SchemesSaturday, 7 November 2026·The Hindu - Economy
Cabinet clears ₹14,500 crore VGF scheme for 92 GWh grid-scale energy storage, 2026-31
The Union Cabinet approved a ₹14,500 crore VGF scheme for 92 GWh of grid-scale energy storage during 2026-27 to 2030-31.
Key highlights
Direct fact
In November 2026, the Union Cabinet approved a ₹14,500 crore Viability Gap Funding (VGF) scheme to create 92 GWh of grid-scale energy storage capacity in India during 2026-27 to 2030-31.
Key specifics
- The scheme targets 92 GWh of fresh, yet-to-be-commissioned energy storage capacity across India.
- It covers 60 GWh of hydro pumped storage plant (PSP) capacity, 30 GWh of battery energy storage system (BESS) capacity and 2 GWh of alternative technologies.
- The government estimates total investment at ₹97,600 crore for the storage projects.
- The support is meant to help meet 411 GWh of grid-scale ESS capacity by 2031-32.
- BESS projects will have a minimum Domestic Content Requirement (DCR) of 40% to promote indigenous manufacturing.
Exam lens
Scheme-based MCQ, VGF = Viability Gap Funding, 2026-27 to 2030-31, 92 GWh, 60 GWh PSP, 30 GWh BESS, 40% DCR; TNPSC may ask the objective, capacity split and the role of domestic manufacturing.