In Short : The Indian government has approved ₹5,400 crore viability gap funding for 30 GWh battery storage to boost renewable energy integration. It also announced plans for 1100 kV UHVAC transmission lines and raised land compensation under Right of Way rules. These initiatives aim to modernize grid infrastructure, attract investments, and support 24×7 clean energy availability nationwide.
In Detail : The Indian government has approved a ₹5,400 crore Viability Gap Funding (VGF) scheme to support the development of 30 GWh of Battery Energy Storage Systems (BESS). This move aims to facilitate greater integration of renewable energy into the power grid and ensure round-the-clock availability of clean power. The scheme is expected to attract investments of around ₹33,000 crore by 2028.
The funding will be disbursed through the Power System Development Fund and builds on an earlier commitment of ₹3,700 crore for 13.2 GWh. Under the new initiative, 25 GWh of capacity will be developed across 15 states, while 5 GWh will be implemented by NTPC. Tenders for the projects are expected to be issued within the next three months.
To further support the clean energy transition, the government has extended Inter-State Transmission System (ISTS) charge waivers for both battery and pumped storage projects until June 30, 2028. This is expected to reduce project costs and improve the viability of large-scale energy storage systems.
In a parallel development, the government plans to deploy nine Ultra High Voltage Alternating Current (UHVAC) 1100 kV transmission lines and ten substations by 2034. This ambitious expansion of transmission infrastructure will be backed by a ₹53,000 crore investment and supported by testing facilities at the Central Power Research Institute.
Additionally, significant changes have been made to the Right of Way (RoW) compensation rules. The compensation for tower base area has been increased to 200% of land value, and corridor compensation has been raised to 30%. States such as Haryana and Delhi have already begun implementing these revised norms.
Together, these initiatives represent a major step forward in strengthening India’s power transmission and storage capabilities. They aim to improve grid reliability, attract private investment, and ensure the country meets its clean energy and climate goals efficiently and sustainably.
