PM-DHARA The Union Cabinet on Wednesday approved the Rs 1,86,405 crore PM-Developing Harmonized and Accelerated Renewable-energy Access (PM-DHARA) Scheme to strengthen intra-state transmission networks and enable evacuation of up to 135 GW of renewable energy across States and Union Territories.
The scheme will also facilitate deployment of 50 GWh of Battery Energy Storage Systems (BESS), aimed at improving grid flexibility and addressing intermittency, transmission congestion, peak-hour curtailment and electricity demand during non-solar hours.
According to the government, the scheme will be implemented by FY2032-33 with a total project outlay of Rs 1,86,405 crore. This includes Rs 1,36,378 crore for developing Intra-State Transmission Systems (InSTS) under Green Energy Corridor-III (GEC-III) and Rs 50,000 crore for 50 GWh of BESS.
The Centre will provide Rs 54,082 crore as Central Financial Support (CFA) under the scheme. The government said the support will help offset intra-state transmission charges, which will help keep power costs down for end users.
50 GWh Battery Storage
The BESS capacity will be deployed at renewable energy developer or generator locations, or at other locations considered important for grid flexibility. The storage systems will help manage fluctuations in renewable generation and improve the availability of electricity during non-solar hours.
The scheme will strengthen grid integration and power evacuation within States and Union Territories. It is also intended to address transmission congestion and reduce renewable power curtailment during periods of peak demand.
All greenfield projects under the InSTS component will be implemented through Tariff Based Competitive Bidding (TBCB). Brownfield upgrades and network-strengthening works will be executed under the Cost Plus Basis (CPB) framework.
State Transmission Utilities will act as the overall implementing agencies, while Transmission Service Providers will participate in TBCB projects under a Build-Own-Operate-Maintain (BOOM) model.
Supports Renewable Energy Targets
The approval comes as India works towards its target of 500 GW of renewable energy capacity by 2030. The government said PM-DHARA will also contribute towards achieving 900 GW of installed non-fossil capacity by 2035.
The scheme is expected to generate direct and indirect employment across the power, manufacturing and construction sectors. BESS manufacturing and deployment will also create employment opportunities in the domestic energy storage industry.
The government said the initiative will generate long-term skilled employment in operations, maintenance and grid management across participating States. It is also expected to contribute to long-term energy security and support ecologically sustainable growth by reducing the country’s carbon footprint.
