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India: Cabinet Approves Rs 37.60bn VGF Scheme for BESS Projects

The Cabinet has approved a viability gap funding (VGF) scheme on Wednesday under which companies interested in developing Battery Energy Storage Systems (BESS) projects will receive upto 40 percent of their capital cost from the Central government.

 

An official statement released by the government said, “The approved scheme envisages the development of 4,000 MWh of BESS projects by 2030-31, with a financial support of up to 40 percent of the capital cost as budgetary support in the form of Viability Gap Funding (VGF).

 

A watershed moment in the long list of pro-environment measures taken by the Government, the move is expected to bring down the cost of battery storage systems increasing their viability.”

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