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Cabinet approves Green Energy Corridor Phase-III for intra-State lines and batteries

By CAShorts DeskPublished Source: PIB (Cabinet release, 30 September 2026); DT Next

Cabinet approves Green Energy Corridor Phase-III for intra-State lines and batteries
Illustration (AI-generated)

The Union Cabinet on 30 September 2026 approved Green Energy Corridor Phase-III, a Rs 1,86,405 crore scheme to strengthen the Intra-State Transmission System (InSTS) and evacuate up to 135 GW of renewable power. It includes 50 GWh of Battery Energy Storage Systems, has Rs 54,082 crore of central support and is to be set up by FY 2032-33.

Syllabus: Prelims · Current Affairs & IR; Prelims · Environment & Ecology; GS3 · Infrastructure

Why it matters

A solar park developer gains little from a new plant if the State's lines cannot carry its power to towns and factories. When they cannot, the park is told to cut output at midday and clean electricity is lost, while the evening peak after sunset is met largely from thermal power plants. GEC-III pays for more intra-State lines and for batteries that hold midday solar power for non-solar hours. Because central money offsets intra-State transmission charges, part of the new network's cost stays out of household and business power bills. The larger question is whether the national grid can keep pace with India's clean-energy goals: the release says the scheme will help reach 900 GW of installed non-fossil capacity by 2035.

Prelims pointers

  • Electricity Act, 2003, Section 38: the Central Transmission Utility, notified by the Central Government, plans and coordinates the Inter-State Transmission System (ISTS).
  • Electricity Act, 2003, Section 39: the State Transmission Utility, notified by the State Government, plans and coordinates the intra-State transmission system.
  • Tariff regulators: the Central Electricity Regulatory Commission regulates inter-State transmission tariffs; State Electricity Regulatory Commissions set intra-State ones.
  • Electricity is Entry 38 of the Concurrent List (List III, Seventh Schedule): both Parliament and State Legislatures can make laws on it.
  • Tariff Based Competitive Bidding: the lowest bid for transmission charges wins, and the regulator adopts that tariff under Section 63 of the Electricity Act, 2003.
  • GW measures power, a rate of flow; GWh measures energy. A 50 GWh store could, for example, supply 12.5 GW for four hours.
  • Panchamrit, India's pledge at COP26 (Glasgow, 2021): 500 GW of non-fossil energy capacity by 2030 and net zero emissions by 2070.
  • India's NDC for 2031-35 (Cabinet approval, March 2026): 60% of installed electric power capacity from non-fossil sources by 2035, raised from the 2022 update's about 50% by 2030.

Practise a UPSC-style question

With reference to the Green Energy Corridor Phase-III scheme, consider the following statements:

1. It strengthens the Inter-State Transmission System to carry renewable power between States and regions.

2. State Transmission Utilities are designated as the overall implementing agencies for the scheme.

3. Its central financial assistance is meant to offset intra-State transmission charges and so keep power costs down.

Which of the statements given above is/are correct?

  1. (a) 1 and 2 only
  2. (b) 2 and 3 only
  3. (c) 1 and 3 only
  4. (d) 1, 2 and 3
Show the answer

Answer: (b) 2 and 3 only

1 is incorrect: GEC-III strengthens the Intra-State Transmission System (InSTS), the network inside each State and Union Territory; lines between States form the separate Inter-State Transmission System (ISTS). 2 is correct: the release names the State Transmission Utilities as the overall implementing agency. 3 is correct: the central financial assistance offsets intra-State transmission charges, keeping power costs down so that end users benefit.

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