Cabinet Clears Green Energy Corridor Phase-III With 50 GWh Storage
The Union Cabinet approved the Green Energy Corridor Phase-III scheme at an outlay of Rs 1,86,405 crore to carry up to 135 GW of renewable power within states.

Why in News
On 30 September 2026 the Union Cabinet approved the Green Energy Corridor Phase-III scheme for intra-state transmission with 50 GWh of battery storage at a total outlay of Rs 1,86,405 crore.
The Union Cabinet, chaired by the Prime Minister, approved the Green Energy Corridor Phase-III scheme, shortened to GEC-III. The scheme strengthens the Intra-State Transmission System (InSTS) so that as much as 135 Gigawatt of renewable power can be carried out of generating sites and into the grid within states and union territories. The Ministry of New and Renewable Energy steers the scheme.
Storage is built into the scheme
Alongside wires, GEC-III pays for 50 GWh of Battery Energy Storage Systems (BESS), placed at the renewable developer or generator end or at any other spot that matters for keeping the grid flexible. Storage is meant to answer four familiar problems of solar and wind power: supply that comes and goes, congestion on the network, power curtailed at peak hours, and demand during the hours when the sun is not shining.
What the scheme costs
| Head | Amount |
| Total project outlay | Rs 1,86,405 crore |
| Intra-State Transmission Systems | Rs 1,36,378 crore |
| Battery Energy Storage Systems (50 GWh) | Rs 50,000 crore |
| Central Financial Support | Rs 54,082 crore |
The target for completion is financial year 2032-33. Central Financial Assistance offsets intra-state transmission charges, which is how the government expects the scheme to hold down the price of power for the household at the end of the line.
How the work will be awarded
Every greenfield project under the transmission component goes through Tariff Based Competitive Bidding, abbreviated as TBCB. Brownfield upgrades and works that strengthen an existing network are handled on a Cost Plus Basis. State Transmission Utilities are the overall implementing agency, while Transmission Service Providers bid under TBCB on a Build-Own-Operate-Maintain model, known by the initials BOOM.
Why it matters for the climate target
The scheme is expected to help India reach an installed non-fossil capacity of 900 GW by 2035. The government also expects gains in long-term energy security and a smaller carbon footprint, together with direct and indirect jobs in power, manufacturing and construction. Making and installing batteries should add work in the domestic energy storage industry, and running, maintaining and managing the new grid assets should create lasting skilled employment in the states that take part.
Important Facts
| Scheme | Green Energy Corridor Phase-III (GEC-III) |
|---|---|
| Approved by | Union Cabinet, chaired by the Prime Minister |
| Ministry | Ministry of New and Renewable Energy |
| Renewable energy to be evacuated | Up to 135 GW across states and union territories |
| Battery storage | 50 GWh of Battery Energy Storage Systems (BESS) |
| Total outlay | Rs 1,86,405 crore |
| Central Financial Support | Rs 54,082 crore |
| Completion target | Financial year 2032-33 |
| Implementing agency | State Transmission Utilities; Transmission Service Providers bid under TBCB on a Build-Own-Operate-Maintain (BOOM) model |
| Linked target | 900 GW installed non-fossil capacity by 2035 |
Exam Point of View
Remember the scheme name (Green Energy Corridor Phase-III or GEC-III), the ministry (New and Renewable Energy), the renewable capacity it will evacuate (135 GW), the storage provided (50 GWh BESS), the outlay (Rs 1,86,405 crore) with its transmission and storage split, the Central Financial Support (Rs 54,082 crore), the completion year (FY 2032-33), the bidding routes (TBCB and Cost Plus Basis), the BOOM model, and the 900 GW non-fossil target for 2035.
Practice Questions
How much renewable energy is the Green Energy Corridor Phase-III scheme designed to help evacuate across states and union territories?
- A.Up to 85 GW
- B.Up to 135 GW
- C.Up to 250 GW
- D.Up to 500 GW
Show answer
Correct answer: B. Up to 135 GW
Explanation
The correct answer is up to 135 GW. GEC-III strengthens the Intra-State Transmission System precisely so that renewable power of this scale can be moved from where it is generated into the grid inside states and union territories. Option A is wrong because no such figure is attached to the scheme. Option C is wrong as well; it is a plausible-looking round number but does not describe the evacuation capacity that the scheme targets. Option D is wrong because the only far larger number tied to this decision is the separate goal of installed non-fossil capacity of 900 GW by 2035, which is a generation target for the whole country and not a transmission figure for this scheme. Along with the wires, GEC-III funds 50 GWh of Battery Energy Storage Systems to smooth out intermittency, congestion, curtailment at peak hours and demand during non-solar hours.
