The Union Cabinet cleared a ₹14,500 crore viability gap funding scheme to build 92 GWh of grid-scale energy storage by FY31, aimed at supporting renewable energy integration.

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• The Union Cabinet on November 4 approved a Viability Gap Funding scheme with total support of ₹14,500 crore for grid-scale energy storage systems.
• The scheme targets 92 GWh of new storage capacity between FY2026-27 and FY2030-31.
• The capacity is split into 30 GWh of battery energy storage, 60 GWh of pumped storage projects and 2 GWh of emerging storage technologies.
• The supported projects are expected to attract an estimated investment of ₹97,600 crore.
• The VGF support is meant to improve the financial viability of projects and speed up deployment of large-scale storage infrastructure.
• Storage capacity will be allocated through tariff-based competitive bidding.
• Public and private power distribution companies will be eligible for VGF support for battery and hydro pumped storage projects.
• Industry reports mention a 40 per cent domestic content requirement for battery storage under the scheme.
• The scheme is intended to support renewable energy integration and strengthen the country's power infrastructure.
• The Cabinet cleared it the same day as a ₹2,814 crore critical mineral processing scheme and a ₹4,371 crore statistical modernisation scheme.

Tags: EnergyStorage, ViabilityGapFunding, PumpedStorage