New Delhi: India is preparing to expand its green power transmission network as the Ministry of New and Renewable Energy (MNRE) is expected to seek Union Cabinet approval shortly for the third phase of the Green Energy Corridor, involving an investment of more than Rs 50,000 crore, according to two government officials, Mint reported.
The proposed third phase will strengthen intra-state transmission networks in renewable energy-rich States, including Gujarat, Rajasthan, Karnataka, Maharashtra and Andhra Pradesh. Most of the projects are expected to come up in Gujarat, followed by Rajasthan.
The expansion comes as the country’s rapid growth in solar and wind capacity has outpaced the ability of the power grid to transmit electricity, leading to renewable power being curtailed and creating a major challenge for India’s 2030 clean energy targets.
The proposal has already received approval from the Expenditure Finance Committee of the Finance Ministry and completed other requirements before being placed before the Cabinet, the officials said.
The scheme is expected to cover intra-state transmission systems in States with high renewable energy capacity as well as States where renewable energy markets are developing. Government support would help offset high costs and reduce tariffs, with the aim of eventually attracting private investment.
The proposed infrastructure will include new transmission lines as well as additional substations and improvements to existing transmission systems.
India has recorded electricity curtailment equivalent to 18% of average monthly solar generation of 13 terawatt hours (TWh), resulting in compensation payments.
“We are doing two things under the green energy corridor: developing new lines and also augmenting existing substations and transmission lines. The scheme will next be taken to the cabinet,” one government official said.
The second official said the scheme would cost more than Rs 50,000 crore and had received all approvals required before Cabinet consideration.
Transmission constraints threaten renewable growth
The growing gap between renewable power generation and transmission capacity has led to curtailment of solar and wind generation. India’s expansion of solar capacity, combined with limited transmission and electricity storage capacity, has also raised concerns about grid stability.
Industry participants said transmission capacity, rather than power generation, has become a major constraint for India’s energy transition.
Sanjeev Aggarwal, founder and executive chairman of Hexa Climate, said renewable power was already being curtailed because the grid could not evacuate all the electricity generated. He also said one in four inter-state transmission schemes was running at least a year behind schedule.
Aggarwal said an investment of more than Rs 50,000 crore for the third phase was appropriate and suggested implementing it through competitively bid public-private partnerships, with private developers taking responsibility for right-of-way risks and facing performance penalties.
He said the timing of projects would be critical, as transmission corridors need to be ready before the renewable energy plants they are intended to serve, rather than being completed later.
Aditya Malpani, senior director and regional head, business development (West) at AMPIN Energy Transition, said the proposed expansion was important to maintain the must-run status of renewable energy projects.
He said dedicated transmission corridors for renewable projects could help address curtailment faced by developers and support both the grid and distribution companies.
Third phase to target 135 GW of renewable energy
India’s Green Energy Corridor programme began in 2015 and includes both Inter State Transmission System (ISTS) and Intra State Transmission System (InSTS), along with renewable energy management centres, control infrastructure and storage systems.
Under the first phase, the intra-state transmission system required to evacuate 24 GW of renewable energy has been commissioned. The second phase, designed to evacuate around 20 GW, is under implementation and is expected to be completed by the end of FY27.
The first and second phases involve investments of around Rs 10,000 crore and Rs 12,000 crore, respectively.
India currently has 5,08,535 circuit km of transmission capacity.
MNRE Minister Pralhad Joshi recently said the government had begun planning the next phase of the Green Energy Corridor, covering 10,000 circuit km of transmission network to move large volumes of renewable power to consumption centres.
The Ministry recently announced that India’s non-fossil power generation capacity had reached 300 GW, led by solar power. This represents about 54% of the 500 GW non-fossil capacity target for 2030.
A report by Parliament’s Standing Committee on Energy, submitted on August 6, said MNRE was working to launch the third phase of the Green Energy Corridor in FY27, with a target of evacuating around 135 GW of renewable energy.
The Ministry told the committee that the scheme was being structured as a public-private partnership and would be implemented through tariff-based competitive bidding.
A report released in May by renewable energy think tank Ember said India’s renewable energy expansion was moving faster than its grid development.
During the first quarter of 2026, transmission constraints accounted for nearly two-thirds of renewable energy curtailment, at 300 GWh, the report said. It warned that the widening gap between rapid solar capacity addition and slower transmission expansion had become a major operational risk to India’s target of 500 GW of non-fossil electricity capacity by 2030.
The transmission challenge comes as distribution companies are selling renewable power on electricity exchanges at prices below their purchase rates. At the same time, several States, including Uttar Pradesh, Bihar, Assam and West Bengal, have signed coal-based power purchase agreements instead of purchasing cheaper green power.
India has achieved only about 80% of its annual transmission targets over the past five years. The government estimates that an additional 61,411 circuit km of inter-state transmission system capacity will be required by FY30.