What is the total project outlay approved for the Green Energy Corridor Phase-III scheme?
- A.Rs 54,082 crore
- B.Rs 1,36,378 crore
- C.Rs 1,86,405 crore
- D.Rs 2,50,000 crore
Show answer
Correct answer: C. Rs 1,86,405 crore
Explanation
The correct answer is Rs 1,86,405 crore, the full outlay approved for the scheme. Option A is wrong because Rs 54,082 crore is the Central Financial Support inside that outlay, the money that offsets intra-state transmission charges and so keeps power costs down for consumers. Option B is wrong because Rs 1,36,378 crore is only the transmission slice, meant for developing Intra-State Transmission Systems under the scheme. Option D is wrong because no such figure belongs to this approval. The remaining Rs 50,000 crore of the outlay pays for 50 GWh of Battery Energy Storage Systems. The whole scheme is targeted to be in place by financial year 2032-33, with the Ministry of New and Renewable Energy steering it and State Transmission Utilities acting as the overall implementing agency.
Under GEC-III, greenfield intra-state transmission projects will be implemented through which route?
- A.Tariff Based Competitive Bidding
- B.Cost Plus Basis
- C.Nomination to central public sector undertakings
- D.Swiss challenge method
Show answer
Correct answer: A. Tariff Based Competitive Bidding
Explanation
The correct answer is Tariff Based Competitive Bidding, usually written as TBCB. Every greenfield project under the transmission component of GEC-III goes through this route, with Transmission Service Providers taking part on a Build-Own-Operate-Maintain model, abbreviated BOOM. Option B is wrong because the Cost Plus Basis is reserved for a different class of work, namely brownfield upgradation and jobs that strengthen an existing network. Option C is wrong because the scheme does not hand greenfield work to any undertaking by nomination; State Transmission Utilities are the overall implementing agency, but the projects themselves are bid out. Option D is wrong because no such method is part of this approval. The competitive route is one reason the government expects the scheme to keep transmission charges, and therefore consumer tariffs, in check.
The Green Energy Corridor Phase-III scheme is expected to support which national capacity target?
- A.500 GW installed non-fossil capacity by 2030
- B.900 GW installed non-fossil capacity by 2035
- C.450 GW installed solar capacity by 2040
- D.1,200 GW installed renewable capacity by 2047
Show answer
Correct answer: B. 900 GW installed non-fossil capacity by 2035
Explanation
The correct answer is 900 GW installed non-fossil capacity by 2035. The scheme is described as an aid to reaching that target, since new renewable capacity is of little use unless the power it makes can be carried to load centres. Options A, C and D name other combinations of capacity and year that are not part of this decision, and each mixes up either the quantity or the deadline. Beyond the capacity goal, the government expects GEC-III to add to long-term energy security and cut the country's carbon footprint. It is also presented as a source of employment: direct and indirect jobs in the power, manufacturing and construction sectors, fresh work in the domestic energy storage industry as batteries are made and installed, and lasting skilled jobs in operation, maintenance and grid management in the participating states.
Frequently Asked Questions
What is the outlay of the Green Energy Corridor Phase-III scheme?
Rs 1,86,405 crore in all, made up of Rs 1,36,378 crore for intra-state transmission and Rs 50,000 crore for 50 GWh of battery storage, with Central Financial Support of Rs 54,082 crore.
How much renewable energy will GEC-III help evacuate?
Up to 135 GW across states and union territories, by strengthening the Intra-State Transmission System. The scheme is targeted for completion by financial year 2032-33.
Which bidding route will greenfield transmission projects follow under GEC-III?
Tariff Based Competitive Bidding (TBCB), with Transmission Service Providers participating on a Build-Own-Operate-Maintain (BOOM) model. Brownfield upgrades follow a Cost Plus Basis.
Sources
- Cabinet approves Green Energy Corridor Phase-III scheme for Development of Intra-State Transmission System with Battery Energy Storage Systems (opens in a new tab) — Press Information Bureau
- Cabinet approves Green Energy Corridor Phase-III scheme for Development of Intra-State Transmission System with Battery Energy Storage Systems (opens in a new tab) — Press Information Bureau
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