 2332474) issued by the Cabinet on 04 NOV 2026 3:27PM by PIB Delhi; checked against the source on publication. Story written by BDT from that release; no outside facts added.
Sources
- 1.Cabinet approves Rs.14,500 crore Viability Gap Funding Scheme for development of 92 GWh Grid-Scale Energy Storage Systems — Press Information Bureau, Government of India
