BHUBANESWAR: Chief Minister Mohan Charan Majhi on Wednesday welcomed the Union cabinet’s approval of a Rs 14,500-crore viability gap funding (VGF) scheme for developing grid-scale energy storage capacity, describing it as a major step towards strengthening renewable energy infrastructure and ensuring round-the-clock power supply.
The announcement comes a day after Odisha secured investment proposals worth Rs 1.17 lakh crore for clean energy projects with a proposed generation capacity of 11,742 MW, including pumped storage projects with a combined capacity of 7,200 MW involving a proposed investment of Rs 48,863 crore, at the Bharat Renewable Energy Summit and Exhibition 2026 in New Delhi.
Taking to X, Majhi said the initiative, under the leadership of Prime Minister Narendra Modi, will support Battery Energy Storage Systems (BESS), Pumped Storage Projects (PSPs) and emerging storage technologies. The scheme will facilitate greater integration of renewable energy into the power grid while ensuring reliable and affordable round-the-clock electricity supply, he said.
The chief minister also highlighted the emphasis on domestic content in battery storage systems, saying it would promote indigenous manufacturing, reduce import dependence and strengthen India’s energy security and self-reliance.
Deputy chief minister and Energy minister KV Singh Deo also welcomed the decision, saying Odisha, committed to energy innovation and sustainable development, was prepared to contribute meaningfully to the national mission.
“The initiative will support the creation of robust infrastructure, driving investment, growth and prosperity, while strengthening India’s position in clean energy and energy resilience,” he said.
The VGF scheme envisages development of 60 GWh of Hydro Pumped Storage Plant capacity, 30 GWh of BESS capacity and 2 GWh through alternative energy storage technologies. The projects entail an estimated total investment of Rs 97,600 crore.
The financial support is expected to improve the viability of storage projects and accelerate the creation of large-scale energy storage infrastructure. Capacity will be allocated through tariff-based competitive bidding. Public and private sector distribution companies will be eligible for VGF support for battery and hydro-pumped storage projects, while alternative storage technology projects will be implemented by public and private sector entities.