GEC third phase in final stages, up for Cabinet approval
In this note
1. At a Glance
- Green Energy Corridor (GEC) Phase-III is in final planning and has been sent to the Union Cabinet for approval; the scheme is expected to carry an outlay exceeding ₹50,000 crore [4].
- GECs are transmission infrastructure projects that evacuate electricity generated from renewable sources (solar, wind) from resource-rich areas to demand centres, synchronised with the conventional grid [4].
- Directly linked to India's 450 GW renewable energy capacity target by 2030 and to intra-state grid strengthening in RE-rich States [2][4].
- High-yield for Prelims (scheme facts, ministry, GW targets) and Mains GS-III (infrastructure, energy security, renewable integration).
2. Why in the News
- The Union Government is in the final stages of planning GEC Phase-III (intra-state), and the proposal has been sent to the Union Cabinet for final approval, per senior government officials cited by The Hindu (11 August 2026) [4].
- The scheme's outlay is reported to exceed ₹50,000 crore [4].
- In a submission to the Parliamentary Standing Committee on Energy on 6 August 2026, the Ministry of New and Renewable Energy (MNRE) stated the aim to evacuate about 135 GW of renewable energy in Phase-III [4].
- The Committee's report also flagged concerns causing delays in completion of Phase-I and Phase-II [4].
- Most packages under Phase-II have been awarded and are expected to be completed within the next 2 years [4].
3. Background & Evolution
- GEC Phase-I: Implemented in Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu for grid integration/evacuation of approx. 24 GW RE power; originally targeted for completion by 2022 [1].
- GEC Phase-II (Intra-State Transmission System, InSTS): Cabinet Committee on Economic Affairs approved addition of approx. 10,750 ckm of transmission lines and approx. 27,500 MVA transformation capacity across seven States — Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, Uttar Pradesh — to integrate approx. 20 GW of RE capacity [1][2].
- Project cost: ₹12,031.33 crore, with central financial assistance (CFA) from MNRE of ₹3,970.34 crore (~33%); remaining ~67% via loans from KfW/REC/PFC [2].
-
Scheduled commissioning timeline: March 2026 [2].
-
GEC Phase-II (Inter-State Transmission System, ISTS): Separately approved for a 13 GW Renewable Energy Project in Ladakh, targeted for FY 2029-30, estimated cost ₹20,773.70 crore [1].
- GEC Phase-III (proposed): Focus on further augmenting intra-state transmission lines in "renewable-energy rich States," targeting evacuation of about 135 GW of renewable energy [4].
4. Core Static Facts
| Aspect | Detail |
|---|---|
| Nodal Ministry | Ministry of New and Renewable Energy (MNRE) [1][2][4] |
| Purpose | Evacuate RE power (solar, wind) from resource-rich regions to grid/demand centres, synchronised with conventional power stations [4] |
| Phase-I scope | ~24 GW RE evacuation, 8 States, target completion 2022 [1] |
| Phase-II (InSTS) scope | ~10,750 ckm lines, ~27,500 MVA substations, ~20 GW RE, 7 States, cost ₹12,031.33 crore, CFA ₹3,970.34 crore, commissioning target March 2026 [1][2] |
| Phase-II (ISTS-Ladakh) scope | 13 GW RE project, cost ₹20,773.70 crore, target FY 2029-30 [1] |
| Phase-III (proposed) scope | ~135 GW RE evacuation target, outlay reportedly >₹50,000 crore, awaiting Cabinet approval, focus on intra-state lines in RE-rich States [4] |
| Oversight body | Parliamentary Standing Committee on Energy (flagged delays in Phase-I/II) [4] |
| National RE target | 450 GW installed RE capacity by 2030 [2] |
5. Multi-Dimensional Analysis
Economic
- Large capital outlay (Phase-III >₹50,000 crore) signals continued public infrastructure investment in energy transition [4].
- Reduces transmission bottlenecks that otherwise strand RE capacity, improving returns on private RE investment.
Environmental
- Enables higher absorption of solar/wind power into the grid, supporting decarbonisation and the 450 GW RE-by-2030 target [2].
Scientific/Technological
- Involves synchronising variable RE generation with conventional grid infrastructure — a core grid-integration and power systems engineering challenge [4].
Administrative
- Implementation is State-wise (intra-state lines), requiring Centre-State coordination on land, right-of-way, and DISCOM/transco execution.
- Phase-I and Phase-II both faced completion delays, as flagged by the Parliamentary Standing Committee — a recurring administrative bottleneck [4].
Governance
- Cabinet approval process and parliamentary committee scrutiny (Standing Committee on Energy) reflect institutional oversight of large infrastructure schemes [4].
6. Recent Developments (last 12-18 months)
- 6 August 2026: MNRE's submission to the Parliamentary Standing Committee on Energy stated the aim to evacuate ~135 GW of RE in GEC Phase-III [4].
