Central government approves Rs 54 billion VGF for 30 GWh BESS

The central government has approved a viability gap funding (VGF) scheme of Rs 54 billion to support the development of 30 GWh of battery energy storage systems (BESS). The initiative is expected to attract investments worth Rs 330 billion and help meet India’s energy storage requirements by 2028. This is in addition to 13.2 GWh of BESS already under implementation. To further strengthen transmission infrastructure, the government plans to roll out ultra-high voltage alternating current transmission systems. Nine 1,100 kV lines have been identified for development by 2034, with testing facilities being developed by the Central Power Research Institute. Additionally, the compensation structure under the right of way (RoW) rules has been revised. Compensation for tower base area has been increased from 85 per cent to 200 per cent of land value, and for the RoW corridor from 15 per cent to 30 per cent.