PM DHARA: What is the Rs 1.86 lakh crore GEC-III scheme and why does it matter?

The latest market report highlights that The Union Cabinet has approved the Rs 1.86 lakh crore Green Energy Corridor Phase-III (GEC-III) or PM DHARA (Developing Harmonized and Accelerated Renewable Energy Access) scheme — to build transmission infrastructure for evacuating up to 135 GW of renewable power and deploy 50 GWh of battery storage.

The scheme is aimed at preparing India's power grid for a sharp gain in renewable energy capacity, particularly solar and wind, whose generation varies depending on sunlight and wind conditions.

Here is what the scheme means and why it matters.

What has the government approved?

The Cabinet has approved a total project outlay of Rs 1,86,405 crore for GEC-III, with the scheme targeted for completion by FY2032-33. Of the total:

* Rs 1,36,378 crore will be spent on strengthening intra-state transmission systems.

* Rs 50,000 crore will be used to deploy 50 GWh of Battery Energy Storage Systems (BESS).

* The Centre will provide Rs 54,082 crore in financial assistance.

The scheme will enable the evacuation of up to 135 GW of renewable power across states and Union Territories.

Why is more transmission capacity required?

India is rapidly adding renewable energy capacity, but generating electricity is only one part of the challenge. The power additionally needs to be transmitted to where it is required.

A presentation made during the Cabinet briefing stated renewable power could face curtailment without adequate transmission infrastructure. It stressed that transmission capacity needs to come up ahead of renewable-energy capacity addition.

This is particularly important for solar and wind power because their output changes with sunlight and wind conditions.

The government is as a result seeking to build transmission infrastructure ahead of new renewable projects so that electricity generated by these projects can be evacuated efficiently.

What role will battery storage play?

GEC-III will additionally backing the deployment of 50 GWh of battery storage.

The battery systems can be installed at renewable-energy generation sites or at other locations considered important for grid flexibility.

According to the Cabinet release, the storage systems are intended to address several challenges, including:

* Intermittency in renewable power generation

* Transmission congestion

* Electricity demand during non-solar hours

The storage capacity is as a result intended to help balance electricity supply and demand when renewable generation is not available at the same level.

How much renewable power will the corridor backing?

The government stated GEC-III will provide transmission infrastructure to evacuate up to 135 GW of renewable power across states and Union Territories.

India is targeting 500 GW of non-fossil fuel capacity by 2030, according to the presentation made by Union Minister Ashwini Vaishnaw.

The presentation stated the country is planning for around 786 GW by 2035-36, while the Cabinet release separately referred to a longer-term target of 900 GW of installed non-fossil capacity by 2035.

How will the transmission projects be implemented?

The implementation model will differ depending on whether the transmission infrastructure is new or existing.

All new or greenfield intra-state transmission projects under GEC-III will be awarded through tariff-based competitive bidding.

Transmission service providers selected through the bidding process will build, own, operate and maintain the assets. State Transmission Utilities will act as the overall implementing agencies.

Existing transmission networks that need to be upgraded or strengthened — referred to as brownfield projects — will be carried out on a cost-plus basis.

How will the Centre's financial assistance help?

The Centre will provide Rs 54,082 crore in financial assistance under the scheme.

According to the government, this assistance will help offset intra-state transmission charges and limit their impact on electricity costs for consumers.

Why is this important for India's renewable-energy propel?

India's renewable generation capacity is expanding rapidly, increasing the need for supporting grid infrastructure.

The official PIB backgrounder cited in the Cabinet briefing stated India's installed solar capacity had touched 162.15 GW as of June 30, 2026, compared with around 3 GW in 2014.

The expansion means the grid needs to handle increasingly large volumes of electricity generated from renewable sources.

GEC-III as a result expands the focus beyond simply adding renewable generation capacity. The government is additionally seeking to ensure that the electricity generated can be transmitted, stored and supplied when required.

What is the broader significance of GEC-III?

The scheme represents a significant expansion of India's Green Energy Corridor programme, which was originally designed to strengthen transmission networks in states with high renewable-energy potential.

With renewable generation expanding, the challenge is increasingly around integrating that power into the grid.

GEC-III addresses this through two key components: larger transmission capacity and battery storage.

The government's approach is to ensure that grid infrastructure keeps pace with renewable-energy additions, reducing the risk of curtailment and improving the ability of the power system to manage fluctuations in renewable generation.