Cabinet approves ₹14,500 crore energy storage VGF scheme, critical minerals push

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹14,500 crore Viability Gap Funding (VGF) scheme to develop grid-scale energy storage systems, alongside a ₹2,814 crore capex support scheme for critical mineral processing, a ₹4,371.10 crore statistical transformation programme, and the continuation of Fast Track Special Courts for another five years.

The energy storage scheme, to run from FY27 to FY31, will support the development of 92 GWh of energy storage capacity that is yet to be commissioned. The government said this would add capacity equivalent to 170% of India's present grid-scale energy storage capacity and help the country meet its estimated requirement of 411 GWh by 2031-32.

₹97,600 crore investment planned for energy storage

The scheme envisages the development of 60 GWh of hydro pumped storage plant (PSP) capacity, 30 GWh of battery energy storage systems (BESS) and 2 GWh through alternative energy storage technologies.

The total investment under the programme is estimated at ₹97,600 crore, with VGF support aimed at improving project viability and accelerating the rollout of large-scale storage infrastructure.

Energy storage capacity will be allocated through a tariff-based competitive bidding process. Public and private sector electricity distribution companies will be eligible for VGF support for BESS and hydro PSP projects, while alternative energy storage projects can be implemented by public and private sector entities. The initiative is expected to strengthen India's power infrastructure by facilitating greater integration of renewable energy and addressing the variability of solar and wind generation.

The government has also linked the scheme to its push for domestic manufacturing. BESS projects will have to meet a minimum Domestic Content Requirement of 40%, aimed at encouraging local manufacturing, reducing import dependence and complementing existing supply-side incentives for battery production.

The government said the scheme would help build a more flexible and resilient electricity system, improve grid stability and strengthen India's long-term energy security while supporting the broader Atmanirbhar Bharat and Viksit Bharat objectives.

₹2,814 crore scheme for critical mineral processing

Separately, the Cabinet approved the Capex Support Scheme to Promote Critical Mineral Processing, with a financial outlay of ₹2,814 crore over five years.

The move comes amid concerns over the geographical concentration of critical mineral processing in a handful of global locations. Such concentration exposes supply chains to geopolitical disruptions, price volatility and potential supply restrictions, posing risks to supply chain resilience and economic security.

Critical minerals are increasingly important for clean energy technologies and advanced manufacturing, making secure access to and processing of these materials important for national security, economic sovereignty, and India's decarbonisation goals.

₹4,371 crore VISTAR scheme for official statistics

The Cabinet also approved the Viksit Bharat Initiative for Statistical Transformation, Analytics & Research (VISTAR) scheme for FY27 to FY31, with an outlay of ₹4,371.10 crore.

Aligned with the Viksit Bharat 2047 vision, the scheme seeks to establish a dynamic, real-time and future-ready official statistical architecture with greater timeliness, improved data granularity and interoperability through harmonised and AI-ready datasets.

VISTAR will cover statistical and data management activities of the Ministry of Statistics and Programme Implementation (MoSPI). The scheme will provide flexibility to allocate resources according to immediate policy requirements and support large-scale surveys, methodological research, digital transformation and national data governance.

The government expects the programme to play a key role in upgrading India's official statistical system and strengthening the availability and quality of data for policymaking.

Fast-track courts scheme extended till 2031

The Cabinet has also approved the continuation of the Centrally Sponsored Scheme for Fast Track Special Courts (FTSCs), including exclusive POCSO Courts, for another five years—from April 1, 2026, to March 31, 2031.

The scheme has a total financial outlay of ₹3,788.04 crore, comprising a central share of ₹2,353.15 crore and a State/UT share of ₹1,434.89 crore. The Centre's contribution will be funded through the Nirbhaya Fund. The approved scheme provides for the operationalisation of 850 FTSCs, including exclusive POCSO Courts, across participating States and Union Territories.

Each court will have a dedicated judicial officer, special public prosecutor and six support staff to facilitate the expeditious disposal of pending cases relating to rape and offences under the Protection of Children from Sexual Offences (POCSO) Act, 2012.