The Union Cabinet has approved the third phase of the Green Energy Corridor, a scheme worth Rs 1,86,405 crore to carry up to 135 GW of renewable power through state transmission networks and to set up 50 GWh of battery storage. The decision was taken on September 30, 2026 and announced by Union Minister Ashwini Vaishnaw. The scheme is to be completed by 2032-33.
The Green Energy Corridor programme builds the power lines and substations needed to move electricity from solar and wind parks to the places where it is used. Phase III is focused on networks run by the states, along with large batteries that can store daytime solar power for use later.
How the money is split
| Component | Amount |
|---|---|
| Intra-State Transmission Systems (state power lines and substations) | Rs 1,36,378 crore |
| Battery Energy Storage Systems (50 GWh) | Rs 50,000 crore |
| Total outlay | Rs 1,86,405 crore |
| Central financial assistance (part of the total) | Rs 54,082 crore |
The central assistance works out to about 29% of the total cost. The remaining cost is to be met through the implementing agencies and project developers.
How it will be built
- State Transmission Utilities in each state will be the implementing agencies.
- New (greenfield) lines will be awarded through tariff-based competitive bidding, under which private or public transmission companies build, own, operate and maintain the assets.
- Upgrades to existing (brownfield) networks will be done on a cost-plus basis.
- Battery storage is meant to deal with the ups and downs of solar and wind output, ease grid congestion, cut the switching-off of renewable plants at peak hours, and meet demand after sunset.
Key points
- Capacity: transmission to evacuate up to 135 GW of renewable power.
- Storage: 50 GWh of battery storage with a Rs 50,000 crore allocation.
- Deadline: FY 2032-33.
- Central share: Rs 54,082 crore.
Why it matters
India has set a target of 500 GW of installed non-fossil power capacity by 2030. New solar and wind parks can be built quickly, but without power lines and storage the electricity they generate cannot always reach consumers. In some states, renewable plants are asked to cut output at times of the day when the grid cannot take more power.
For consumers, the scheme does not change electricity bills directly. Its aim is a grid that can absorb more clean power and supply it more steadily, including in the evening when solar output drops.
The same Cabinet meeting also approved the minimum support prices for rabi crops and an intelligent traffic management system for Delhi. Delhi commuters have seen other recent infrastructure changes, such as the opening of Barapullah Elevated Road Phase 3, and new GRAP rules for Delhi-NCR.
What happens next
With Cabinet approval in place, the state transmission utilities will take up the projects, with new lines awarded through competitive bidding. The approved deadline for completing the work is 2032-33.
