UNION CABINET APPROVES SCHEME TITLED VIABILITY GAP FUNDING FOR DEVELOPMENT OF BATTERY ENERGY STORAGE SYSTEMS
New Delhi(06/09/2023): The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the Scheme for Viability Gap Funding (VGF) for development of Battery Energy Storage Systems (BESS).
The approved scheme envisages development of 4,000 MWh of BESS projects by 2023-31, with a financial support of up to 40 percent of the capital cost as budgetary support in the form of VGF.
A watershed moment in the long list of pro-environment measures taken by the Government, the move is to bring down the cost of battery storage systems increasing their viability. Designed to harness the potential of renewable energy sources such as solar and wind power, the scheme aims to provide clean, reliable and affordable electricity to the citizens. The Cabinet has allocated Rs 3,760 crore for the scheme to boost the BESS manufacturing capacity in India.
This will be a 100 percent Central grant.
This was informed by Union Minister Anurag Thakur in a media briefing.
