भारत सरकार
GOVERNMENT OF INDIA
GOVERNMENT OF INDIA
विद्युत मंत्रालय
MINISTRY OF POWER
MINISTRY OF POWER
केंद्रीय विद्युत प्राधिकरण
CENTRAL ELECTRICITY AUTHORITY
CENTRAL ELECTRICITY AUTHORITY
VGF for Development of BESS:
Cabinet approved the Viability Gap Funding (VGF) scheme for development of Battery Energy Storage Systems (BESS) on 06.09.2023 which envisaged the development of 4000 MWh of BESS projects by 2030-31, with a financial support of up to 40% of the capital cost as a budgetary support in the form of VGF. The total outlay for this scheme is ₹9,400 crore, which includes a budgetary support of ₹3,760 crore.
However, a significant decline in battery prices provided a leverage to support the higher BESS capacity within the same budgetary support. Accordingly, Ministry of Power in 2024 has extended the VGF support for development of a total 13850 MWh BESS capacity under the CPSU, State component and Market component.
Furthermore, considering the requirement of ESS in the country, Ministry of Power vide order dated 09.06.2025 has extended the VGF support for development of additional BESS capacity of 30 GWh supported through Power System Development Fund (PSDF) with a total financial support of Rs. 5400 crores. It aims to provide VGF support @18 lakhs per MWh for the development 25 GWh BESS capacity allocated to 15 states and 5 GWh allocated to NTPC.
A. Market Component:
(i) Tranche-I: - 1000 MWh BESS capacity implemented by NVVN Ltd. with a VGF support of 30% of the Capital Cost or 46 lakhs/MWh, whichever is lower.
(ii) Tranche-II: - 1200 MWh BESS capacity implemented by SECI Ltd. with a VGF support of 30% of the Capital Cost or 27 lakhs/MWh, whichever is lower.
B. CPSU Component:
BESS capacity of 5000 MWh to be developed by NVVN, NHPC and SJVN with a VGF support of 30% of capital cost or 27 lakh/ MWh, whichever is lower.
| S.No. | CPSUs (BIA) | BESS capacity allocated (MWh) |
|---|---|---|
| 1. | NVVN | 2000 |
| 2. | NHPC | 1500 |
| 3. | SJVN | 1500 |
| Total (CPSU component) | 5000 MWh |
C. State Component:
(i). BESS capacity of 5520 MWh under State component to 8 states with a VGF support of 30% of capital cost or 27 lakh/ MWh, whichever is lower.
(ii). BESS capacity of 1130 MWh has been allocated to UP-MP Joint BESS (Uttar Pradesh – Madhya Pradesh Joint BESS)
| S.No. | State | BESS capacity allocated (MWh) |
|---|---|---|
| 1. | Rajasthan | 1000 |
| 2. | Maharashtra | 500 |
| 3. | Karnataka | 1000 |
| 4. | Gujarat | 1000 |
| 5. | Tamil Nadu | 1000 |
| 6. | Bihar | 500 |
| 7. | Kerala | 500 |
| 8. | Haryana | 20 |
| 9. | Uttar Pradesh - Madhya Pradesh Joint BESS (UP-MP Joint BESS) | 1130 |
| Total | 6650 MWh |
D. PSDF Component:
BESS capacity of 30,000 MWh under this component to 15 states and NTPC. This includes 25 GWh allocation to 15 states and 5 GWh to NTPC with a VGF support of 18 lakhs per MWh.
| S.No. | State/Entity | BESS capacity allocated (MWh) |
|---|---|---|
| 1. | Rajasthan | 4000 |
| 2. | Gujarat | 4000 |
| 3. | Maharashtra | 4000 |
| 4. | Tamil Nadu | 1500 |
| 5. | Karnataka | 2000 |
| 6. | Andhra Pradesh | 2000 |
| 7. | Madhya Pradesh | 1500 |
| 8. | Telangana | 1500 |
| 9. | Uttar Pradesh | 1500 |
| 10. | Haryana | 500 |
| 11. | Kerala | 500 |
| 12. | Punjab | 500 |
| 13. | Chhattisgarh | 500 |
| 14. | Odisha | 500 |
| 15. | Uttarakhand | 500 |
| 16. | NTPC | 5,000 |
| TOTAL | 30,000 MWh |
