EL7.AI
GeneralMedium•4 November 2026•
4 min read

India Approves 145 Billion Rupees to Develop 92 GWh of Energy Storage

Key Facts

1India’s Cabinet on November 4, 2026, approved 145 billion rupees for an energy storage program.
2The plan targets 92 GWh, with total costs estimated at 97,600 crore rupees, including 14,500 crore rupees in viability gap funding.
3The targeted capacity is divided into 60 GWh of pumped hydro storage, 30 GWh of batteries and 2 GWh of emerging technologies.
4Battery projects are subject to a minimum domestic content requirement of 40%.
5The Central Electricity Authority estimated a need for 336 GWh by 2029–30 and 411 GWh by 2031–32.

India’s Cabinet on November 4, 2026, approved an allocation of 145 billion rupees, or 14,500 crore rupees, for a program to develop energy storage projects in the country, Reuters reported, citing Information Minister Ashwini Vaishnaw. The plan targets adding 92 GWh of storage capacity, expanding the grid’s ability to absorb and store energy. The government estimates that developing this capacity will require total investment of about 97,600 crore rupees, including support allocated to bridge the viability gap. Federal funding will cover part of project costs, with implementing entities required to complete the investment. The program runs from fiscal year 2026–27 to fiscal year 2030–31.

The targeted capacity is divided into 60 GWh of pumped hydro storage, 30 GWh of battery energy storage systems and 2 GWh for emerging storage technologies, according to the Indian Express. Pumped hydro accounts for the largest share of the program, while the plan allocates about one-third of capacity to batteries. The share for emerging technologies allows other solutions to be included in the targeted storage mix. These components combine pumped storage projects, batteries and technologies not specified in detail in the coverage. The distribution gives developers and equipment suppliers multiple avenues to participate in implementing the plan.

Storage capacity will be allocated through competitive, tariff-based tenders, according to the Indian Express. The program allows public and private power distribution companies to access viability gap funding for battery and pumped hydro storage projects. Alternative storage technology projects may be implemented by public or private entities. The arrangement ties financial support to projects put out for competition, while opening implementation to more than one type of entity. It sets out how the allocated funding will flow to actual projects and storage capacity.

The plan requires battery projects to have a minimum 40% domestic content, according to the same report. The government said the requirement aims to encourage local manufacturing and reduce reliance on imported components. The condition sets a domestic benchmark for supported projects, alongside competition on tariffs. Battery funding is thus linked both to expanding capacity and to supporting suppliers and manufacturers in India. Based on the published information, the requirement does not extend to the other projects in the plan.

The new approval comes as the Power Ministry was implementing two earlier schemes to support the development of 43.8 GWh of battery storage, with combined financial assistance of 9,160 crore rupees, according to the Indian Express in a report published on November 4, 2026. In a parliamentary reply dated March 19, 2026, the ministry said the two schemes targeted the same capacity and that about 100 crore rupees had been disbursed during fiscal year 2025–26 up to that date. These figures show that battery support programs were in place before the latest funding was approved, while the new plan also covers pumped hydro and emerging technologies. The Central Electricity Authority also estimated a need for about 336 GWh of storage by 2029–30, rising to about 411 GWh by 2031–32. These estimated capacities are intended to integrate renewable energy reliably.

Government data dated June 30, 2026, show that pumped hydro storage projects under construction had a capacity of 15,870 MW and storage of 95,220 MWh. On the same date, battery storage under construction had a capacity of 15,754 MW and storage of 42,530 MWh. Batteries with a capacity of 11,747 MW and storage of 38,425 MWh had been awarded, while projects with a capacity of 19,192 MW and storage of 67,574 MWh were under tender. These figures provide a snapshot of projects under construction, awarded or tendered before the new program period begins. Indian rules also allow storage systems, subject to specified conditions, to participate in secondary and tertiary reserve services to support grid stability and reliable operations.

India’s use of viability gap funding for batteries dates to a scheme approved by the Cabinet on September 6, 2023. The Power Ministry said the scheme’s targeted capacity was raised from 4,000 to 13,200 MWh, while its financial allocation remained at 3,760 crore rupees. The ministry linked the capacity adjustment to lower battery prices, which allowed the target to be expanded within the approved allocation. In a separate development, the government on September 30, 2026, approved the third phase of the Green Energy Corridor, which includes 50 GWh of battery storage. The project’s total allocation is 1,86,405 crore rupees, including 54,082 crore rupees in central financial support, with completion targeted by fiscal year 2032–33.