Cabinet approves Rs 3,760 crore viability fund for battery systems; What is BESS and why is it needed

The Union cabinet on Wednesday approved a viability gap funding scheme (VGF) to encourage companies to set up battery energy storage systems in the country, offering up to 40% of the capital cost of the project. The government has set aside Rs3,760 crore from this year’s budget for the scheme aimed at creating 4,000 megawatt hours (MWh) battery energy storage systems (BESS) by 2030-31.