Centre Clears ₹21,838 Crore Green Energy Corridor Phase-III Transmission Expansion for Andhra Pradesh
The Centre has approved a ₹21,838 crore expansion of the power transmission network in Andhra Pradesh under the Green Energy Corridor Phase-III (GEC-III) scheme. The work includes high-capacity transmission lines and new substations to meet rising electricity demand. The target is completion within five years.
Funding for the Andhra Pradesh component comprises a central grant of about ₹7,207 crore, roughly 33% of the project cost. The remaining ₹14,631 crore will be raised as loans by AP Transco. The state transmission utility is expediting preparations to strengthen the grid.
The work will focus on evacuating and integrating solar and wind power generated in the Rayalaseema region and other high-potential green zones into the main grid.
GEC-III is a national scheme to strengthen the Intra-State Transmission System (InSTS). It is designed to enable evacuation of up to 135 GW of renewable energy across states and union territories. It also provides for 50 GWh of Battery Energy Storage Systems (BESS), deployed at renewable developer or generator ends or other locations important for grid flexibility.
The national scheme is targeted for completion by FY 2032-33 with a total outlay of ₹1,86,405 crore. This comprises ₹1,36,378 crore for InSTS development and ₹50,000 crore for BESS. Central Financial Support totals ₹54,082 crore.
Greenfield InSTS projects will be implemented through Tariff Based Competitive Bidding (TBCB). Transmission Service Providers will participate under a Build-Own-Operate-Maintain (BOOM) model. Brownfield upgradation and network strengthening works will be executed on a Cost Plus Basis. State Transmission Utilities are the overall implementing agencies.
