Newsletter
The Union Cabinet has approved two schemes to strengthen India’s energy storage capacity and domestic critical mineral processing.
Let’s break it down: a ₹14,500 crore Viability Gap Funding (VGF) scheme will support the development of 92 GWh of grid-scale energy storage capacity.
Running from FY27 to FY31, it will support 60 GWh of pumped storage, 30 GWh of battery energy storage systems (BESS) and 2 GWh through emerging storage technologies. The projects are expected to attract ₹97,600 crore in investment.
Why it matters: the scheme will help integrate renewable energy into the grid, improve stability and support reliable, affordable power around the clock. It will also help India meet its projected storage requirement of 411 GWh by FY32.
The minerals push: separately, the Cabinet approved a ₹2,814 crore capital expenditure support scheme to promote critical mineral processing, also running from FY27 to FY31.
Lithium, nickel and cobalt are key inputs for batteries that power smartphones and electric vehicles. Critical minerals also support clean energy, electronics and advanced manufacturing.
Why India needs it: India remains entirely dependent on imports for lithium, cobalt and nickel, despite substantial domestic mineral resources.
Expanding domestic production and processing, alongside securing overseas supplies, could reduce India’s exposure to global supply disruptions and dependence on dominant suppliers.
