PM DHARA: ₹1.86 Lakh Crore Green Power Push to Strengthen India’s Transmission Network

Cabinet clears Green Energy Corridor Phase-III with 135 GW renewable evacuation capacity and 50 GWh battery storage

New Delhi, September 30, 2026. The Union Cabinet has approved a massive ₹1,86,405-crore Green Energy Corridor Phase-III programme, aimed at strengthening India’s intra-state power transmission infrastructure and enabling the evacuation of up to 135 GW of renewable energy across states and Union Territories.

The initiative, referred to as PM DHARA — Developing Harmonised and Accelerated Renewable Energy Access in the supplied report, is designed to address one of the key challenges facing India’s rapidly expanding renewable-energy sector: moving electricity generated from solar and wind-rich regions to the wider grid.

The official Cabinet release identifies the initiative as Green Energy Corridor Phase-III (GEC-III) and says it is targeted for completion by financial year 2032-33.

What is the programme designed to do?

The central focus of GEC-III is to upgrade and expand India’s intra-state transmission systems so that growing renewable-energy capacity can be integrated into the electricity grid more efficiently.

The scheme also includes 50 GWh of Battery Energy Storage Systems (BESS). These storage systems are intended to help manage fluctuations in renewable generation, transmission congestion, peak-hour curtailment and electricity demand during periods when solar power is not available.

Solar generation, for example, is concentrated during daylight hours, while wind generation can vary according to weather conditions. Large-scale storage can help the grid manage these variations by storing electricity when supply is high and making it available when required.

₹1.86 lakh crore investment package

The approved project outlay is divided into two major components:

• ₹1,36,378 crore for intra-state transmission infrastructure under GEC-III.
• ₹50,000 crore for deployment of 50 GWh of Battery Energy Storage Systems.

The Centre will provide ₹54,082 crore in financial support under the scheme. According to the government, this assistance is intended to offset intra-state transmission charges and help contain the cost of renewable electricity for consumers.

More than 51,000 circuit km of transmission lines

The programme is expected to significantly expand transmission infrastructure.

According to the government, the plan includes approximately 51,126 circuit kilometres of transmission lines and 2,28,903 MVA of substation capacity, along with the planned 50 GWh battery-storage capacity.

Together, these additions are intended to improve the ability of state-level grids to absorb and transport increasing quantities of renewable electricity.

Why does India need such a large transmission programme?

India’s renewable-energy capacity has expanded rapidly, but renewable generation is not necessarily located close to major centres of electricity demand.

Solar and wind resources are concentrated in particular regions, while electricity consumption is distributed across the country. This creates a transmission challenge: generation capacity can grow faster than the infrastructure required to carry that electricity.

The government has therefore been planning transmission infrastructure alongside renewable-energy expansion. Earlier Green Energy Corridor phases were designed to facilitate renewable-energy evacuation in states with high renewable-generation potential.

GEC-III represents a further expansion of that approach, with a much larger focus on intra-state networks and grid flexibility.

Battery storage becomes a key component

The 50 GWh BESS component is one of the notable features of the programme.

Battery storage can help address several operational issues associated with renewable energy. Excess electricity generated during periods of high renewable output can be stored and subsequently supplied during periods of lower generation.

The Cabinet says the storage component will help manage intermittency, transmission congestion, peak-hour curtailment and demand during non-solar hours.

This could become increasingly important as India’s electricity system incorporates larger quantities of solar and wind power.

How will the projects be implemented?

The implementation structure will differ depending on the type of transmission project.

New greenfield transmission projects under the intra-state component will be developed through Tariff-Based Competitive Bidding (TBCB).

Transmission service providers will participate under a Build-Own-Operate-Maintain (BOOM) model, under which they will build, own, operate and maintain the relevant assets.

Existing networks requiring strengthening or upgrading—classified as brownfield works—will be undertaken on a Cost-Plus Basis.

The State Transmission Utilities (STUs) will serve as the overall implementing agencies.

Part of a larger renewable-energy strategy

The new programme builds on India’s earlier Green Energy Corridor initiatives.

GEC-I and GEC-II were designed to develop intra-state transmission infrastructure in renewable-energy-rich states and facilitate the evacuation of renewable electricity. The government has previously said that transmission planning is being undertaken to integrate increasingly large volumes of renewable capacity into the national power system.

With GEC-III, the emphasis moves further towards strengthening state-level networks while adding large-scale battery storage to improve grid flexibility.

What could the investment mean for the power sector?

The government expects the programme to support the integration of renewable power, strengthen grid infrastructure and contribute to long-term energy security.

The Cabinet has also said the scheme is expected to generate direct and indirect employment in the power, manufacturing and construction sectors, while the expansion of battery storage could support growth in India’s domestic energy-storage industry.

The broader objective is to ensure that India’s growing renewable-energy capacity is matched by sufficient transmission and storage infrastructure.

With a ₹1.86 lakh crore outlay, 135 GW renewable-energy evacuation capability and 50 GWh of planned battery storage, GEC-III represents a major expansion of the infrastructure needed to connect renewable generation with India’s evolving electricity demand.

(SDNA)