The Ministry of Power (MoP) has instructed all states and implementing agencies to finalise the awarding of battery energy storage system (BESS) contracts by June 2025. This has been done to ensure the completion of the viability gap funding (VGF) programme by May 2027. The ministry informed that once contracts are awarded, the programme would require 18 to 24 months for implementation.
Due to a decline in BESS prices, the initial target of 4,000 MWh has been revised to 13,200 MWh under different components, including the market component, the state component, and the central public sector undertaking (CPSU) component.Under the market component, the first tranche includes 1,000 MWh allocated to NTPC Vidyut Vyapar Nigam Limited (NVVN) with a VGF of Rs 4.6 million per MWh.hile 1,200 MWh under Tranche-II has been assigned to Solar Energy Corporation of India with a VGF of Rs 2.7 million per MWh.
The state component includes 6,000 MWh distributed across Rajasthan, Tamil Nadu, Karnataka, Gujarat, Maharashtra, Telangana, Bihar, and Kerala, each receiving VGF support of Rs 2.7 million per MWh. Additionally, 5,000 MWh has been allocated to NVVN, NHPC Limited, and SJVN Limited under the CPSU component with the same VGF support.
