India funds 92 GWh storage and four domestic mineral plants
The measures target lower import dependence across clean-energy supply chains.
Overview
India will spend ₹14,500 crore from FY2026-27 to FY2030-31 on 92 of large-scale energy storage. The plan includes 60 of , 30 of batteries, and 2 of newer options. Storage will save power when solar and wind produce more, then release it when demand rises. Funding will cover part of projects’ early losses, and competitive bidding will select developers. The plan could bring ₹97,600 crore in total investment.
India also approved ₹2,814 crore to process lithium and nickel at home. Two plants for each material will receive a 30% subsidy on building costs for five years, subject to limits for each recipient. Together, the measures address changing renewable power supplies and reliance on overseas battery-material processing. They could strengthen local skills and reduce import risks, but success depends on companies finishing projects and running them at competitive costs.
Timeline
The twin Cabinet decisions linked more reliable renewable power with domestic clean-energy supply chains
can shift electricity from periods of strong solar or wind generation to periods of higher demand or weaker renewable output, supporting grid reliability. could reduce dependence on overseas processing capacity and strengthen capabilities for batteries and related technologies, although the Cabinet approvals alone do not establish that import dependence will fall.
The government offered a 30% capital subsidy with separate beneficiary caps for lithium and nickel
Eligible projects can receive a equal to 30% of eligible investment. Support is capped at ₹500 crore per and ₹900 crore per under the five-year programme.
The mineral scheme set targets for two lithium plants and two nickel plants
The plan provides for two lithium-processing plants with minimum capacity of 30 each and two nickel-processing plants with minimum capacity of 50 each. The targets are intended to create domestic processing capability for materials used in batteries and other clean-energy technologies.
The Cabinet approved ₹2,814 crore to expand domestic lithium and nickel processing
The separate will run for five years, from FY2026-27 to FY2030-31. It covers the processing of lithium and nickel ores and intermediate products into , including material sourced through mining or recycling.
The storage scheme assigned capacity through tariff-based competitive bidding
Storage capacity will be allocated through rather than through an undifferentiated grant programme. The mechanism is designed to select projects that can provide storage services at competitive tariffs while using public support to bridge financing gaps.
The government estimated ₹97,600 crore would be needed to build the planned storage capacity
The approved storage programme is expected to attract total investment of about ₹97,600 crore, including the ₹14,500 crore public funding component. Viability-gap funding is intended to help projects whose is high but whose early revenues may not be sufficient to make them commercially viable.
The Cabinet divided the storage target among pumped hydro, batteries and emerging technologies
The 92 GWh target includes 60 GWh of , 30 GWh of and 2 GWh using alternative storage technologies. The mix expands support beyond batteries to technologies that can shift electricity across different time periods.
The Union Cabinet approved ₹14,500 crore to develop 92 GWh of grid-scale energy storage
The Cabinet approved a scheme for storage capacity that has not yet been commissioned. The programme will run from FY2026-27 to FY2030-31 and is intended to support renewable-energy integration and improve power-system reliability.