Union Cabinet Approves ₹14,500 Crore Grid Scale Storage Scheme: Exide, Amara Raja and Others in Focus

The Government of India has introduced a major financial support mechanism to address power grid distribution requirements.  

On November 4, 2026, the Union Cabinet approved a viability gap funding allocation to set up infrastructure across multiple states between fiscal year 2027 and fiscal year 2031.  

Details of the National Storage Scheme 

The approved scheme entails ₹14,500 crore of viability gap funding to establish 92 GWh of grid scale storage capacity. The total estimated investment required for the plan is ₹97,600 crore.  

Out of the 92 GWh target, 60 GWh is allocated for hydro pumped storage, 30 GWh for battery energy storage systems, and 2 GWh for other technologies. Battery projects must maintain at least 40% domestic content, and funds are allocated via competitive bidding.  

Financial Performance of Linked Battery Manufacturers 

Exide Industries reported a 65.4% increase in net profit to ₹2.9 crore on a revenue of ₹52.9 crore during the second quarter of fiscal year 2027, with operating earnings before interest, taxes, depreciation, and amortisation margins reaching 10.6%. 

Conversely, Amara Raja Energy and Mobility recorded a 44.9% decline in consolidated profit to ₹1.5 crore for the same quarter, while its revenue grew 18.5% to ₹41.1 crore. 

 Amara Raja plans a capital expenditure of ₹17,000 crore for fiscal year 2027, allocating ₹13,000 crore to its new energy business. 

Read More: Tata Power Share Price in Focus; Commissions 300 MW Project for SECI in Karnataka! 

Expansion Plans of Power Generation Utilities 

JSW Energy has 15.1 GW of installed capacity, with renewables making up 61% of its operating portfolio. In the second quarter of fiscal year 2027, its consolidated profit rose 38% to ₹11.4 crore, and revenue reached ₹63.7 crore.  

Tata Power possesses 16.7 GW of operational capacity, with 9.6 GW under construction. Tata Power commissioned 419 MW of utility scale projects and 131.2 MWh of battery storage during the quarter, planning a ₹25,000 crore investment for fiscal year 2027. 

Conclusion 

The government approved ₹14,500 crore for a 92 GWh grid scheme out of a required ₹97,600 crore investment. JSW Energy profit reached ₹11.4 crore, while Tata Power operated 16.7 GW of capacity.  

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