Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a Viability Gap Funding (VGF) scheme of ₹14,500 crore for the development of 92 GW grid-scale energy storage systems for the period FY 2026-27 to FY 2030-31. This scheme aims to support the development of 30 GW Battery Energy Storage Systems (BESS), 60 GW Pump Storage Projects (PSP), and 2 GW emerging storage technologies, with a total estimated investment of ₹97,600 crore. This initiative is a significant step towards strengthening India’s power sector infrastructure, facilitating the widespread integration of renewable energy, ensuring reliable, affordable, and 24-hour power supply, and promoting domestic manufacturing of BESS to reduce import dependence. The scheme mandates a minimum 40% Domestic Content Requirement (DCR) for BESS projects to encourage indigenous manufacturing and create opportunities for Indian industry.
For Banking, SSC, and RBI Grade B aspirants, this development is crucial for understanding government policy and its economic implications. The approval of a ₹14,500 crore VGF scheme highlights the government’s commitment to energy security and renewable energy integration, which will lead to significant investment opportunities and credit growth in the power and manufacturing sectors, directly impacting banking operations and financial markets. Questions may arise on the scheme’s financial outlay, its duration, the specific technologies supported (BESS, PSP), the total estimated investment, and its role in achieving India’s energy goals and ‘Atmanirbhar Bharat’ vision, particularly concerning domestic manufacturing and import reduction, which are vital for economic stability and growth.
Source: PIB (Press Information Bureau)
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