Economy
Union Cabinet Approves ₹14,500 Crore VGF Scheme For Energy Storage
The Hindu2h
THE BRIEF
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The Union Cabinet approved a ₹14,500 crore Viability Gap Funding scheme on Wednesday to develop grid-scale energy storage systems across India for the period 2026-27 to 2030-31.
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The scheme aims to support 92 GWh of fresh energy storage capacity, comprising 60 GWh of hydro pumped storage, 30 GWh of battery energy storage, and 2 GWh of alternative technologies, with an estimated total investment of ₹97,600 crore.
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Capacity will be allocated through a tariff-based competitive bidding process, and battery projects will be subject to a minimum Domestic Content Requirement of 40% to promote indigenous manufacturing.