Government Increases BESS Target to 14,000 MWh Amid Falling Prices

20 Mar 2025 CW Team

The Ministry of Power (MoP) has raised the Battery Energy Storage System (BESS) capacity target under the Viability Gap Funding (VGF) program from 4,000 MWh to 13,200 MWh, citing a decline in storage costs. All states and implementing agencies have been directed to award BESS contracts by June 2025, ensuring program completion by May 2027.

The expanded target includes allocations under three components:

Market Component: NTPC Vidyut Vyapar Nigam (NVVN) has been allocated 1,000 MWh under the first tranche, with a VGF of Rs 4.6 million/MWh. SECI will manage an additional 1,200 MWh under Market Mechanism Tranche-II, with a VGF of Rs 2.7 million/MWh.

State Component: 6,000 MWh has been allocated to Rajasthan, Tamil Nadu, Karnataka, Gujarat, Maharashtra, Telangana, Bihar, and Kerala, with a VGF of Rs 2.7 million (~$31,150)/MWh.

Central PSU Component: 5,000 MWh has been assigned to NVVN, NHPC, and SJVN, also with a VGF of Rs 2.7 million/MWh.

Bidding for 500 MW/1,000 MWh under Tranche-I was completed in October 2024, and NVVN signed the Battery Energy Storage Purchase Agreement in December. Under the State Component, awards have been issued for 2,500 MWh, covering 1,000 MWh in Gujarat, 500 MWh in Maharashtra, and 1,000 MWh in Rajasthan.

Initially, the VGF program aimed to support at least 4,000 MWh of BESS by 2028 with a capital subsidy of Rs 37.6 billion. Approved in September 2023 with a total allocation of Rs 94 billion, the program's operational guidelines were released in March 2024. VGF disbursement follows a structured five-tranche model, with 10% at financial closure, 45% at the commercial operation date (COD), and the remaining 45% distributed over three years post-COD.

(MERCOM)

Infrastructure Transport

15 Oct 2025

BMC Gets CRZ Nod For Rs 40 Million Gorai Bridge Rebuild

The Brihanmumbai Municipal Corporation (BMC) has secured Coastal Regulation Zone (CRZ) clearance for the reconstruction of the Poisar River bridge in Gorai, located in Mumbai’s western suburbs. However, the proposed demolition of the existing 100-metre bridge has sparked opposition from local residents, who claim it serves as the only direct access route between the Lower and Upper Koliwada areas. The three-decade-old bridge, situated within the CRZ buffer zone, was recently declared structurally unsafe following a civic audit. The BMC has sanctioned its reconstruction at an estimated cost ..

NHAI Completes Rs 15.9 Billion Four-Lane Stretch On ECR

The National Highways Authority of India (NHAI) has completed the four-laning of the 38 km Puducherry–Poondiyankuppam stretch, ending near Cuddalore, in a development that will cut travel time by up to two hours, according to a report by The New Indian Express. The upgraded section, built at a cost of Rs 15.9 billion under the Bharatmala Pariyojana Phase I, marks a major milestone in the ongoing East Coast Road (ECR) widening programme. The project promises a smoother, faster drive for motorists travelling towards Cuddalore, Chidambaram, Sirkazhi, and Nagapattinam. With this completion, 22..

Encroachments Delay Rs 1 Billion Ghatkopar Bridge Project

The construction of a new cable-stayed rail overbridge at Ghatkopar and the widening of the Andheri–Ghatkopar Link Road (AGLR) have been delayed due to the presence of nearly 250 encroached structures on both sides of the road. In response, Municipal Commissioner Bhushan Gagrani has directed officials to carry out a structural audit of the existing bridge over the railway line and enforce temporary restrictions on heavy vehicles to ensure public safety. The bridge, which starts at the Golibar Road junction near LBS Marg and extends up to the Eastern Express Highway (EEH), serves as a critic..