Union Minister Anurag Thakur said that the government has sanctioned 3,760 crore for viability gap finance of up to 40 per cent of total capital cost to put up a 4,000 MWh battery energy storage system in the country

The entire Rs 3,760 crore viability gap funding (VGF) will be borne by the central government, the Information & Broadcasting Minister said while briefing the media about the Cabinet decisions.

The VGF will be released in five tranches till 2030-31 and help in creation of 4,000 MWh storage across the country.

The viability gap funding, Thakur said, will lead to an investment of Rs 9,500 crore.

About the progress of renewables, he said that the solar energy has increased from 2.6 GW in 2014 to 71 GW at present while wind energy has increased from 21 GW (in 2014) to 40 GW.

He told that India is meeting its 25% of energy demand from renewable energy, including from large hydro plants.

He explained that India needs to develop BESS (battery energy storage system) for making round-the-clock renewable energy supply possible.