The Union Cabinet has approved the Green Energy Corridor Phase-III (GEC-III) scheme to strengthen electricity transmission networks within states and union territories. The scheme will enable the evacuation of up to 135 Gigawatt (GW) of renewable energy across India and deploy 50 Gigawatt-hour (GWh) of Battery Energy Storage Systems (BESS) to stabilise the power grid.
This is a major infrastructure push by the Ministry of Power to support India’s renewable energy expansion. The scheme will be implemented by state transmission utilities with private sector participation through competitive bidding.
Key facts
- Total project outlay: Rs 1,86,405 crore
- Breakdown: Rs 1,36,378 crore for intra-state transmission systems; Rs 50,000 crore for battery storage
- Central government financial support: Rs 54,082 crore
- Renewable energy evacuation capacity: 135 GW
- Battery storage deployment: 50 GWh
- Implementation timeline: By financial year 2032-33
- Implementing agencies: State Transmission Utilities and Transmission Service Providers
What the scheme will do
The GEC-III scheme addresses two critical challenges in India’s renewable energy transition. First, it expands the transmission network within states to physically move renewable power from generation sites to consumption centres. Second, it adds large-scale battery storage to solve the intermittency problem—renewable sources like solar and wind do not generate power 24 hours a day, but batteries can store energy and release it during peak demand or non-solar hours.
The scheme specifically tackles grid congestion, power curtailment during peak hours, and the need to meet demand during non-solar periods. By deploying storage systems at renewable energy generator sites or at strategically important grid locations, the system becomes more flexible and reliable.
How the scheme will be implemented
New transmission projects (greenfield) will be built through Tariff Based Competitive Bidding (TBCB), a transparent auction process where companies bid to build, own, operate and maintain infrastructure. Upgrades to existing networks (brownfield projects) will be executed on a Cost Plus Basis where justified costs are reimbursed with a fixed profit margin.
State Transmission Utilities, which are government-owned, will oversee the entire implementation. Private Transmission Service Providers (TSPs) can participate in building new projects under the Build-Own-Operate-Maintain (BOOM) model, meaning a private company can build the infrastructure, own it, collect revenue, and maintain it over the contract period.
The central government’s financial support of Rs 54,082 crore will help keep transmission charges down, which ultimately reduces electricity costs for consumers.
Connection to renewable energy targets
This scheme is directly linked to India’s target of achieving 900 GW of installed non-fossil fuel capacity by 2035. Without adequate transmission and storage infrastructure, renewable power cannot reach consumers efficiently, and the grid becomes unstable. The GEC-III scheme removes these bottlenecks.
The scheme also supports India’s climate commitments by reducing the carbon footprint of the power sector and promoting sustainable economic growth.
Employment and manufacturing opportunities
The scheme is expected to create large-scale direct and indirect jobs across multiple sectors. Power sector, construction, and manufacturing industries will gain employment during the implementation phase. Battery Energy Storage System (BESS) manufacturing and deployment will spur growth in India’s domestic energy storage industry, generating both production jobs and skilled positions in operation, maintenance, and grid management across participating states.
What this means for you
Citizens and businesses will eventually benefit from more stable electricity supply and lower power costs, as the government’s financial support will reduce transmission charges. States with high renewable energy potential will be better able to monetise their resources by transmitting clean power to other regions. Farmers and rural areas dependent on solar and wind power will see more reliable access. Job seekers in manufacturing, construction, and power sector operations will find new opportunities.
What happens next
The scheme is targeted for completion by financial year 2032-33. State governments and transmission utilities will begin planning and tendering projects once detailed guidelines are issued. Private sector participation through competitive bidding is expected to commence soon thereafter.