Full Breakdown
India Approves Green Energy Corridor Phase-III to Evacuate 135 GW of Renewable Power
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Cabinet Approval of GEC-III
On September 30, the Union Cabinet chaired by Prime Minister Narendra Modi approved the Green Energy Corridor Phase-III (GEC-III) scheme, also called the PM-DHARA programme. The plan allocates INR1,86,405 crore to strengthen intra-state transmission networks and install 50 GWh of battery energy storage systems (BESS). Central Financial Assistance of INR54,082 crore will offset transmission charges, the cabinet statement said.
Background & Context
India’s renewable-energy capacity has risen sharply, reaching 162.15 GW of solar power by June 30 2026. Transmission bottlenecks forced curtailment of solar output; during the April-June quarter, when peak demand hit a record 270 GW, grid operators curtailed 8,133 GWh of solar generation. About 12 GW of renewable projects face evacuation restrictions during peak solar periods, exposing developers to revenue losses. GEC-III aims to expand transmission capacity ahead of further renewable additions.
Data & Statistics
- Renewable power evacuation target: 135 GW across states and Union Territories.
- Battery storage component: 50 GWh BESS, to be sited at generator ends or other strategic locations.
- Project outlay: INR1,86,405 crore (INR1,36,378 crore for InSTS, INR50,000 crore for BESS).
- Central Financial Support: INR54,082 crore (INR45,005 crore for InSTS, INR6,000 crore for BESS via Viability Gap Funding, INR3,050 crore for earlier-phase liabilities, INR27 crore for programme management).
- Implementation model: New transmission projects awarded through Tariff-Based Competitive Bidding (TBCB) with a Build-Own-Operate-Maintain (BOOM) framework; brownfield upgrades on a Cost-Plus Basis (CPB).
- Transmission progress to date: Under GEC-I, 9,130 ckm of lines built across eight states; under GEC-II, 1,124 ckm of lines and 6,860 MVA of substation capacity commissioned as of June 30.
Official Statements & Responses
All greenfield projects will be executed under the TBCB-BOOM model, while brownfield upgrades will follow CPB. State Transmission Utilities are the implementing agencies. The government linked the scheme to its renewable-energy targets, stating that the expanded corridor will support the 500 GW non-fossil capacity goal for 2030 and the 900 GW target for 2035. Employment impacts were highlighted, with expectations of “large direct & indirect employment” in power generation, manufacturing, construction, and energy-storage sectors.
Verbatim Quotes
- “The programme will focus on making the grid smarter, upgrading existing infrastructure, building new transmission lines and introducing innovations to manage renewable-energy variability,” — Ashwini Vaishnaw, union minister
- “The country's current power generation capacity exceeds 500 gigawatts, with renewable energy sources already accounting for 52% of this total...the grid must be designed to manage the load associated with these fluctuations.” — Ashwini Vaishnaw, union minister
Why It Matters
By enlarging transmission capacity and adding grid-scale storage, GEC-III aims to reduce renewable curtailment, improve grid flexibility, and enable reliable supply during non-solar hours. The scheme is positioned as a cornerstone of India’s clean-energy transition, aligning generation growth with infrastructure needed to move power from renewable-rich regions to demand centres. The projected investment leverage of INR1.32 lakh crore in transmission infrastructure and INR4.6 lakh crore associated with the 135 GW of renewable capacity underscores the programme’s scale. Successful implementation is expected to lower electricity costs for consumers, enhance energy security, and contribute to the country’s carbon-footprint reduction commitments.
Conflicting Reports & Gaps
Sources uniformly cite the 135 GW evacuation target and the 50 GWh storage goal. However, the fiscal completion window is described as “FY 2032-33” in some outlets and “FY 33” in others, a minor wording discrepancy. No independent verification of projected job-creation figures is provided, leaving that impact estimate uncorroborated.