Govt to pump in Rs 5,400cr more as viability gap funding for battery storage systems

Bengaluru, June 27 (IANS) Union Minister for New and Renewable Energy Pralhad Joshi on Friday said that Prime Minister Narendra Modi-led government is planning to roll out an additional Rs 5,400 crore as viability gap funding to support the setting up of 30 GWh of battery storage systems in the country.

“This is over and above the Rs 3,700 crore already being given under the existing VGF scheme, through which 13.2 GWh of BESS projects are already being implemented,” the minister explained.

The minister was speaking at the inauguration of one of India’s largest Battery Energy Storage Systems (BESS) Manufacturing Facility in Bengaluru’s Bidadi Industrial Area.

Joshi termed the launch of the factory, as “a promise for cleaner energy, a promise for greater grid resilience and a promise for India’s leadership in the global energy storage market.”

While highlighting the target of 500 GW of non-fossil fuel capacity by 2030 set by Prime Minister Modi, the minister said that as more renewable energy comes into our grid, having reliable storage is more important than ever.

“The facilities like the one we are inaugurating today are so important. They are critical to turning our vision into reality. This BESS plant is truly a state-of-the-art establishment. With an annual manufacturing capacity of 5 GWh, it stands among the largest and most advanced BESS facilities in the country,” said the minister.

“Its fully automated cell-to-pack assembly line marks a shift towards precision-driven, high-quality production, with minimal human intervention but maximum efficiency and consistency,” he pointed out.

He expressed confidence that such systems will support grid stability, enable renewable integration, manage peak demand, and help maintain frequency regulation.

“As India rolls out the VGF scheme for battery storage and works with stakeholders across sectors to grow the storage market, having world-class manufacturing like this will be very important. It will help meet rising demand, reduce imports, and make our power grid more efficient,” he added.

The minister said that India’s renewable capacity was growing at a fast pace as 25–30 GW was being added every year. But without storage, this energy will either get wasted or the country will fall back on coal when renewables dip. BESS is the way to make the country’s grid strong, stable, and smart, he added.

“I believe that India can become a global manufacturing hub for BESS, from batteries and inverters to software and control systems. Between 2022 and 2032, India plans to add over 47 GW of battery storage capacity, with a total investment of around ₹3.5 lakh crore,” said the minister.

“The strong policy support by the Government, along with private sector investments, shows that India is serious about a renewable future. At the same time, we are building the storage systems needed to make that future stable and dependable,” he added.

--IANS

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