The Union Cabinet has approved a Rs 14,500 crore financial package under the Viability Gap Funding (VGF) scheme to develop grid-scale energy storage systems across the country. Chaired by Prime Minister Narendra Modi, the Cabinet greenlit the initiative to establish a total of 92 GWh of storage capacity, aimed at stabilizing the power grid and absorbing growing volumes of clean power.
Rajnath Singh Highlights Clean Energy Transition
Reacting to the decision, Rajnath Singh wrote on X that the approval marks a major boost to the country's clean energy transition and long-term energy security. The financial outlay under the VGF scheme seeks to lower project capital risks and accelerate private participation in utility-scale battery and storage installations nationwide.
Expanding India's Clean Energy Infrastructure
The push for large-scale energy storage arrives as India intensifies its integration of variable solar and wind energy into the national grid. The Union Budget 2026-27 previously unveiled a Rs 20,000 crore CCUS plan alongside customs duty relief for solar and energy storage equipment, while initiatives such as Green Energy Corridor III continue to lay the transmission backbone required for this shift.
Multiple clean power programs have gained traction nationwide. Andhra Pradesh recently added 3.9 GW of renewable power capacity, and Ladakh’s Puga Valley commissioned the country's first and deepest geothermal wells. Union Minister Pralhad Joshi launched a dedicated wind supply chain portal, while POWERGRID received a Rs 7,500 crore equity boost following expanded investment powers cleared by the Cabinet. Furthermore, the World Bank sanctioned 890 million dollars in support for the national rooftop solar program, alongside industrial investments such as a Rs 160 crore project in Gujarat to set up a 1.2 GW solar cell plant. The new 92 GWh grid storage initiative ties these developments together by enabling round-the-clock clean electricity delivery across regional grids.
