India’s government has approved a INR145bn (USD1.53bn) scheme to support the development of up to 92 GWh of new grid-scale energy storage systems (Indian government press release, 04/11/2026). The Viability Gap Funding (VGF) scheme aims to provide financial support during the FY2026-27 to FY2030-31 to 92 GWh of projects yet to be commissioned across the country.
According to the announcement, the scheme plans to allocate the capacity through tariff-based competitive bidding between public and private electricity distribution companies. The capacity is expected to be split in 60 GWh of pumped hydro storage projects, 30 GWh of BESS and 2 GWh of alternative storage technologies. BESS projects will be required to meet a minimum domestic content of 40%.
The government expects that the projects attract an overall investment of about INR976bn (USD10.4bn).
The target capacity of the scheme represents about 170% of India’s present grid-scale storage capacity, and supports the national objective to reach 411 GWh of grid-scale storage by FY2031-32.
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