₹5,400 cr VGF announced for battery storage

Union minister for power Manohar Lal on Tuesday said the government will roll out an additional viability gap funding (VGF) worth ₹5,400 crore for setting up 30 GWh of battery energy storage systems (BESS).

- Rituraj Baruah

Addressing journalists, the minister announced several plans to meet rising power demand and achieve India's ambitious net zero target of 2070. The incentive will be over and above the existing incentive worth ₹3,700 crore VGF under which 13.2 GWh of BESS is currently under implementation.

The initiative will attract investments worth ₹33,000 crore, he said. Under the scheme, 15 states will receive allocations for 25 GWh of storage capacity and state-run NTPC Ltd will get 5 GWh.