New Delhi, 30 September 2026: The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Green Energy Corridor Phase-III (GEC-III) scheme. This historic initiative will strengthen India's intra-state transmission system to enable migration of up to 135 gigawatts (GW) of renewable energy across states/UTs.

The scheme also provides for deployment of 50 GWh of battery energy storage systems at renewable energy developer/generator sites or any other strategic location to overcome irregularities, traffic jams/congestion, peak-hour curtailment and to meet the demand during non-solar hours. The scheme will facilitate grid integration and power migration across the States/UTs of India.

The target has been set to establish this scheme by the financial year 2032-33. For this the total amount is Rs. It is estimated to cost Rs. 1,86,405 crore, which includes Rs. 1,86,405 crore for development of intra-state transmission systems under GEC-III. 1,36,378 crore and 50 GWh battery energy storage systems worth Rs. 50,000 crores is involved. Under this scheme, a total of Rs. Financial assistance of Rs 54,082 crore will be provided. Central financial assistance will help in reducing the burden of intra-state transmission charges and thereby reduce the cost of electricity. In this way, the ultimate benefit of the government's assistance will go to the citizens of India i.e. the final electricity users.

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  Brownfield upgradation and network strengthening works will be undertaken.

  
  

All greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be undertaken under cost plus basis. State transmission utilities will be the overall implementing agency, and transmission service providers will participate under the TBCB on a build-own-operate-maintain model.

This scheme will help in achieving the target of 900 gigawatt (GW) installed non-fossil capacity by 2035. The scheme will also contribute to the long-term energy security of the country and promote environmentally sustainable growth by reducing carbon footprint. It will create large amount of direct and indirect employment in power sector, manufacturing and construction industries. Production and installation of battery energy storage systems will create additional employment in the energy storage sector in the country. The scheme will also create long-term skilled employment opportunities in operations, maintenance and grid management in the participating states.