India Approves INR 14,500 Crore to Back 92 GWh of Grid Storage

• India's Cabinet approved INR 14,500 crore of viability gap funding for 92 GWh of grid-scale energy storage through FY2030-31.
• Pumped hydro gets 60 GWh and batteries 30 GWh; battery projects must carry at least 40% domestic content.
• Capacity will be awarded in tariff-based auctions; the government sees INR 97,600 crore of investment.

India's Union Cabinet approved INR 14,500 crore of viability gap funding (VGF) for 92 GWh of new grid-scale energy storage on Nov. 4, the government said.

The money covers fiscal years 2026-27 to 2030-31. Pumped hydro takes the largest share, 60 GWh, followed by 30 GWh of battery energy storage systems (BESS) and 2 GWh of alternative technologies. Total investment is estimated at INR 97,600 crore. Capacity will be awarded through tariff-based competitive bidding. Public and private distribution companies can claim support for battery and pumped-storage projects. Battery projects must meet a minimum domestic content requirement of 40%.

The new capacity would equal 170% of India's present grid-scale storage, the Cabinet said, and help meet a requirement of 411 GWh by 2031-32.

The scheme in numbers

• 92 GWh in total: 60 GWh of pumped hydro, 30 GWh of BESS and 2 GWh of alternative storage technologies.
• INR 14,500 crore of VGF over five fiscal years, from 2026-27 to 2030-31.
• About INR 158 crore of VGF per GWh, averaged across all technologies (list.solar calculation).
• 15% of the estimated INR 97,600 crore investment would come as VGF (list.solar calculation).
• 22% of the 411 GWh of grid-scale storage India needs by 2031-32 would be covered by the 92 GWh (list.solar calculation).
• 0.5 GWh of the 13.8 GWh backed by India's first BESS VGF scheme was commissioned by July 23, 2026, the Ministry of Power told parliament.

The Ministry of Power already administers two VGF schemes for 43.8 GWh of batteries, it told the Lok Sabha on July 23. The first, approved in September 2023 with INR 3,760 crore of budget support, targeted 4 GWh. Falling battery prices stretched it to 13.8 GWh within the same outlay. A second scheme, started in June 2025, pays INR 5,400 crore from the Power System Development Fund for 30 GWh. Letters of award had been issued for 22.43 GWh of it by July, with financial closure reached for 5 GWh.

The release did not say how the money splits between batteries and pumped hydro, or when the first auctions will open.