9 November 2026
ADVERTISEMENT
ADVERTISEMENT

India to Float 30 GWh BESS Tender Backed by ₹5,400 Cr VGF to Meet 2028 Clean Energy Targets – Details Inside

Power Ministry Launches Major Battery Storage, Hydro, and Grid Reform Initiatives. Ministry Extends ISTS Waiver, Rolls Out Major Transmission, Storage, and Hydro Expansion Measures
Manohar Lal Khattar
Indian Masterminds Stories

New Delhi: In a significant push toward renewable energy (RE) integration and energy storage, the Ministry of Power announced it will issue a tender for 30 GWh of Battery Energy Storage Systems (BESS) within the next three months. This landmark initiative is supported by a ₹5,400-crore viability gap funding (VGF) scheme, offering ₹18 lakh per megawatt-hour, to help accelerate the deployment of grid-scale energy storage.

Combined with the 13.2 GWh already under implementation, the new round of tenders is expected to attract ₹33,000 crore in investments, helping India meet its energy storage needs by 2028, said Union Minister Manohar Lal Khattar during a press briefing.

ISTS Charges Waived for Storage Projects Until 2028
To lower project costs and incentivize adoption, the government has extended the waiver of Inter-State Transmission System (ISTS) charges for all BESS and pumped storage projects (PSPs) commissioned on or before June 30, 2028.

The waiver includes–

  • 100% exemption for hydro PSPs awarded construction contracts before the same date.
  • Full waiver for co-located BESS projects, if electricity is consumed outside the state of generation.

Currently, 5.4 GW of PSP capacity has been awarded, with total PSP capacity under execution reaching 10 GW across eight projects, and 2.5 GW more under bidding.

Strengthening Grid Infrastructure and Right-of-Way Compensation
To accommodate surging power demand and RE growth, the ministry approved transmission schemes covering 9,250 circuit kilometers (ckm) to evacuate 63 GW of power, worth ₹65,000 crore.

In total, 44 ISTS projects spanning 22,050 ckm with a handling capacity of 109 GW were awarded—valued at ₹1.46 lakh crore. During FY 2024–25 alone, 9,059 ckm of lines (220 kV and above) were commissioned, raising the national network length to 4.95 lakh ckm.

To address land acquisition delays, Right of Way (RoW) compensation has been raised-

  • Tower area compensation: Now 200% of land value (up from 85%)
  • Corridor compensation: Raised to 30% (from 15%), based on market rates assessed by registered valuers.

States such as Delhi and Haryana have already implemented these revised norms.

Boosting Financial Reforms and Private Sector Participation
The Late Payment Surcharge (LPS) Rules have now been extended to intra-state transmission systems, promoting financial discipline and encouraging private investment in the state-level grid infrastructure.

Additionally, updated standard bidding documents now allow developers to furnish insurance surety bonds and payment-on-order instruments in tariff-based competitive bidding (TBCB) processes.

Power Demand & Generation Hit New Highs
India met a record peak power demand of 250 GW in May 2025, a substantial rise from 130 GW in 2014, with no peak shortages reported as of June 2025.

Key stats for FY 2024–25–

  • Electricity generation: 1,829 billion units (BU), up 5.2%
  • Installed capacity: 475 GW
  • Annual capacity addition: 34 GW (29.5 GW from RE, 5.17 GW from thermal)
  • Rural supply: 22.6 hours/day (vs 12.5 hours in 2014)
  • Urban supply: 23.4 hours/day

India Plans UHVAC Rollout by 2034
To future-proof the grid, the Power Ministry is developing ultra-high voltage alternating current (UHVAC) systems, planning nine 1,100 kV transmission lines and 10 substations by 2034. The Central Power Research Institute (CPRI) is leading testing infrastructure development, with projected investments of ₹53,000 crore.

Support for Hydro Projects and North East Infrastructure
Hydropower received a boost through–

₹12,461 crore outlay (Sept 2024) for transmission lines, rail sidings, and roads for 31 GW hydro capacity.

A special North East scheme (Aug 2024) for 15 GW capacity, with ₹750 crore per project in Central Financial Assistance (CFA).

