By Daniyal, Jingye New Energy. Published November 10, 2026.

India's Union Cabinet approved the Viability Gap Funding scheme for grid-scale energy storage on 4 November 2026 (Prime Minister's Office). The 92 GWh target equals about 170% of the country's present grid-scale storage capacity, and it is one step towards the 411 GWh the government says India needs by 2031-32.

The money is not the only headline. For the first time, the scheme sets a 40% minimum domestic content requirement (DCR) for battery projects. That matters because India still has a big gap between awarded and built storage: IEEFA and JMK Research count 10.2 GWh of BESS commissioned so far, with only about 1.9% of the 50 GW utility-awarded pipeline in operation (IEEFA-JMK, October 2026). This post explains what the 40% rule means for developers, EPCs and equipment buyers, and how to plan for it.

What did India's Cabinet approve on 4 November 2026?

A five-year VGF programme that pays part of the cost of new storage projects, with capacity awarded through tariff-based competitive bidding. Here is how the 92 GWh splits.

Sources: Prime Minister's Office release, 4 Nov 2026; Renewable Watch, 5 Nov 2026.

Two numbers help put it in context. The VGF covers about 14.9% of the estimated ₹97,600 crore investment (our calculation), so developers still finance most of each project. And batteries are about a third of the target (30 of 92 GWh), with pumped hydro taking the largest share.

How does this compare with India's earlier VGF schemes?

It is the biggest of the three, and the first to set the battery local-content bar at 40% from day one.

Sources: News On AIR, Sept 2023; ESS News, Dec 2025; Energy-Storage.news; PMO, Nov 2026. The 2023 scheme covered up to 40% of capital cost, paid in five tranches.

Other VGF rules already apply to battery projects. Since August 2025, EMS application software must be developed in India, and refurbished cells are not allowed (Energetica India). Expect those rules to carry over unless the new guidelines say otherwise.

What does the 40% domestic content rule mean for a BESS project?

It means a big share of each project's value has to be made in India, and cells are the item that decides how hard that is. The exact calculation method has not been published, so treat the numbers below as a planning guide, not a compliance test.

Under the December 2025 rule, the 20% was measured against total project cost, and Indian-developed EMS software counted towards it (ESS News). If the 40% works the same way, everything in the project budget matters: cells, modules, containers, PCS, transformers, EMS, civil works, grid connection and installation.

To see why cells matter so much, we split a Chinese 2-hour AC container price into cells and everything else, using IEEFA-JMK's September 2026 prices.

Prices from IEEFA-JMK Research, October 2026. Split and shares are Jingye New Energy estimates. Real project costs vary by duration, site, grid connection and contract terms.

What this tells developers:

• Imported cells take up most of the equipment value. If cells come from abroad, most of the 40% has to come from Indian modules or packs, PCS, transformers, EMS, civil and electrical works, and installation.
• Local cell supply will become a bidding advantage. IEEFA-JMK tracks new Indian cell capacity, including Exide's first phase of 6 GWh in Karnataka. Projects that can source Indian cells will find the 40% much easier.
• Local pack and module assembly is the middle path. Assembling modules and packs in India from imported cells adds local value without waiting for Indian cell lines to scale.
• Paperwork matters. Ask every supplier for a line-by-line local content calculation, and keep it ready for the procuring entity.

How much equipment does 30 GWh of battery storage mean?

About 5,982 containers of our 5.015 MWh size, at nameplate energy. That is our own estimate, based on the 5,015 kWh rating on our 5.015 MWh BESS container page, and it does not include any overbuild for degradation or losses.

Prices are also moving. The latest Indian standalone BESS tariffs are rising: MSEDCL's 2,000 MW / 4,000 MWh tender cleared at ₹2.38 lakh per MW per month and SJVN's 265 MW / 530 MWh at ₹2.35 lakh, and about 57% of September's tendered capacity was re-tendered because the lowest bids were off benchmark (IEEFA-JMK). Higher DCR may push costs up further, which is one reason the VGF exists.

The per-MWh VGF rate for batteries has not been announced. Spread across all 92 GWh, the ₹14,500 crore works out to about ₹15.8 lakh per MWh (our estimate). For comparison, recent state tenders under earlier VGF tranches, such as KREDL's and UPCL's, offered ₹18 lakh per MWh (IEEFA-JMK).

