Union Cabinet Approves Rs. 3,499 Crore VGF Scheme For 4,000 MWh BESS

Energy Storage Sector News India

The Union Cabinet has approved a Rs. 3,499 crore viability gap funding (VGF) programme to support deployment of battery energy storage systems with an aggregate target of 4,000 MWh. The scheme provides phased disbursements linked to project milestones across two phases over five and seven years. Project design includes selection criteria, VGF disbursement modalities, procurement frameworks, technical standards for BESS systems, integration with grid operations, O&M requirements and performance-linked payments to address tariff competitiveness and accelerate private investment in large-scale storage capacity.

Note: The above-mentioned news was first published by us in our ProjectX India | 1st November 2025 edition.. Do you want to buy this issue or our latest issue? If yes! click here

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