The Green Corridor Expands: ₹22,400 Cr for State Grids

The Union government is set to provide approximately ₹22,400 crore in financial assistance to states under Phase-III of the Green Energy Corridor (GEC-III), aimed at strengthening intra-state transmission infrastructure for renewable energy.

Announced in the FY26 Union Budget, GEC-III involves a total investment of ₹56,000 crore, with the Centre funding 40% of the cost. The scheme will primarily benefit Gujarat, Rajasthan, Karnataka, Maharashtra, and Andhra Pradesh—Gujarat leading with ₹29,000 crore worth of projects, followed by Rajasthan with ₹9,000 crore.

Designed to support India’s goal of 500 GW non-fossil energy capacity by 2030, GEC-III will accelerate grid readiness for clean energy integration. Phases I and II are already underway across 10 states with similar funding mechanisms.

The Ministry of New and Renewable Energy (MNRE) is currently finalising the project scope with stakeholder input due by May 2025. Officials highlight that the scheme aims to reduce infrastructure costs, lower electricity tariffs, and attract private investment in the renewable energy sector.

News by Rahul Yelligetti.