The Union Cabinet on Tuesday approved a scheme providing Rs 14,500 crore in financial support to create an additional 92,000 MW of power storage capacity across the country. The scheme will run for five years, from the 2026-27 financial year to 2030-31.
According to a government press release, the total investment in the projects under the scheme is estimated at Rs 97,600 crore. The newly created capacity will be 170 percent higher than the current power storage capacity.
The release said that storing surplus electricity generated from solar and wind sources and using it during peak demand will improve the stability of power distribution. The scheme will also help provide uninterrupted power round the clock and reduce dependence on conventional power generation sources.
The Cabinet also approved an allocation of Rs 2,814 crore over the same five-year period to promote the extraction and refining of critical minerals such as lithium and nickel from their ores within the country. Under this scheme, four plants will be set up in India: two for lithium and two for nickel.
The government said the move will reduce import dependence in critical minerals and battery manufacturing and strengthen the domestic industry.
