Page 71 - Policy Economic Report - September 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

financial institutions, technology providers and investors. He emphasised the need for policy
certainty, streamlined approvals, improved ease of doing business, stronger Centre-State
coordination and better bankability of projects.

Shri Naik said that the Curtain Raiser Programme marks the beginning of an important national
conversation on how India can make fuller and smarter use of its Small Hydro Power potential. He
said the dedicated Small Hydro Power session at the Bharat Renewable Energy Summit & Expo 2026,
to be held from 2nd to 5th November 2026 at Bharat Mandapam, New Delhi, will provide an important
platform to deliberate on policy reforms, investment, financing, technology and partnerships.

The Secretary highlighted the long lead time in starting hydropower projects as a key challenge, noting
that delays in obtaining forest, environment and right-of-way clearances adversely impact timely
project execution. He said that while the Ministry of New and Renewable Energy (MNRE) has been
assured by the Ministry of Environment, Forest and Climate Change (MoEFCC) of timely clearances,
particularly for small hydropower projects, a mechanism should be developed to generate and
escalate alerts in cases of undue delays.

Emphasising the need to improve the bankability of small hydropower projects, the Secretary said
that their unique cash-flow profile necessitates access to long-term patient capital. He urged the
Indian Renewable Energy Development Agency (IREDA) to take the lead in working with banks and
multilateral development institutions, including the Asian Development Bank (ADB) and the World
Bank, to facilitate greater availability of patient capital for project developers.

14. Cabinet approves Green Energy Corridor Phase-III scheme for Development of Intra-State
Transmission System with Battery Energy Storage Systems

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Green Energy
Corridor Phase-III (GEC-III) scheme. This historic initiative will strengthen India’s Intra-State
Transmission System (InSTS) to enable evacuation of up to 135 Gigawatt (GW) of renewable energy
across States/ Union Territories.

The scheme also provides for deployment of 50 GWh of Battery Energy Storage Systems (BESS) at the
Renewable Energy (RE) developer/generator end or any other location of importance for grid
flexibility to address intermittency, congestion, peak-hour curtailment and meet non-solar hour
demand. The scheme will facilitate grid integration and power evacuation with in the States/UTs of
India.

The scheme is targeted to be set up by FY 2032-33 with total project outlay of Rs.1,86,405 crore,
comprising Rs.1,36,378 crore for the development of Intra-State Transmission Systems (InSTS) under
GEC-III, Rs.50,000 crore for 50 GWh of Battery Energy Storage Systems (BESS). The Scheme involves a
total Central Financial Support of Rs.54,082 crore. The Central Financial Assistance (CFA) will help in

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