National 04 November 2026
Union Cabinet Approves ₹14,500-Crore VGF Scheme to Support 92 GWh Grid-Scale Energy Storage Capacity
Why in the News?
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a **₹14,500 crore Viability Gap Funding (VGF)** scheme to support the development of **92 Gigawatt-hours (GWh)** of grid-scale energy storage capacity across India.
Key Features / Major Points:
- Timeline & Target Distribution:
- Implementation Window: **FY 2026-27 to FY 2030-31**.
- Capacity Breakdown (Total 92 GWh):
- **60 GWh:** Hydro Pumped Storage Projects (**PSPs**)
- **30 GWh:** Battery Energy Storage Systems (**BESS**)
- **2 GWh:** Emerging Energy Storage Technologies
- Investment & Expansion Impact:
- Expected to attract an estimated investment of **₹97,600 crore**.
- Adds capacity equivalent to ~170% of India's existing grid-scale energy storage, contributing toward the national projection of **411 GWh required by 2031-32**.
- Domestic Content Requirement (DCR):
- BESS projects mandate a minimum **Domestic Content Requirement (DCR) of 40%** to encourage local manufacturing and reduce import reliance.
- Allocation Process:
- Capacity will be allocated via a transparent tariff-based competitive bidding process open to public and private electricity distribution entities.
---
Static GK Facts:
- Ministry of New and Renewable Energy (MNRE):
- Cabinet Minister: **Pralhad Joshi**.
- Viability Gap Funding (VGF):
- A financial grant provided by the government to support infrastructure projects that are economically justified but lack financial viability.
- National Renewable Energy Goals:
- Achieving 500 GW of non-fossil fuel capacity by 2030 and Net-Zero by 2070.
One-Liner Quiz (All Competitive Exams):
Q: What is the outlay approved by the Union Cabinet for the Viability Gap Funding (VGF) scheme to develop 92 GWh energy storage?
A: ₹14,500 Crore
Q: What minimum Domestic Content Requirement (DCR) has been mandated for Battery Energy Storage System (BESS) projects under this scheme?
A: 40%
Q: What is India's projected total grid-scale energy storage requirement by 2031-32?
A: 411 GWh
#EnergyStorage #UnionCabinet #VGFScheme #BESS #PumpedStorage #RenewableEnergy #CurrentAffairs #StaticGK