New Delhi, Nov. 5 -- The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a Rs 14,500 crore Viability Gap Funding (VGF) scheme to support the development of 92 GWh of grid-scale energy storage capacity during FY 2026-27 to FY 2030-31.

The scheme will support 60 GWh of pumped storage projects, 30 GWh of battery energy storage systems (BESS) and 2 GWh of alternative energy storage technologies. The projects are estimated to involve a total investment of Rs 97,600 crore.

The funding aims to improve project viability and accelerate the deployment of storage infrastructure. The scheme is intended to support the integration of renewable energy into the grid and strengthen grid stability.

Energy storage capacity will be al...