The Union government is expected to grant financial assistance of around Rs 22,400 crore to various states under Phase-III of the Green Energy Corridor (GEC-III) to develop intra-state transmission infrastructure.

Proposed in the FY26 Union Budget, GEC-III has a total projected cost of Rs 56,000 crore, with the Centre covering 40 percent of the expenditure. The scheme will primarily benefit Gujarat, Rajasthan, Karnataka, Maharashtra, and Andhra Pradesh, with Gujarat leading the effort through transmission projects worth Rs 29,000 crore, followed by Rajasthan at Rs 9,000 crore.

GEC-III aims to accelerate grid infrastructure development to support India’s target of 500 GW non-fossil capacity by 2030 and facilitate the energy transition. GEC Phases I and II are in progress across 10 states with similar central financial support.

According to officials, the Ministry of New and Renewable Energy (MNRE) has recently engaged with stakeholders to finalise project scope, with state inputs expected by the end of May 2025. The ministry emphasised the scheme’s role in offsetting infrastructure costs, lowering power tariffs, and encouraging private investment in the renewable sector.