The Union Cabinet approved the Green Energy Corridor Phase III scheme on Wednesday, September 30, with a total planned outlay of ₹1,86,405 crore to expand renewable-power transmission and battery storage across India.
The Green Energy Corridor Phase III programme is designed to help states and Union Territories transmit up to 135 gigawatts of renewable electricity. The government has set a target of completing the programme by the 2032-33 financial year.
Green Energy Corridor Phase III funding
Of the total outlay, ₹1,36,378 crore has been assigned to intra-state transmission systems. A further ₹50,000 crore is intended for 50 gigawatt-hours of battery energy storage systems located at renewable-energy projects or other strategically important points on the grid.
The Cabinet decision includes ₹54,082 crore in central financial support. According to the government, this assistance is intended to offset intra-state transmission charges and reduce the effect of new infrastructure costs on electricity consumers.
The battery component is a significant addition to the Green Energy Corridor programme. Storage can absorb electricity when solar or wind generation is high and release it when output falls or demand rises. The government said the proposed systems would help address intermittency, grid congestion, peak-hour curtailment and demand during non-solar hours.
Why new transmission capacity is needed
India has added renewable generating capacity rapidly, but transmission construction has not always kept pace. The Indian Express reported that about 21 GW of installed renewable capacity currently relies on temporary grid connections while awaiting dedicated transmission infrastructure. Around 12 GW faces restrictions during periods of peak solar generation.
The report also cited government data showing that approximately 6,900 GWh of clean electricity was restricted during the 2025-26 financial year because generation and transmission capacity were not aligned. During April-June, grid operators curtailed 8,133 GWh of solar generation while managing transmission bottlenecks and system security.
Phase III is therefore intended to address a practical constraint in India’s energy transition: producing renewable electricity is useful only when the network can carry it reliably to consumers.
How the projects will be delivered
New, or greenfield, transmission projects under the scheme will use tariff-based competitive bidding. Existing-network upgrades and strengthening work will follow a cost-plus model. State transmission utilities will act as the overall implementing agencies, while selected transmission providers will build, own, operate and maintain competitively awarded projects.
The Cabinet said the programme would support India’s goal of reaching 900 GW of installed non-fossil capacity by 2035. The scheme is also expected to create work in power transmission, construction, manufacturing, battery deployment, grid operations and maintenance, although the government did not provide a specific employment estimate.
