43 GWh of BESS Supported Under VGF Scheme with INR 9,160 Cr Outlay: Power Minister
To strengthen grid reliability and accelerate the clean energy transition, the Ministry of Power launched the Viability Gap Funding scheme to support 43 GWh of Battery Energy Storage Systems (BESS), allocating INR 9,160 crore, stated Union Power Minister Manohar Lal during a high-level Consultative Committee meeting.
August 06, 2025. By Mrinmoy Dey
He was addressing a high-level Consultative Committee meeting which was attended by Shripad Yesso Naik, Minister of State of the Ministry of Power and New and Renewable Energy, Members of the Consultative Committee on Power from Lok Sabha and Rajya Sabha, senior officials from the Ministry, CPSUs, and experts from the Central Electricity Authority (CEA) to deliberate on India’s energy storage roadmap and future energy security.
Lal further added that the Inter-State Transmission System (ISTS) charges have been fully waived for BESS projects commissioning by June 2028 and PSP projects for which construction work is awarded by June 2028.
It was mentioned that in terms of Hydro PSP (Pumped Storage Plant), India already has an installed capacity of approximately 6.4 GW. India has a PSP potential of more than 200 GW. At present, approximately 8 GW is under construction and 61 GW is in various stages of planning and development.
Lal mentioned that India is committed to reducing the Emissions Intensity of its GDP by 45 percent by 2030 from the 2005 level, and achieve 50 percent cumulative installed capacity from non-fossil fuel-based energy resources by 2030.
The Minister remarked that RE should be promoted coupled with energy storage systems in order to ensure the reliability of the supply of power, for storing excess energy available from RE sources to be used at other times of the day.
The Minister of State of Power and New and Renewable Energy, Shripad Yesso Naik, highlighted India’s remarkable achievement of reaching 50 percent of installed electricity capacity from non-fossil fuel sources—five years ahead of the 2030 target.
He emphasised that while renewable energy (RE) sources like solar and wind have driven this transition, the backbone of a reliable, flexible, and modern power system will increasingly rely on Energy Storage Systems (ESS).
The Minister of State reiterated the multifaceted role of ESS, not just in generation but across the energy value chain—from transmission and distribution to ancillary services and EV integration. He called on all stakeholders to continue their support for building a resilient, affordable, and sustainable energy future for India.
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