The initiative will strengthen India’s Intra-State Transmission System (InSTS) to enable the evacuation of up to 135 GW of renewable energy across States and Union Territories, according to a government statement.
The scheme also provides for the deployment of 50 GWh of Battery Energy Storage Systems (BESS) at renewable energy (RE) developer or generator sites, or at other strategically important locations, to enhance grid flexibility. The systems will help address intermittency, congestion and peak-hour curtailment, while meeting demand during non-solar hours.
The scheme will facilitate the integration of renewable energy into the grid and improve power evacuation within States and Union Territories.
The GEC-III scheme is targeted for completion by FY 2032-33, with a total project outlay of Rs 1,86,405 crore. Of this, Rs 1,36,378 crore has been earmarked for the development of Intra-State Transmission Systems under GEC-III, while Rs 50,000 crore will be allocated for the deployment of 50 GWh of BESS.
The scheme includes total Central Financial Support (CFS) of Rs 54,082 crore. The Central Financial Assistance (CFA) will help offset intra-state transmission charges, thereby keeping power costs lower. Government support is ultimately expected to benefit end users and consumers across the country.
All greenfield projects under the InSTS component will be implemented through the Tariff-Based Competitive Bidding (TBCB) route, while brownfield upgrades and network-strengthening works will be executed on a Cost-Plus Basis (CPB).
State Transmission Utilities will serve as the overall implementing agencies, while Transmission Service Providers (TSPs) will participate in projects under the TBCB mechanism through a Build-Own-Operate-Maintain (BOOM) model.
The scheme is expected to contribute to India’s target of achieving 900 GW of installed non-fossil fuel-based capacity by 2035. It will also strengthen the country’s long-term energy security and promote ecologically sustainable growth by helping reduce the carbon footprint.
The initiative is expected to generate significant direct and indirect employment in the power, manufacturing and construction sectors. The manufacturing and deployment of Battery Energy Storage Systems will further create employment opportunities in the domestic energy-storage industry.
The scheme will also support the creation of long-term skilled jobs in operations, maintenance and grid management across participating States and Union Territories.