India has approved a major ₹1.86 lakh crore renewable energy infrastructure programme aimed at strengthening the country’s electricity transmission network and supporting the integration of a rapidly expanding renewable-energy capacity.
The Union Cabinet approved the PM DHARA (Developing Harmonized and Accelerated Renewable Energy Access) scheme on September 30, 2026. The programme is designed to strengthen intra-state transmission systems, facilitate the evacuation of up to 135 GW of renewable energy, and support the deployment of 50 GWh of Battery Energy Storage Systems (BESS).
The decision comes as India continues to expand solar and wind power generation and faces the parallel challenge of ensuring that electricity generated from renewable sources can be transmitted and stored efficiently.
What Is the ₹1.86 Lakh Crore PM DHARA Scheme?
The PM DHARA programme represents a major investment in the infrastructure required to support India’s renewable-energy expansion.
According to details released following the Cabinet decision, the overall project outlay is ₹1,86,405 crore and the programme is targeted for completion by FY 2032-33.
The programme has two major infrastructure components:
- ₹1,36,378 crore for development and strengthening of intra-state transmission systems.
- ₹50,000 crore for deployment of 50 GWh of Battery Energy Storage Systems.
The Centre will provide ₹54,082 crore in financial assistance under the programme. The government says this support will help offset intra-state transmission charges and reduce the impact of these costs on electricity prices.
Programme Will Support Evacuation of 135 GW Renewable Energy
One of the central objectives of the initiative is to create enough transmission infrastructure to evacuate up to 135 GW of renewable electricity across states and Union Territories.
This is important because renewable-energy generation and electricity demand are not always located in the same regions. Areas with strong solar and wind potential can generate large amounts of electricity, while major consumption centres may be located hundreds of kilometres away.
A stronger intra-state transmission network can therefore help move electricity from generation points to the wider grid and ultimately to consumers.
The government has identified transmission infrastructure as an important requirement for the continued expansion of renewable energy. Reuters reported that the programme is intended to address the challenge of expanding transmission capacity alongside India’s growing clean-energy generation capacity.
₹50,000 Crore Battery Storage Component
Another major part of the programme is the planned deployment of 50 GWh of Battery Energy Storage Systems.
Battery storage is becoming increasingly important as India adds more solar and wind power to its electricity system. Solar generation, for example, is concentrated during daylight hours, while electricity demand also occurs during evenings and other periods when solar generation is unavailable.
Energy storage can help address this timing difference by storing electricity when generation is high and making it available when demand requires it.
Under the programme, battery systems can be deployed at renewable-energy generation sites or at other locations where they can provide greater grid flexibility. The systems are intended to help address issues including renewable-energy intermittency, transmission congestion, peak-hour curtailment and demand during non-solar hours.
Why Transmission Infrastructure Has Become Important
India’s renewable-energy capacity has expanded rapidly over the past decade. However, generation capacity alone is not sufficient to ensure that clean electricity reaches consumers.
Power must be transported through transmission networks, managed by grid operators and delivered through distribution systems.
This creates a growing need for investment in:
- High-voltage transmission lines
- Substations
- Grid management systems
- Battery storage
- Renewable-energy evacuation infrastructure
- Power-system flexibility
- Digital monitoring and control technologies
The latest programme focuses heavily on these supporting systems.
The Economic Times reported that the government expects adequate transmission capacity to become increasingly important as renewable generation rises, with transmission infrastructure needing to develop ahead of new renewable-energy projects.
Green Energy Corridor Phase III
The transmission component of the initiative is connected with Green Energy Corridor Phase III (GEC-III).
The programme will strengthen intra-state transmission infrastructure in areas where renewable-energy generation is increasing. The government has said the initiative will facilitate the evacuation of up to 135 GW of renewable electricity.
The Green Energy Corridor programme is intended to create the infrastructure required to integrate renewable generation into India’s electricity network.
With solar and wind capacity continuing to grow, the focus is increasingly shifting from simply adding generation capacity to creating the infrastructure needed to transmit, store and manage that electricity.
How the Scheme Will Be Implemented
The government has outlined different approaches for new and existing transmission infrastructure.
For greenfield intra-state transmission projects, the government plans to use Tariff-Based Competitive Bidding (TBCB). Transmission service providers selected through the competitive bidding process will build, own, operate and maintain the relevant assets.
For brownfield projects, involving the strengthening or upgrading of existing transmission infrastructure, implementation will take place on a cost-plus basis, with State Transmission Utilities playing an important role.
