Union Cabinet approves VGF for development of BESS

The Union Cabinet has approved the scheme for viability gap funding (VGF) for the development of battery energy storage systems (BESS). The approved scheme envisages the development of 4,000 MWh of BESS projects by 2030-31, with a VGF budgetary support of up to 40 per cent of the capital cost. The VGF for the BESS will have an initial outlay of Rs 94 billion and this will include a budgetary grant of Rs 37 billion. The VGF will be disbursed in five tranches and will be linked with the various stages of the implementation of BESS projects.