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Green Energy Corridor-III

ICICIdirect Research 01 Oct 2026 DISCLAIMER

GEC-III approved with ₹1.86 lakh crore outlay: The Union Cabinet has approved Green Energy Corridor Phase-III (GEC-III) with a total outlay of ₹1,86,405 crore, targeted for completion by FY33. The scheme is designed to strengthen intra-state transmission systems (InSTS) and enable evacuation of up to 135 GW of renewable energy across states/UTs. 
₹1.36 lakh crore for intra-state transmission: Of the total outlay, ₹1,36,378 crore is earmarked for InSTS, while ₹50,000 crore is allocated for deployment of 50 GWh BESS. Thus, ~73% of the scheme outlay is towards transmission and ~27% towards storage. The BESS can be deployed at RE developer/generator sites or other grid-critical locations to address intermittency, congestion, peak-hour curtailment and non-solar-hour demand. 
₹54,082 crore Central Financial Support: The Centre will provide ₹54,082 crore of financial support. Importantly, this includes support to offset intra-state transmission charges, which is intended to contain the delivered cost of renewable power. The Centre’s support includes ₹45,005 crore for InSTS, ₹6,000 crore for BESS through VGF, ₹3,050 crore towards committed liabilities of earlier phases and ₹27 crore for programme management and grid studies.
Large transmission investment multiplier: The scheme is expected to unlock around ₹1.32 lakh crore of investment in the transmission system, in addition to the investment associated with the 135 GW RE evacuation requirement. This comes on top of India's broader transmission expansion plan: As per CEA, the 220 kV+ network is projected to increase from around 5.04 lakh ckm in February 2026 to 6.48 lakh ckm by FY32, while transformation capacity is expected to rise from 1,429 GVA to 2,345 GVA.
TBCB-led opportunity: All greenfield InSTS projects under GEC-III will be implemented through Tariff-Based Competitive Bidding (TBCB). Transmission Service Providers will participate under a Build-Own-Operate-Maintain (BOOM) model, while brownfield network strengthening and upgradation will be executed on a Cost-Plus Basis. State Transmission Utilities will act as the overall implementing agencies.
Storage becomes an integral part of the corridor: The 50 GWh BESS allocation is significant because GEC-III is not merely a transmission programme; storage is being deployed alongside the grid to improve utilisation of renewable power. The broader national plan (NEP) already envisages around 47 GW / 236 GWh of BESS by FY32.
Supports 900 GW non-fossil target: GEC-III is explicitly aimed at supporting India's 900 GW installed non-fossil capacity target by 2035. The broader grid plan is already designed to integrate >500 GW of non-fossil capacity by 2030 and >600 GW by 2032, making intra-state evacuation increasingly important as renewable generation expands. 
Earlier GEC phases focused on building renewable evacuation infrastructure in selected states. GEC-I and GEC-II cover 10 states and were designed to evacuate 44 GW of RE. GEC-III significantly increases the scale to 135 GW, shifting the focus towards strengthening the transmission network closer to renewable generation and load centres. 
The beneficiary universe extends across the value chain —

  • Transmission &EPC players: POWERGRID, Adani Energy Solutions, L&T, KEC International, Kalpataru Projects International and Techno Electric & Engineering.
  • Transformers, switchgear and grid equipment: GE Vernova T&D India, Hitachi Energy India, CG Power, Siemens Energy India and Transformers & Rectifiers.
  • Battery/storage players: such as Exide Industries, Amara Raja Energy & Mobility , ACME Solar and Waaree Energies. 

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