This approach is designed to combine competitive procurement for new projects with the upgrading of existing power infrastructure.
India’s 2030 Renewable Energy Target
The new programme comes against the backdrop of India’s wider clean-energy expansion.
According to Reuters, India currently has around 304 GW of non-fossil-fuel power capacity and is targeting 500 GW by 2030.
Meeting such a target requires not only renewable generation projects but also supporting transmission and storage infrastructure.
As more solar and wind projects come online, electricity networks will need to handle larger volumes of variable renewable generation. Battery storage and transmission upgrades can therefore become increasingly important parts of the country’s energy infrastructure.
Opportunities for India’s Energy and Infrastructure Sector
The ₹1.86 lakh crore programme could have implications beyond power generation.
Large-scale transmission and storage investment can create demand for companies involved in:
Power transmission equipment:
Transmission projects require equipment such as transformers, switchgear, conductors and other electrical infrastructure.
Engineering and construction:
Large transmission projects require engineering, procurement and construction capabilities, creating opportunities for infrastructure companies.
Battery energy storage:
The 50 GWh storage component could support the development and deployment of large-scale battery storage projects.
Renewable-energy technology:
Solar and wind developers may benefit from improved grid connectivity and additional infrastructure for evacuating electricity.
Grid technology:
As the power system becomes more complex, digital monitoring, grid-management and energy-management technologies can become increasingly important.
What the Programme Means for Renewable Energy Developers
For renewable-energy developers, one of the important challenges is ensuring that newly generated electricity has adequate transmission capacity.
A renewable-energy project can generate electricity only if there is sufficient infrastructure to transfer that electricity to the grid and ultimately to consumers.
The government’s latest programme is intended to address this infrastructure requirement.
Improved transmission capacity could also help reduce situations in which renewable electricity generation is constrained because the grid cannot accommodate the available power.
The Cabinet’s decision therefore links renewable-energy expansion with investment in the supporting power infrastructure required for large-scale deployment.
Battery Storage Could Play a Bigger Role
The 50 GWh battery storage target is another significant feature of the programme.
As India’s electricity mix becomes increasingly dependent on solar and wind power, storage can help balance periods of high and low renewable generation.
For example, solar power generation is generally strongest during the daytime. Electricity consumption, however, can remain high during evening hours after solar output declines.
Battery systems can potentially store surplus electricity and release it later, helping improve the flexibility of the electricity network.
The government has specifically linked the planned storage deployment with challenges such as intermittency, congestion and peak-hour requirements.
Impact on India’s Clean Energy Infrastructure
The latest Cabinet decision demonstrates the increasing importance of infrastructure in India’s renewable-energy strategy.
Earlier phases of the clean-energy transition focused heavily on increasing renewable generation. As the installed renewable base expands, the infrastructure needed to transmit and manage that electricity becomes increasingly important.
The new programme combines two elements:
Transmission: Moving renewable electricity efficiently across state networks.
Storage: Providing additional flexibility when renewable generation and electricity demand do not occur at the same time.
Together, these components are intended to support greater integration of renewable power into India’s electricity system.
A Major Investment in India’s Power Network
At ₹1.86 lakh crore, the PM DHARA programme represents a substantial investment in electricity infrastructure.
The ₹1.36 lakh crore transmission component is focused on expanding and strengthening intra-state networks, while the ₹50,000 crore battery-storage component addresses the need for greater flexibility in managing renewable power.
The programme’s targeted completion date of FY 2032-33 also places it within the period when India is expected to substantially increase its non-fossil electricity capacity.
Conclusion
India’s approval of the ₹1.86 lakh crore PM DHARA renewable energy programme marks a significant development in the country’s clean-energy infrastructure strategy.
The programme will allocate ₹1,36,378 crore toward intra-state transmission infrastructure and ₹50,000 crore toward 50 GWh of battery energy storage systems. It is designed to facilitate the evacuation of up to 135 GW of renewable energy across states and Union Territories.
The initiative comes at a time when India is expanding renewable-energy generation while simultaneously working to modernise the infrastructure needed to transmit and manage that electricity.
By combining transmission upgrades with large-scale battery storage, the programme aims to address two important challenges of the clean-energy transition: moving renewable electricity to consumers and managing electricity availability when solar and wind generation fluctuates.
For India’s renewable-energy, power-transmission, battery-storage and infrastructure sectors, the programme could create a large pipeline of projects through the coming years.
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