Recent commissions include-

  • 800 MW Parbati-II, Himachal Pradesh
  • 250 MW Tehri PSP, Uttarakhand
  • 680 MW Punatsangchhu-II, Bhutan

Indian Masterminds Stories
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
JSSC CGL Recruitment
Jharkhand HC Restores JSSC CGL Recruitment, Protects Selected Candidates' Jobs
MP Mukhyamantri Registry Yojana
MP’s Dhediya Panchayat Opens Village-Owned Marriage Garden as 74,791 Rural Property Registrations Completed in Ujjain
Judge Manju Kumari Case
Supreme Court Protects Judicial Officer From 'Doubtful Integrity' ACR Remark
IPS Officer Trainees Kashmir Training (1)
21 IPS Officer Trainees Complete Five-Day CRPF Familiarisation Programme in Kashmir
IAS Aunjaneya Kumar Singh IAS Anjaneya Singh
IAS Officer Aunjaneya Kumar Singh Posted as OSD at Sikkim House After 11-Year Stint in UP
IAS Officer Lata Kumari
Who Is IAS Lata Kumari? Hassan DC Named in HD Kumaraswamy's ₹75 Lakh Bribery Allegations
IPS Malay Jain
Who is IPS Malay Jain? Author of ‘Dhaak Ke Teen Paat’ Appointed Balaghat SP, Gets Additional Charge of Hawk Force
Yogi Adityanath
From Forest Settlements to Revenue Villages: CM Yogi Adityanath to Celebrate Diwali With Van Tangiya Community, Unveil 52 Projects Worth ₹82 Crore
ADVERTISEMENT
ADVERTISEMENT
Videos
Five years after Kargil, India sent its cricketing heroes to Pakistan where terrorism posed a deadly threat. The man guarding them, former Special Director of Intelligence Bureau, Mr. Yashovardhan Azad, reveals what all went behind the scenes during that crucial tour. 
Trust No One, Said His Instinct in Pakistan
Gajendra Singh Shekhawat
How India Plans to Boost Tourism, Create Jobs and Ease Overcrowding : Gajendra Singh Shekhawat on the Road to 2047
Dr Saket Badola IFS
Beyond Tigers and Safaris: How Corbett Literature Festival Wants to Change the Conservation Conversation
ADVERTISEMENT
UPSC Stories
Aniket Sagar ICoAS
No Coaching, Full-Time Job and Two Attempts: How Aniket Sagar Cleared ICoAS
Aniket Sagar, a chartered accountant from Bundelkhand, cleared UPSC ICoAS 2025 after working at PwC,...
IDAS Himanshu Tembhekar
Should UPSC Aspirants Give Up Their Hobbies? IDAS Officer Himanshu Tembhekar Explains
Should UPSC aspirants give up their hobbies? IDAS officer Himanshu Tembhekar explains how hobbies help...
UPSC Story
He Taught Students to Meet Expenses. Today, Sachin Bhadouria is a Scientist ‘B’ at CWPRS
Sachin Bhadouria overcame financial challenges and a Hindi-medium background to secure AIR 2 in a UPSC...
CSR NEWS
NCL CSR Blood Bank Project
NCL Signs ₹1.16 Crore CSR MoU to Establish Blood Bank at District Hospital in Singrauli
The project will fund essential medical equipment, furniture and renovation of the existing building...
REC Foundation Solar Street Light
REC Foundation to Install 350 Solar Street Lights Across Six Districts of West Bengal to Improve Rural Safety 
The CSR initiative, undertaken in partnership with Y4D Foundation, aims to improve night-time safety...
nalco
NALCO Signs MoU with SDI Bhubaneswar to Provide Skill Training to 60 Youths in Odisha
The three-month CSR programme will benefit youths from villages near NALCO's Angul and Koraput complexes,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
JSSC CGL Recruitment
Jharkhand HC Restores JSSC CGL Recruitment, Protects Selected Candidates' Jobs
MP Mukhyamantri Registry Yojana
MP’s Dhediya Panchayat Opens Village-Owned Marriage Garden as 74,791 Rural Property Registrations Completed in Ujjain
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Five years after Kargil, India sent its cricketing heroes to Pakistan where terrorism posed a deadly threat. The man guarding them, former Special Director of Intelligence Bureau, Mr. Yashovardhan Azad, reveals what all went behind the scenes during that crucial tour. 
Gajendra Singh Shekhawat
Dr Saket Badola IFS
ADVERTISEMENT
ADVERTISEMENT