The Union Cabinet approved the Green Energy Corridor Phase-III (GEC-III) on September 30, 2026, with an overall outlay of Rs. 1.9 tn, according to a Nomura report. The programme is intended to strengthen India’s transmission network and support the integration of renewable power into the national electricity system.

Around Rs. 1.4 tn of the allocation is earmarked for the Intra-State Transmission System, while Rs. 500 bn is planned for Battery Energy Storage Systems (BESS). GEC-III aims to evacuate 135 gigawatts (GW) of renewable energy and deploy 50 gigawatt-hours (GWh) of battery storage by FY33.

Nomura said the scale of the programme could increase demand for transmission equipment, substations and battery storage solutions. It identified GE Vernova T&D India, Hitachi Energy India and CG Power and Industrial Solutions as its preferred companies in the capital goods sector, citing greater visibility from the proposed investment cycle.

The brokerage noted that GEC-III is substantially larger than the first two phases of the Green Energy Corridor. The first phase targeted the integration of 24 GW of renewable energy across eight states and largely achieved its revised objectives after its completion deadline was extended to March 2023. The extension was partly associated with the Covid-19 pandemic.

Execution remains a key consideration. Under the second phase, 73 of 91 packages had been tendered and 67 awarded by December 2025, but states had not reported any renewable energy projects being connected under the programme. Nomura said the latest phase would involve significant additions of transmission lines and substations, while greenfield projects would be awarded through the tariff-based competitive bidding route. The timing of tenders, project awards and commissioning will determine how quickly the proposed spending becomes orders for equipment manufacturers.