For more on India's tender pipeline and the earlier 20% rule, see our guide to India's 50 GWh GEC-III battery plan.

What should developers and EPCs do before the first tenders open?

Start the localisation plan now, because the bid deadline will be too late. These are the steps we suggest:

• Map your bill of materials. List every major item with its cost and country of origin, then calculate how close you are to 40% under the 2025 method (share of total project cost).
• Decide your cell strategy. Indian cells, imported cells with Indian pack assembly, or a mix. Each gives a different DCR result and a different price.
• Choose open-protocol equipment. EMS software must be Indian-developed, so the battery system must talk cleanly to a local EMS over standard protocols.
• Line up partners early. Indian assemblers, PCS and transformer makers, and EPCs with local content records will be in high demand once tenders open.
• Check quality, not only percentages. Refurbished cells are banned, and late or failed projects are expensive. NTPC terminated an EPC contract for its Mouda BESS over missed milestones.

Most BESS problems start in integration and commissioning rather than in cells. Our BESS safety buyer checklist covers what to check.

How can Jingye New Energy support DCR-compliant projects in India?

We can't make imported equipment count as Indian content. What we can do is supply the parts that fit your localisation plan and make them easy to integrate with Indian partners.

• 5.015 MWh liquid-cooled BESS container: 314Ah LFP cells, 1331.2 V DC, up to 2.5 MW, in a standard 20-foot container, with a three-level automatic alarm and fire extinguishing system at pack, cluster and compartment level.
• Open communication: Ethernet, CAN and Modbus RTU on the container, so it can connect to an Indian-developed EMS. Capacity, voltage platform, communication protocols and grid-connection requirements can be customised through our OEM/ODM service.
• Cell contact systems (CCS) for Indian module and pack assemblers: annual CCS capacity of 2.4 million pieces, with IATF 16949 certification for the CCS quality system.
• Standards listed for the container: GB/T 36276, IEC/EN 62619, IEC/EN 62477, UN 38.3 and IEC/EN 63056.

Behind the products are a 15 GWh module/PACK production line with MES traceability from materials to finished product, a CNAS-accredited testing laboratory, and ISO quality, environmental and occupational health and safety certification (company profile).

We also run large systems ourselves. The Jiangsu Jingye Iron and Steel 50 MW / 100.32 MWh station uses 20 of our 5 MWh battery cabins with 10 sets of 5 MW PCS, and at Huaxi Special Steel (15 MW / 30.09 MWh) Jingye New Energy designed, funded, built and operates the station. See our full energy storage system range.

Frequently asked questions

What did India's Cabinet approve on 4 November 2026?

A ₹14,500 crore Viability Gap Funding scheme for 92 GWh of grid-scale energy storage between FY2026-27 and FY2030-31: 60 GWh pumped hydro, 30 GWh battery storage and 2 GWh other technologies, with an estimated ₹97,600 crore of total investment.

What is the domestic content requirement for BESS under the new scheme?

Battery storage projects must meet a minimum domestic content requirement of 40%. Since December 2025, VGF-supported battery projects have needed 20%.

How is the 40% domestic content calculated?

The calculation method has not been published yet. Under the December 2025 rule, the 20% was measured against total project cost, and indigenously developed EMS software counted towards it. Check the bidding documents when they are released.

Can imported battery cells still be used?

Nothing published so far bans imported cells, but cells are the largest single cost item. Using IEEFA-JMK price data, we estimate cells make up about 63% of a Chinese 2-hour AC container's price, so projects using imported cells will need most of their local content to come from other parts of the project.

How much VGF will a battery project get per MWh?

The per-technology rate has not been announced. Across all 92 GWh, the scheme averages about ₹15.8 lakh per MWh (our estimate), while recent state tenders under earlier VGF tranches offered ₹18 lakh per MWh.

When will the first tenders under the new scheme open?

The bidding procedures have not been published yet. Capacity will be allocated through tariff-based competitive bidding, and both public and private distribution companies can receive VGF for battery projects.

Hebei Jingye New Energy Technology Co., Ltd, part of Jingye Group, makes utility-scale BESS containers, C&I energy storage cabinets, CCS cell contact systems, commercial vehicle batteries and DC fast EV chargers.