QAZAQ GREEN.  India’s Union Cabinet, chaired by Prime Minister Narendra Modi, on November 4 approved a $1.5 billion (145 billion rupees) financial support scheme for developing 92 GWh of grid-scale energy storage.

The scheme covers fiscal years 2026-27 to 2030-31 and is delivered as viability gap funding (VGF). The support is meant to improve the financial viability of projects and speed up the deployment of large-scale storage.

The new capacity is split as follows: 60 GWh from hydro pumped storage plants, 30 GWh from battery energy storage systems and 2 GWh from alternative technologies. The projects are expected to attract a total investment of 97,600 crore rupees (976 billion rupees).

Capacity will be allocated through tariff-based competitive bidding. Public and private electricity distribution companies will be eligible for support for battery and pumped storage projects, while projects using alternative technologies can be implemented by public and private entities.

The scheme also sets a condition for manufacturing: battery storage projects must meet a minimum domestic content requirement of 40%. The government links this to building domestic production and reducing dependence on imported components.

According to the government, the new capacity will equal 170% of India’s existing grid-scale storage and will help meet a requirement of 411 GWh by fiscal 2031-32. The aim is to integrate more renewable energy, strengthen grid stability and ensure reliable round-the-clock power supply, while advancing the goals of Atmanirbhar Bharat and Viksit Bharat.