Cabinet approves Green Energy Corridor Phase III with nearly Rs 1.9 lakh crore outlay for 51,126 ckm transmission lines and 50 GWh battery storage

Key facts

• The Union Cabinet approved the third phase of the Green Energy Corridor (GEC-III) with an outlay of Rs 1,86,405 crore to strengthen intra-state transmission networks.
• GEC-III will create 51,126 circuit kilometres of transmission lines and nearly 229 GVA of transformation capacity to evacuate 135 GW of renewable energy across states and Union territories.
• The scheme includes deployment of 50 GWh of Battery Energy Storage Systems (BESS) to store surplus green energy, provide grid flexibility and meet demand during non-solar hours.
• The outlay comprises Rs 1,36,378 crore for developing intra-state transmission systems and Rs 50,000 crore for BESS over seven years, with total central financial support of Rs 54,082 crore.
• Ministry of New and Renewable Energy Secretary Santosh Kumar Sarangi said 70% of the scheme will comprise greenfield projects awarded through tariff-based competitive bidding, while the remaining 30% will be brownfield upgrades executed on a cost-plus basis.
• State transmission utilities will be the overall implementing agencies for the scheme.
• A steering committee at the level of Cabinet Secretary will monitor the scheme's progress every six months, while a project monitoring committee headed by a joint secretary will regularly review timelines.
• More than 8,000 GWh of renewable energy was curtailed in Q1 of 2026-27 due to inadequate transmission networks, a problem GEC-III is expected to address to some extent.
• BESS deployment is tied to domestic content requirements (DCR) to spur local manufacturing, with technical consultations to be held to frame guidelines for DCR for locally made components.
• The last project under GEC-I is expected to be completed by the end of the ongoing financial year, while all projects under GEC-II are likely to be completed by March 2028.