Cabinet approves ₹1.86 lakh crore PM-DHARA scheme for green energy transmission

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the PM-DHARA (PM-Developing Harmonized and Accelerated Renewable-energy Access) Scheme to strengthen the Intra-State Transmission System and facilitate the evacuation of up to 135 GW of renewable energy across States and Union Territories.

The scheme also provides for deployment of 50 GWh of Battery Energy Storage Systems (BESS) at renewable energy developer or generator ends, or at other locations important for grid flexibility.

The BESS capacity is aimed at addressing challenges arising from renewable energy intermittency, transmission congestion and peak-hour curtailment, while helping meet electricity demand during non-solar hours. The scheme is expected to facilitate better grid integration and power evacuation within States and Union Territories.

The scheme is targeted for implementation by FY 2032-33 with a total project outlay of ₹1,86,405 crore. Of this, ₹1,36,378 crore has been earmarked for development of Intra-State Transmission Systems under Green Energy Corridor Phase-III, while ₹50,000 crore has been allocated for 50 GWh of Battery Energy Storage Systems.

The scheme involves total Central Financial Support of ₹54,082 crore. The Central Financial Assistance will help offset Intra-State transmission charges, thereby helping keep power costs lower and ultimately benefiting electricity consumers.

All greenfield projects under the Intra-State Transmission System component will be implemented through Tariff Based Competitive Bidding (TBCB), while brownfield upgradation and network strengthening works will be undertaken on a Cost Plus Basis (CPB).

The State Transmission Utilities will serve as the overall implementing agencies. Transmission Service Providers will participate in projects under the TBCB mechanism through the Build-Own-Operate-Maintain (BOOM) model.

The PM-DHARA scheme is also aimed at supporting India’s target of achieving 900 GW of installed non-fossil capacity by 2035. It is expected to contribute to long-term energy security and promote ecologically sustainable growth by helping reduce the country’s carbon footprint.

The scheme is expected to generate direct and indirect employment in the power, manufacturing and construction sectors. Expansion of BESS manufacturing and deployment is also expected to create employment opportunities in the domestic energy storage industry, while operation, maintenance and grid management will generate long-term skilled employment across participating States.

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