The Union Cabinet on Wednesday approved the ₹1.86 lakh crore PM‑DHARA Scheme, a flagship initiative aimed at strengthening India’s intra‑state transmission system and deploying 50 GWh of battery storage to evacuate 135 GW of renewable energy. The scheme, which stands for PM‑Developing Harmonised and Accelerated Renewable‑energy Access, is part of the government’s plan to reach 500 GW of renewable capacity by 2030. The Cabinet, chaired by Prime Minister Narendra Modi, sanctioned a total project outlay of ₹1,86,405 crore, comprising ₹1,36,378 crore for intra‑state transmission and ₹50,000 crore for battery energy storage systems. Central financial assistance of ₹54,082 crore will offset intra‑state transmission charges and help keep power costs down for end users.

On Thursday, October 1, the market spotlight turned to power and allied companies such as Power Grid Corporation of India, Adani Energy Solutions, GE Vernova T&D India, Hitachi Energy India and CG Power and Industrial Solutions. The approval of the PM‑DHARA Scheme has prompted a surge in shares of several transmission and equipment suppliers, with Transformers & Rectifiers India (TARIL) rising nearly 10 % to ₹296.20, GE Vernova T&D up 2.49 % to ₹4,305.70, Adani Energy Solutions up 5 % to ₹1,382.10, Hitachi Energy India up 2.38 % to ₹31,360 and CG Power and Industrial Solutions up 3.31 % to ₹881.40. Power Grid shares fell 1.42 % to ₹256.80.

The PM‑DHARA scheme is designed to strengthen India’s intra‑state transmission system (InSTS) so that more renewable energy can be generated and moved to where it is needed. It will support the expansion and upgrade of intra‑state transmission infrastructure, enabling states to evacuate up to 135 GW of renewable power. A key part of the scheme is the allocation of ₹50,000 crore for 50 GWh of Battery Energy Storage Systems (BESS). Battery storage will help store surplus power and supply it when renewable generation is lower, thereby improving grid flexibility and reliability.

For the power sector, the scheme could translate into higher demand for transmission equipment, grid infrastructure, transformers, substations and energy‑storage systems over the coming years. Companies involved in transmission, power equipment and battery storage are expected to benefit, although the actual advantage will depend on project awards and their participation in the scheme. The scheme’s allocation of ₹1,36,378 crore for intra‑state transmission infrastructure creates a large opportunity for transmission project developers and operators such as Power Grid Corporation of India. Adani Energy Solutions, with its significant transmission business, could win new projects through competitive bidding. Equipment suppliers like GE Vernova T&D, Hitachi Energy and CG Power are likely to see increased demand for transformers, substations and high‑voltage equipment.

All greenfield projects under the InSTS component will be implemented through the Tariff Based Competitive Bidding (TBCB) mode, while brownfield upgrades and network‑strengthening works will be carried out under the Cost Plus Basis (CPB). State Transmission Utilities will serve as the overall implementing agencies, and Transmission Service Providers (TSPs) will participate in the TBCB process under the Build‑Own‑Operate‑Maintain (BOOM) model. The scheme is targeted to be set up by FY 2032‑33, with a total project outlay of ₹1,86,405 crore, comprising ₹1,36,378 crore for intra‑state transmission and ₹50,000 crore for 50 GWh of BESS. Central financial assistance of ₹54,082 crore will offset intra‑state transmission charges.

The scheme is expected to generate significant direct and indirect employment across the power, manufacturing and construction sectors. Manufacturing and deployment of Battery Energy Storage Systems will create employment opportunities in the domestic energy‑storage industry. Long‑term skilled employment is also anticipated in operations, maintenance and grid management across participating States. The scheme will support India’s target of achieving 900 GW of installed non‑fossil capacity by 2035, contribute to long‑term energy security and promote ecologically sustainable growth by helping reduce the country’s carbon footprint. The government’s focus on grid flexibility and renewable integration is reflected in the allocation of ₹50,000 crore for BESS and the large intra‑state transmission investment.