Financial Commitment and Timeline
The Ministry of Power announced that the Viability Gap Funding (VGF) scheme will provide a total of ₹14,500 crore over the fiscal years 2026‑27 to 2030‑31. This funding is earmarked to enhance the financial viability of large‑scale energy storage projects across India, ensuring that the capital costs are offset and projects can be executed within a competitive framework.1
Target Capacity and Project Mix
The scheme aims to add 92 GWh of energy storage capacity that is yet to be commissioned. The planned mix includes 60 GWh of hydro pumped storage, 30 GWh of battery energy storage systems (BESS), and 2 GWh of emerging storage technologies, with an estimated investment of ₹97,600 crore.1
Competitive Allocation and Eligibility
Capacity will be allocated through a tariff‑based competitive bidding process. Both public and private sector electricity distribution companies are eligible for VGF support for BESS and hydro PSP projects, while alternative technology projects will be implemented by public and private entities.1
Scope of reporting: This article draws on the cited official Cabinet release and does not independently establish project completion.1