Union Cabinet approves PM-DHARA scheme with ₹1.86 lakh crore outlay to strengthen intra-State transmission, evacuate 135 GW renewable energy and deploy 50 GWh battery storage.
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the PM-DHARA (PM-Developing Harmonized and Accelerated Renewable-energy Access) Scheme, a major initiative aimed at strengthening intra-State power transmission networks and facilitating the evacuation of up to 135 GW of renewable energy across States and Union Territories.
The scheme, targeted for implementation by FY 2032-33, has a total project outlay of ₹1,86,405 crore. It is designed to improve grid infrastructure, address transmission constraints and support the country’s growing renewable energy capacity.
A key component of PM-DHARA is the deployment of 50 GWh of Battery Energy Storage Systems (BESS). These systems will be installed at renewable energy developer or generator locations, as well as at other strategically important points in the power grid.
Battery storage is expected to help manage the intermittent nature of renewable sources such as solar and wind power. It can also help address transmission congestion and reduce curtailment during peak generation periods, while making electricity available during non-solar hours.
The initiative is expected to strengthen grid flexibility and improve the integration of renewable energy into State and Union Territory power networks.
Of the total outlay, ₹1,36,378 crore has been earmarked for the development of intra-State transmission systems under Green Energy Corridor Phase-III. Another ₹50,000 crore has been allocated for the development of 50 GWh of Battery Energy Storage Systems.
The scheme includes ₹54,082 crore in Central Financial Support. The assistance is intended to offset intra-State transmission charges, which could help contain the cost of renewable power and ultimately benefit electricity consumers.
Greenfield projects under the intra-State transmission component will be implemented through Tariff Based Competitive Bidding (TBCB). Brownfield projects involving network strengthening and upgradation will be undertaken on a Cost Plus Basis (CPB).
State Transmission Utilities will act as the overall implementing agencies. Under the TBCB mechanism, Transmission Service Providers will execute projects through the Build-Own-Operate-Maintain (BOOM) model.
The PM-DHARA scheme is also aligned with India’s broader goal of reaching 900 GW of installed non-fossil fuel capacity by 2035. By improving the ability of States and Union Territories to transmit renewable electricity, the scheme is expected to support long-term energy security and contribute to reducing the country’s carbon footprint.
The initiative is also likely to create employment opportunities across the power, manufacturing and construction sectors. Expansion of battery storage manufacturing and deployment could support the domestic energy storage industry, while grid operations, maintenance and management are expected to generate long-term skilled employment.
With its focus on transmission infrastructure and energy storage, PM-DHARA is positioned as a key component of India’s effort to build a more flexible and renewable-energy-ready power grid.
