Cabinet clears a viability gap funding scheme for 92 GW of grid-scale energy storage

4 November 2026

The Union Cabinet has approved a Viability Gap Funding scheme to add 92 GW of grid-scale energy storage in the country. Of that capacity, 60 GW is pumped hydro storage, 30 GW is battery energy storage and 2 GW is reserved for emerging storage technologies. The scheme carries total financial support of Rs 14,500 crore and runs from FY 2026-27 to FY 2030-31. Capacity will be handed out through tariff-based competitive bidding, and both public and private distribution companies can seek the support. Battery projects must meet a minimum 40 per cent domestic content requirement, which is meant to pull manufacturing into India. The release puts the investment the 92 GW should attract at Rs 97,600 crore. It also states a national requirement of 411 GWh of grid-scale storage by 2031-32, against which this award is set.