The Union Cabinet has approved the ₹1.86 lakh crore PM-DHARA scheme, formally known as the Green Energy Corridor Phase-III (GEC-III), to strengthen India’s intra-state power transmission network and support the integration of renewable energy.
The scheme is designed to facilitate the evacuation of up to 135 GW of renewable energy across states and Union Territories. It will also include 50 GWh of Battery Energy Storage Systems (BESS) to improve grid flexibility and help manage challenges associated with renewable power generation.
The government has targeted completion of the scheme by the financial year 2032-33. The initiative is intended to support the expansion of India’s non-fossil power capacity and strengthen the transmission infrastructure needed to integrate more renewable electricity into the grid.
₹1.86 Lakh Crore Investment Under the Scheme
The total project outlay has been set at ₹1,86,405 crore. Of this, ₹1,36,378 crore has been earmarked for developing the Intra-State Transmission System (InSTS) under GEC-III.
Another ₹50,000 crore has been allocated for deploying 50 GWh of Battery Energy Storage Systems.
The scheme also includes Central Financial Support of ₹54,082 crore. According to the government, this assistance will help offset intra-state transmission charges and keep power costs lower for end users.
How the Transmission and Storage System Will Work
The new infrastructure will strengthen power transmission within states and Union Territories and help move renewable electricity from generation locations to areas where it is required.
The 50 GWh BESS component will provide additional grid flexibility. It is intended to help address issues such as intermittent renewable generation, transmission congestion, peak-hour curtailment and electricity demand during non-solar hours.
State Transmission Utilities will serve as the overall implementing agencies. Greenfield transmission projects under the InSTS component will be developed through the Tariff Based Competitive Bidding (TBCB) route, while brownfield upgrades and network-strengthening works will be undertaken on a Cost Plus Basis.
Transmission Service Providers will participate in TBCB projects under the Build-Own-Operate-Maintain (BOOM) model.
Employment and Long-Term Energy Impact
According to the government, the scheme is expected to support the target of achieving 900 GW of installed non-fossil capacity by 2035.
The programme is also expected to contribute to long-term energy security and sustainable growth by supporting the integration of renewable power and reducing the carbon footprint.
The government said the investment will generate direct and indirect employment in the power, manufacturing and construction sectors. The deployment and manufacturing of battery storage systems is also expected to create opportunities in the domestic energy-storage industry.
In addition, the scheme is expected to create skilled employment in areas such as power-system operation, maintenance and grid management across participating states.
Disclaimer: This article is based on information released by the Government of India on the PM-DHARA/GEC-III scheme. Project costs, implementation timelines and other details are subject to official notifications and subsequent updates. Readers should refer to the latest government releases for any changes to the scheme.