- 11 August 2026 (reported): GEC Phase-III sent to Union Cabinet for final approval, with outlay >₹50,000 crore [4].
- Ongoing: Most Phase-II packages awarded; completion expected within the next 2 years [4].
7. Prelims Hooks (high-density factual bullets)
- GEC stands for Green Energy Corridor [4].
- GEC Phase-III's proposed outlay: more than ₹50,000 crore [4].
- GEC Phase-III target: evacuate about 135 GW of renewable energy [4].
- Nodal Ministry for GEC schemes: Ministry of New and Renewable Energy (MNRE), not MoEFCC or Ministry of Power [1][4].
- GEC Phase-I covered 8 States: Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu [1].
- GEC Phase-I target: ~24 GW RE evacuation, originally slated for completion by 2022 [1].
- GEC Phase-II Intra-State component covers 7 States: Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, Uttar Pradesh [1][2].
- GEC Phase-II Intra-State: ~10,750 ckm transmission lines and ~27,500 MVA substation capacity for ~20 GW RE integration [2].
- GEC Phase-II Intra-State cost: ₹12,031.33 crore; CFA from MNRE: ₹3,970.34 crore (~33%) [2].
- Balance funding (67%) for GEC Phase-II sourced as loans from KfW, REC, PFC [2].
- GEC Phase-II Inter-State component targets a 13 GW RE project in Ladakh, cost ₹20,773.70 crore, target FY 2029-30 [1].
- National RE capacity target linked to GEC: 450 GW by 2030 [2].
- Parliamentary body overseeing GEC implementation scrutiny: Standing Committee on Energy [4].
- GEC transmits power by synchronising RE sources (solar, wind) with conventional power stations in the grid [4].
- Phase-II Intra-State GEC's scheduled commissioning: March 2026 [2].
8. Mains Relevance
- GS-III: Infrastructure — Energy; Conservation, environmental pollution and degradation; Achieving energy security.
- GS-III: Growth & Development — Government policies and interventions for renewable energy transition.
- Possible question stems: 1. "Discuss the role of Green Energy Corridors in India's transition to renewable energy. What administrative bottlenecks have delayed their implementation?" (GS-III) 2. "Examine the significance of intra-state transmission infrastructure in achieving India's 450 GW renewable energy target by 2030." (GS-III) 3. "Federal coordination is critical to the success of centrally sponsored energy infrastructure schemes. Discuss with reference to the Green Energy Corridor." (GS-II/GS-III)
9. Related Topics to Study Next
- National Electricity Plan / Transmission Plan — GEC is part of broader transmission planning by CEA/POWERGRID.
- 450 GW RE Target & National Solar Mission — the demand-side driver GEC infrastructure serves [2].
- PM-KUSUM / PM Surya Ghar schemes — complementary RE generation schemes needing evacuation infrastructure.
- Inter-State Transmission System (ISTS) waiver for RE projects — related policy incentive for RE evacuation.
- Ladakh Renewable Energy Project (13 GW) — a specific GEC Phase-II ISTS component [1].
- Parliamentary Standing Committee on Energy reports — source of implementation critique for GEC [4].
- Green Hydrogen Mission — another renewable-linked infrastructure push by MNRE.
- State Electricity Regulatory Commissions & DISCOM reforms — administrative layer affecting intra-state transmission execution.
10. Common Errors / Trap Areas
- Confusing the nodal ministry: GEC is under MNRE, not the Ministry of Power (though Ministry of Power hosts general information; MNRE drives the scheme and CFA) [1][2][4].
- Mixing up Intra-State (InSTS) vs Inter-State (ISTS) components of Phase-II — different States/regions, different costs, different targets (20 GW intra-state vs 13 GW Ladakh via ISTS) [1][2].
- Confusing GEC Phase numbers with GW targets — Phase-I (~24 GW), Phase-II Intra-State (~20 GW), Phase-III (proposed, ~135 GW) [1][2][4].
- Assuming Phase-III is already Cabinet-approved — as of the news report, it has only been sent for approval, not yet cleared [4].
- Treating GEC as solely a generation scheme — it is a transmission/evacuation infrastructure scheme, not a power generation scheme [4].
Sources
- 1Green Energy Corridor - Intra-State Transmission System Phase-II scheme / Cabinet approves GEC Phase-II (ISTS) Ladakhpib.gov.in · tier 1
- 2Intra-State GEC Phase-II — MNREmnre.gov.in · tier 1
- 3Green Energy Corridor Schemes / Overview — MNREmnre.gov.in · tier 1
- 4"GEC third phase in final stages, up for Cabinet approval," The Hindu Business Line, 11 August 2026thehindu.com · tier 4