The Union Cabinet chaired by Prime Minister Narendra Modi, September 30, 2026, approved the Green Energy Corridor Phase-III (GEC-III) intrastate transmission system (InSTS) scheme. The tariff-based competitive bidding (TBCB) modality has been proposed for greenfield projects under the scheme.
This initiative will strengthen India’s intrastate transmission system (InSTS) to enable evacuation of up to 135 GW of renewable energy across states and UTs, a government release said.
BESS component
The scheme also provides for deployment of 50 GWh of battery energy storage systems (BESS) at the renewable energy (RE) developer/generator end or any other location of importance for grid flexibility to address intermittency, congestion, peak-hour curtailment and meet non-solar hour demand. The scheme will facilitate grid integration and power evacuation with in the States/UTs of India.
Target: FY33, Outlay: Rs.1.86 trillion
The scheme is targeted to be set up by FY33 (March 31, 2033) with total project outlay of Rs.1,86,405 crore, comprising Rs.1,36,378 crore for the development of InSTS projects under GEC-III and Rs.50,000 crore for the proposed 50-GWh of BESS capacity.
Central assistance
The scheme involves a total Central Financial Assistance (CFA) of Rs.54,082 crore that will help offset InSTS charges and thus keep the power costs down. Thus, the government support will ultimately benefit the end users – the citizens of India, the release noted.
TBCB for greenfield projects
All greenfield projects under the InSTS component will be implemented through the tariff-based competitive bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be executed under “cost-plus” basis. State transmission utilities will be the overall implementing agency, and transmission service providers (TSPs) will participate under TBCB on a build, own, operate & maintain (BOOM) model.
Overall objective
GEC-III will help in achieving the target of 900 GW installed non-fossil capacity by 2035. The scheme will also contribute to long term energy security of the country and promote ecologically sustainable growth by reducing carbon footprint. It will generate large direct & indirect employment in the power sector, manufacturing, and construction industries. BESS manufacturing and deployment will additionally generate employment in the domestic energy storage industry. The scheme will also generate long-term skilled employment in operation, maintenance, and grid management across participating states, the release added.
Featured photograph (source: Adani Energy Solutions Ltd) is for representation only