Cabinet clears ₹14,500cr scheme for 92GWh energy storage
What's the story
The Union Cabinet has approved a massive ₹14,500 crore funding scheme aimed at developing 92GWh of new grid-scale energy storage capacity across India. Information and Broadcasting Minister Ashwini Vaishnaw announced the decision, saying it will be implemented from 2026-27 to 2030-31. The move is part of a larger effort to bolster energy storage systems in the country.
Mineral processing
Capital expenditure support scheme for critical mineral processing
In a separate decision, the Cabinet approved a capital expenditure support scheme to promote critical mineral processing in India.
The ₹2,814 crore initiative will be implemented over five years from FY27 to FY31.
Vaishnaw said the move is aimed at strengthening India's critical mineral ecosystem and building domestic capabilities in this sector.
Strategic importance
Importance of critical minerals
Critical minerals like lithium, nickel, and cobalt are key inputs for lithium-ion batteries. These batteries power everything from smartphones to electric vehicles.
They are also vital for several strategic and emerging industries such as clean energy, electronics, and advanced manufacturing.
The new scheme is expected to help India reduce import dependence while strengthening supply chains in these sectors.
Manufacturing boost
India's energy transition and manufacturing ecosystem
The two recent approvals come as India intensifies efforts to strengthen its manufacturing ecosystem and accelerate its energy transition.
Currently, nearly 52% of India's energy needs are met through non-fossil fuel sources.
The new schemes are expected to further bolster these efforts by promoting clean energy storage and domestic mineral processing capabilities.