Cabinet Clears Rs 14,500 Crore Viability Gap Funding for 92 GWh Grid Energy Storage The Union Cabinet has sanctioned a Rs 14,500 crore Viability Gap Funding scheme to build 92 GWh of grid-scale energy storage capacity across India. 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. What this means for you The approval of grid-scale storage strengthens power grid stability and paves the way for reliable, round-the-clock clean electricity for consumers and businesses. • Across India: Expanding storage capacity directly limits power grid fluctuations and curtails renewable energy curtailment during peak production hours. This ensures that excess solar and wind power generated during the day can supply peak nighttime demand without disruption. • For Industry and Manufacturing: The Viability Gap Funding allocation de-risks large investments in utility-scale storage infrastructure across multiple states. This capital inflow creates supply chain demand for battery manufacturing, engineering operations, and local power sector jobs. • For Electricity Consumers: Storing low-cost clean power flattens generation cost curves during peak demand spikes, helping distribution utilities stabilize retail power tariffs. Urban and rural networks gain greater voltage stability and fewer unplanned load-shedding incidents. • Environmental Impact: Utility-scale batteries reduce the need for fossil-fuel peaking plants that fire up during high-demand intervals. Shifting load demands to stored solar and wind energy directly reduces national carbon intensity. Questions & Answers 1. How much funding did the Union Cabinet approve for energy storage? The Union Cabinet approved Rs 14,500 crore under a Viability Gap Funding scheme to develop grid-scale energy storage. 2. What is the total storage capacity targeted under this scheme? The scheme aims to develop 92 GWh of grid-scale energy storage capacity across India. 3. Who chaired the Cabinet meeting that approved this scheme? The Union Cabinet meeting was chaired by Prime Minister Narendra Modi. 4. What did Rajnath Singh say regarding the approval? Rajnath Singh stated that the decision provides a major boost to India's clean energy transition and long-term energy security. Leader Profile: Rajnath Singh • Role: Union Defence Minister • Born: 10 July 1951, Chandauli, Uttar Pradesh • Party: Bharatiya Janata Party (BJP) • Education: MSc in Physics India's Defence Minister since 2019, a former Home Minister and two-time BJP National President. He was Chief Minister of Uttar Pradesh (2000–02). Political Career & Achievements • Chief Minister of Uttar Pradesh (2000–2002) • BJP National President (2005–09 & 2013–14) • Union Home Minister (2014–2019) • Union Defence Minister (since 2019) • Member of Parliament from Lucknow Quick Facts • Worked as a physics lecturer before entering politics. • Was jailed for nearly two years during the 1975 Emergency. https://trendkia.com/en/neta-ji/kaibineta-ne-grida-urja-bhndarana-ke-lie-14-500-karora-rupaye-ki-vijiepha-yojana-ko-di-mnjuri-56569 TrendKia — Har trend, sabse pehle.